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HomeMy WebLinkAboutDRC-2016-005892 - 0901a0688061fd43LLRW/U-Miil Document Scanning Form Document Type ^Incoming^^J Outgoingf j Internail DRC Program _____LLRWT ' T GSAl I U-MIIII Facility/License# ! fTltf Document Date Document Title <^4/ Cfou^Juj/zh , ( Check Applicable Folder SelectionApplication!!' 1 Correspondence! Compliance! i y\ License! |Check Applicable Document Class Analytical| 0 F; Email! ^Inspection Report GW Permit Other Letter Monitoring Report UZl P R C - Z O \ < o - 0 0 5 .0^2- Department of Environmental Quality Alan Matheson Executive Director State of Utah DIVISION OF WASTE MANAGEMENT AND RADIATION CONTROL Scott T. Anderson Director GARY R. HERBERT Governor SPENCER J. COX Lieutenant Governor DR>C- ZOUo'OO MEMORANDUM TO:File FROM: Tom Rushir _ THROUGH: Phil Goble. DATE:March 29, 2016 SUBJECT: Review of the Energy Fuels Resources (USA) Inc. 4th Quarter 2015 Ground Water Monitoring Report for the White Mesa Uranium Mill The Utah Division of Waste Management and Radiation Control (“DWMRC”) has reviewed the following documents submitted by Energy Fuels Resources (USA) Inc. (“EFR”): 1. EFR, Februaiy 22, 2016 - Transmittal of 4th Quarter 2015 Groundwater Monitoring Report Groundwater Quality Discharge Permit UGW370004 White Mesa Uranium Mill. 2. EFR, February 11,2016- State of Utah Ground Water Discharge Permit No. UGW370004 White Mesa Uranium Mill - Notice Pursuant to Part I.G.l(a). 3. EFR, February 11,2016 - State of Utah Ground Water Discharge Permit No. UGW370004 White Mesa Uranium Mill - Removal of Certain Groundwater Monitoring Parameters from Accelerated Monitoring Status. 4. EFR, March 3,2016 - Transmittal of Plan and Time Schedule under Utah Ground Water Discharge Permit UGW370004 Part I.G.4(d) White Mesa Mill. The review was conducted to ensure compliance with all applicable parts of Utah Groundwater Discharge Permit No. UGW370004 (“Permit”) issued for the White Mesa Uranium Mill located in Blanding, Utah. II. EFR February 22.2016 4th Quarter 2015 Groundwater Monitoring Report 1. Checklist of Significant Findings of the 4*** Otr. 2015 Report and Related Actions at the White Mesa Uranium Mill: a. The 4th Quarter 2015 Report was received on February 24,2016, which was before the due date (Permit Part I.F. 1 - due date of March 1,2016). b. DWMRC notes that samples were analyzed by American West Analytical Laboratories (“AWAL”) with the exception of Gross Radium Alpha which was analyzed by GEL Laboratories LLC. DWMRC verified that the laboratories have current Utah certification for all parameters/methods used. No deviations/violations of I. Review Summary: 195 North 1950 West • Salt Lake City, UT Mailing Address: P.O. Box 144880 • Salt Lake City, UT 84114-4880 Telephone (801) 536-0200 • Fax (801)-536-0222 • T.D.D. (801) 536-4414 www.deq.utah.gov Printed on 100% recycled paper EFR 4th Quarter 2015 Groundwater Monitoring Report DWMRC Review Memo Page 2 the currently approved Quality Assurance Plan for the White Mesa Uranium Mill were noted. c. Per a previous EFR request, a May 25,2012 EFR Permit modification request was made in order to document accelerated reporting and monitoring agreements made during a teleconference with the DWMRC. Per DWMRC staff discussions: The May 25,2012 request will be included with the White Mesa Mill Ground Water Permit Renewal. DWMRC review of the 4th Quarter 2015 Report recognizes the telephone agreements regarding timelines for EFR to submit compliance notices. The modification request is currently being addressed through the Permit renewal process. d. DWMRC Stipulated Consent Agreement, Docket No. UGW12-03 required EFR to submit an October 10,2012 Source Assessment Report, an April 13, 2012 pH Report, and a December 12, 2012 Pyrite Investigation Report for previously documented out- of-compliance parameters (multiple parameters). Per DWMRC review findings as documented in a DWMRC review memo dated April 23, 2013, and transmitted via letter to EFR dated April 25,2013, it was recommended that specific GWCL parameters for monitoring wells be modified (12 instances), GWCL’s for pH be modified for all monitoring wells, and that GWCL’s be removed from the permit for three up-gradient monitoring wells. These requests are currently being addressed through the Permit Renewal process. Review of the 4th Quarter 2015 Report is based on current Permit GWCLs, modified GWCLs are required to undergo public notice requirements per the Utah Administrative Code and listed in an active Permit. e. Permit compliance limits for monitoring wells around the White Mesa Mill Tailings Cell 4B (Monitoring Wells MW-35, MW-36 and MW-37) were approved by the Director via letter dated July 15, 2014. The approval was based on DWMRC staff review of a May 1,2014 EFR Background Groundwater Quality Report for the wells. The approved GWCL’s will not be enforceable until final inclusion in the renewal permit; therefore, the 4th Quarter 2015 Report data results were compared with the interim limits or groundwater quality standards as listed in the currently active Permit. f. Laboratory QA/QC flags were documented in the review period analytical data reports from the contract laboratories. Per DWMRC review it appears that all discrepancies were self-reported by EFR. g. One compliance parameter went into accelerated monitoring frequency during the monitoring period, as discussed below. 2. Accelerated Monitoring and POC Wells Exceeding GWCL’s: When a monitoring well has a pollutant that exceeds a Ground Water Compliance Limit (GWCL) set forth in Table 2 of the Permit, it is in Probable Out-of-Compliance (POOC) status. According to the Permit, EFR is then required to immediately initiate accelerated sampling of that pollutant (see the Permit, Part I.G.1). When monitoring wells have parameters that have exceeded the Ground Water Compliance Limit (GWCL) two or more consecutive times they are in Out-of-Compliance (OOC) status (see the Permit, Part I.G.2). In the event a constituent is in OOC status, EFR is required to prepare and submit within 30 calendar days to the Director a plan and time schedule for assessment of the sources, extent and potential dispersion of the contamination, and an evaluation of potential remedial action to restore and maintain groundwater quality to ensure that Permit limits will not be exceeded at the compliance monitoring point and that DMT or BAT will be re-established, in accordance with Part I.G.4(c) of the Permit. Accelerated Monitoring Requirement Exception: Per past DWMRC review; 1st Qtr., 2nd Qtr., and 3rd Qtr. 2011 Groundwater Monitoring Reports, DWMRC issued a February 7, 2012 Notice of Enforcement Discretion (“NOED”) for failure on the part of EFR to comply with these timelines for acceleration of groundwater monitoring at well MW-35. EFR stated in a March 26,2012 response to the NOED that based on an agreement made between DWMRC and EFR during a telephone conference call on April 5,2010, EFR is not required to implement accelerated monitoring until “the month following the submission of the Exceedance Notice for a specified quarter.” Based on DWMRC review of notes taken during the April 5,2010 telephone conference (Loren Morton 4/5/10), EFR verbally requested to wait until the end of the quarter to submit the notice of out-of compliance status - but within 30 days of the last lab report that EFR receives for the quarterly monitoring event. DWMRC notified EFR by letter (dated April 16,2012) that in order to formalize the April 5,2010 discussion items related to out-of-compliance reporting and sampling, a written request for a groundwater permit modification (groundwater permit, out-of-compliance notification and accelerated monitoring requirements) was required for Director review and approval. EFR submitted a May 25,2012 written request for a Permit modification, including redline copies of pertinent pages of the Permit to reflect the agreements made during the April 5,2010 conference call. The Permit modification request is currently under DWMRC review and is pending inclusion in the Permit Renewal. In the interim, DWMRC is honoring the teleconference agreements and is not pursuing Permit enforcement based on EFR failure to meet the current time and schedule submission requirements as stated in the Permit. EFR 4th Quarter 2015 Groundwater Monitoring Report DWMRC Review Memo Page 3 Current Accelerated Monitoring Status: The table below (Table 1) lists monitoring wells with parameters currently in OOC or POOC status and therefore required to be sampled under the accelerated monitoring requirements: Table 1 - Wells Monitored Quarterly Accelerated to Monthly Monitoring Well Class ♦Position Parameter Date of First Exceedance of GWCL Date Accelerated Monitoring First Required MW-11 Class II water D-3 Manganese Februaiy 2010 May 2010 MW-14 Class III water D-4A Field pH February 2010 May 2010 MW-25 Class III water C-3 Field pH Uranium Chloride 4 Quarter 2010 3rd Quarter 2010 3rd Quarter 2015 February 2013 March 2014 December 2015 MW-26(a)Class III water C-2 Field pH Nitrate + Nitrite (as N) Chloroform Uranium Chloride Dichloromethane February 2010 February 2010 February 2010 February 2010 February 2010 April 2010 May 2010 May 2010 May 2010 May 2010 May 2010 June 2010 MW-30 Class II water D-2 Nitrate + Nitrite (as N) Chloride Selenium February 2010 1st Quarter 2011 April 2010 May 2010 May 2011 July 2010 EFR 4th Quarter 2015 Groundwater Monitoring Report DWMRC Review Memo Page 4 Well Class ♦Position Parameter Date of First Exceedance of GWCL Date Accelerated Monitoring First Required Uranium Field pH Ammonia Fluoride 4th Quarter 2011 4th Quarter 2014 4th Quarter 2014 4th Quarter 2015 March 2014 March 2015 March 2015 March 2016 MW-31 Class III water D-2 Nitrate + Nitrite (as N) Chloride Sulfate TDS Selenium ______Field pH______ February 2010 1st Quarter 2011 4th Quarter 2010 September 2010 3rd Quarter 2012 February 2014 May 2010 May 2011 March 2011 January 2011 December 2012 June 2014 MW-35 Class II C-4B Uranium Manganese Thallium Adjusted Gross Alpha Selenium ______Field pH______ 2nd Quarter 2011 2nd Quarter 2011 3rd Quarter 2011 3rd Quarter 2011 3rd Quarter 2012 July 2011 July 2011 July 2011 July 2011 October 2011 December 2012 August 2011 D = Down-gradient; U = Up-gradient; C = Cross-gradient; 1,2,3,4A = Cell # a = Monitoring well MW-26 is a pumping well for the Chloroform investigation Wells Monitored Semi-annually Accelerated to Quarterly Monitoring Well Class ♦Position Parameter Date of First Exceedance of GWCL Date Accelerated Monitoring First Required MW-1 Class II water U-l Field pH Sulfate Chloride 3rd Quarter 2014 4th Quarter 2012 2nd Quarter 2015 T3 Quarter 2010 2nd Quarter 2010 2nd Quarter 2010 4th Quarter 2013 4th Quarter 2013 2nd Quarter 2015 2nd Quarter 2015 2nd Quarter 2015 4th Quarter 2015 1st Quarter 2015 1st Quarter 2013 1st Quarter 2016 MW-3 Class III water D-4A Selenium Field pH Fluoride Nitrate + Nitrite (as N) Sulfate Beryllium Cadmium Zinc Thallium 3rd Quarter 2010 3rd Quarter 2010 3rd Quarter 2010 2nd Quarter 2014 2nd Quarter 2014 1st Quarter 2016 1st Quarter 2016 1st Quarter 2016 3rd Quarter 2016 ^Quarter 2010 ^Quarter 2010 3rd Quarter 2010 3rd Quarter 2010 1st Quarter 2011 1st Quarter 2013 MW-3A Class III water D-4A Field pH Sulfate TDS Selenium Nitrate + Nitrate (as N) 2nd Quarter 2010 2nd Quarter 2010 4th Quarter 2010 4th Quarter 2012 MW-5 Class II water D-3 Uranium 4m Quarter 20 IQ r Quarter 2011 ^Quarter 2014 MW-12 Class III water D-3 Field pH Selenium 1st Quarter 2014 4th Quarter 2014 2nd Quarter 2015 3^ Quarter 2012 MW-15 Class III water D-4A Selenium Field pH 2“ Quarter 2012 4th Quarter 2013 2nd Quarter 2014 EFR 4th Quarter 2015 Groundwater Monitoring Report DWMRC Review Memo Page 5 Well Class *Position Parameter Date of First Exceedance of GWCL 2nd Quarter 2010 2nd Quarter 2010 2nd Quarter 2010 1st Quarter 2014 Date Accelerated Monitoring First Required MW-18 Class HI water U-l Thallium Sulfate TDS Field pH 3rd Quarter 2010 3rd Quarter 2010 3rd Quarter 2010 2nd Quarter 2014 MW-19 Class III water U-l Field pH Nitrate + Nitrite as N 2“ Quarter 2010 4th Quarter 2011 3rd Quarter 2010 1st Quarter 2012 MW-24 Class III water D-l Cadmium Thallium Field pH Fluoride Sulfate 2“ Quarter 2010 2nd Quarter 2010 2nd Quarter 2010 4th Quarter 2012 4th Quarter 2014 3rd Quarter 2010 3rd Quarter 2010 3rd Quarter 2010 1st Quarter 2013 2nd Quarter 2015 ^Quarter 2010 4th Quarter 2010 1st Quarter 2010 1st Quarter 2010 2nd Quarter 2013 4th Quarter 2015 ^Quarter 2010 4th Quarter 2014 3rd Quarter 2010 3rd Quarter 2010 1st Quarter 2014 3rd Quarter 2016 MW-27 Class III water U-l Nitrate + Nitrite (as N) Adjusted Gross Alpha TDS Chloride Sulfate Field pH ^Quarter 2014 3rd Quarter 2010 MW-28 Class in water D-l Field pH Chloride Cadmium Uranium Vanadium 1 Quarter 2014 2nd Quarter 2010 2nd Quarter 2014 2nd Quarter 2014 2nd Quarter 2014 2nd Quarter 2014 2nd Quarter 2014 2nd Quarter 2014 2sa_Quarter 2011 3”1 Quarter 2012 1st Quarter 2016 MW-29 Class III water D-2 Field pH TDS Sulfate 4“ Quarter 2010 2nd Quarter 2012 2nd Quarter 2015 ^Quarter 2010 2nd Quarter 2010 1st Quarter 2015 MW-32 Class IU water C-2 Adjusted Gross Alpha Field pH Chloride 3rd Quarter 2010 3 rd Quarter 2010 2nd Quarter 2015 ' D = Down-gradient; U = Up-gradient; C = Cross-gradient; 1, 2, 3, 4A = Cell # Table 1 above is a comprehensive list of all Groundwater Monitoring Wells in Accelerated Status as of the fourth quarter of 2015. EFR is required to notify the DWMRC on a quarterly basis regarding wells and parameters which went into accelerated monitoring during the period [Part I.G.l(a), Accelerated Monitoring Status Reports (AMSR)]. For the 4*11 quarter 2015 monitoring, the AMSR was received by the DWMRC dated February 11, 2016 (received by the DWMRC on February 12, 2016) and follow up Plan and Time Schedule [Required by the Permit Part I.G.4(d)] was received dated March 3,2016 (received by the DWMRC on March 7,2016). The follow up Plan and Time Schedule addresses exceedances of sulfate in monitoring well MW-18, Fluoride in monitoring well MW-24 and Field pH in monitoring well MW-24. 3. Monitoring Wells Purged for Two Casing Volumes Before Sample Collection; As stated in Section 6.2.7 of the EFR Quality Assurance Plan (QAP), Rev. 7.2, EFR has a choice regarding purge volumes as follows: “I. Purging three well casing volumes with a single measurement offield parameters 2. Purging two casing volumes with stable field parameters (within 10% RPD) 3. Purging a well to dryness and stability of a limited list offield parameters after recovery. ” Per DWMRC review of the Report, the following purge methods were used during the 4th Quarter 2015 (including accelerated samples). Purge methods and volumes are summarized on Table G-lAand Table G- 1B of the 4th Quarter 2015 Monitoring Report: EFR 4th Quarter 2015 Groundwater Monitoring Report DWMRC Review Memo Page 6 Quarter # Purged 2 Casing Volumes # Purged to Dryness # Purged 3 Casing Volumes or Continuous Pumping Wells 4th Qtr. 2015 33 When purging two casing volumes, EFR QAP Rev. 7.2 directs EFR to first calculate the amount of time to evacuate two casing volumes and then pump for that length of time. Per DWMRC cross-check of the field data sheets for each of the reports reviewed, it appears EFR correctly calculated the well casing volumes and evacuated the required two volumes (when 2 casing volume method selected) in monitoring wells prior to sample collection during the 4th Quarter 2015 monitoring period. Volumes are calculated according to measured pump rates and can be verified by calibration marks on the collection containers. During the 4th Quarter of 2015 monitoring three wells were pumped or bailed to dryness. In cases where wells are evacuated to dryness the QAP Rev. 7.2 requires that: “(vii) If the well is purged to dryness: Record the number of gallons purged on the Field Data Worksheet. The well should be sampled as soon as a sufficient volume of groundwater is available to fill sample containers. Upon arrival at the well after recovery or when sufficient water is available for sampling measure depth to water and record on the Field Data Worksheet. Take one set of measurements offield parameters for pH, specific conductance and temperature only. Collect the samples into the appropriate sample containers. Take an additional set of measurements offield parameters for pH, specific conductance and temperature after the samples have been collected. If the field parameters ofpH, specific conductance and temperature are within 10% RPD the samples can be shipped for analysis. If the field parameters of pH, specific conductance and temperature are not within 10% RPD, dispose of the sample aliquots, and purge the well again as described above. Repeat this process if necessary for three complete purging events. If after the third purging the event, the parameters of pH, specific conductance and temperature do not stabilize to within 10% RPD, the well is considered sufficiently purged and collected samples can be submittedfor analysis.” DWMRC staff verified that in cases where the monitoring well was evacuated to dryness and samples were collected, the number of gallons evacuated was recorded in compliance with the QAP. Also, DWMRC staff verified that depth to groundwater was measured and recorded (comments field) on the field sheet. EFR 4th Quarter 2015 Groundwater Monitoring Report DWMRC Review Memo Page 7 4. Relative Percentage Difference Calculations and Radiological Comparisons for Blind Duplicate Analysis; DWMRC conducted a review of the blind duplicate samples collected during the 4th Quarter 2015. Per the facility QAP, one blind duplicate must be collected with each sample batch. DWMRC confirmed that one blind duplicate was collected for each batch - 4 total during the quarterly event - two with the baseline samples (MW-35/MW-65 on 11-3-15 and MW-22/MW-70 on 11-17-15) and two with the accelerated samples (MW-30/MW-65 on 10-7-15 and MW-35/MW-65 on 12/14/15). The duplicates are required to be within 20% Relative Percent Difference (RPD), unless “the measured concentrations are less than 5 times the required detection limit (Standard Methods, 1998).” Per updated language in the QAP Rev. 7.2 Part 9.1.4, if any of the samples do not meet the comparison criteria (and are not qualified according to the 5 times method detection limit criteria) then EFR is required to conform to the procedures for corrective action listed as follows: 1. Notify the laboratory, 2. Request the laboratory review all analytical results for transcription and calculation errors, and, 3. If the samples are still within holding time, the QA Manager may request the laboratory re-analyze the affected samples. Per DWMRC cross check of the blind duplicate samples collected and analyzed during the 4th Qtr. 2015 sampling event all sample results conform to the Permit requirements (within 20% RPD) with the exception of Ammonia (as N) in duplicate MW-35/MW-65 for the November 3,2015 monitoring event and adjusted gross alpha in duplicate pair MW-35/MW65 for the December 14, 2015 accelerated monitoring event. Per the 4th Qtr. 2015 Report: “The duplicate results were within a 20% RPD in the quarterly samples except for ammonia in duplicate pair MW-35/MW-65. The ammonia results reportedfor MW-35/MW-65 were not five times greater than the reporting limits of 0.05 mg/L and as such the deviation from the 20% RPD requirement is acceptable.” '‘Duplicate error for duplicate pair MW-35/MW-65 in the December monthly event was above the acceptance limit specified in the QAP... The corrective actions that were taken in accordance with the QAP procedure are as follows: the QA manager contacted the Analytical Laboratory and requested a review of the raw data to assure that there were no transcription errors and the data were accurately reported. The laboratory noted that the data were accurate and reported correctly. It was noted during data review that the laboratory used sample MW-35 for the laboratory duplicate. The laboratory duplicate RPD was also outside of the laboratory established RPD limits. Based on 2 separate duplicate analyses of MW-35 (the laboratory and field), it appears that the duplication issues are related to a matrix interference. Reanalysis was not completed because of the suspected matrix interference issues.” Per DRC review of the MW-35/MW-65 blind duplicate sample it was noted that the analysis results did not overlap when considering the uncertainty of the results, as summarized on the table below: EFR 4th Quarter 2015 Groundwater Monitoring Report DWMRC Review Memo Page 8 Data Overlap Comparison: MW-35 pCi/L MW-65 pCi/L Result Uncertainty LB UB Result Uncertainty LB UB 4.69 0.549 4.14 5.24 6.58 0.676 5.90 7.26 Comparability Formula (Per EFR QAP 9.1.4): 6.58-4.69/(.6762 + ,5492)5 = 2.17 DWMRC notes that although the samples did not meet the comparability criteria, the QAP Section 9.1.4 only requires that EFR request that the lab check for transcription errors and request re-analysis if the sample is within holding time. Per the EFR description of follow up actions it appears that the actions are in conformance with the QAP requirements. 5. Analytical Laboratories Used by EFR Certified by State of Utah to Perform Analysis for all Analytes; The analytical laboratories (GEL Laboratories LLC, Charleston, SC and American West Analytical Laboratories, Salt Lake City, UT) were contracted by EFR to perform analysis on the samples collected during the 4* Quarter, 2015. Per DWMRC review of the National Environmental Laboratory Accreditation Management System Website (cross check of laboratory certification for specific parameters) it appears that the EFR contract laboratories were certified to perform analysis for the specified parameters during the review period as follows. GEL Laboratories LLC current Utah Certification: Basic Details Name GEL Laboratories, LLC Type of Lab Commercial TNI Lab Code TNI00188 EPA Code SC00012 State ID E87156 Website Extended Details Primary AB responsible for lab demographics Utah Department of Health GIS Location Description Comments Effective Date Commercial Samples Yes Active Yes Address 1 Type Location Company Contact JAMES B. WESTMORELAND Address 1 2040 Savage Rd Address 2 City Charleston State South Carolina Zip 29407 Country US Phone 8435568171 Fax 8437661178 Email jbw@gel.com American West Analytical Laboratories Current Utah Certification Basic Details Name American West Analytical Laboratories Type of Lab Commercial TNI Lab Code TNI01955 EPACode UT00031 State ID 8012638686 Website Extended Details Primary AB responsible for lab demographics Utah Department of Health GIS Location Description Comments Effective Date Commercial Samples Yes Active Yes Address 1 Type Location Company Contact Kyle Gross Address 1 463 West 3600 South Address 2 City Salt Lake City State Utah Zip 84115- Country US Phone 8012638686 Fax 8012638687 Email kyle@awal-labs.com DWMRC noted that the only analyte requested by EFR to be analyzed by GEL Laboratories was gross alpha (Gross Alpha Radium) and that GEL Laboratories holds current accreditation in Utah for that analyte method EPA 900.1 GFPC Modified. 6. Laboratory Report Turn Around Times: Per DWMRC review of EFR Table 1 (Summary of Well Sampling for Q4 2015) included in the 4th Qtr. 2015 Report, it was noted that laboratory report turnaround times (from date of EFR sample submission to the contract laboratory) for all monitoring was approximately 30 days on average. There is not a turnaround time requirement in the current QAP; therefore, current turnaround times are judgment based. DWMRC has raised concern over excessive laboratory turn-around times in the past and EFR 4th Quarter 2015 Groundwater Monitoring Report DWMRC Review Memo Page 9 the Director may require a tum-around date be included in the facility QAP if any future concerns regarding review of turnaround times are noted. Based on DWMRC review the tum-around times for the 4th Quarter 2015, data tum-around times and EFR data review timelines appear to be reasonable/appropriate. 7. Sample Holding Times: Per Table G-2A and Table G-2B of the Report, all method holding times were met for each analyte submitted for laboratory analysis. DWMRC staff cross checked all holding time requirements and verified that all samples/analytes appeared to be analyzed within holding times during the 4th Qtr. 2015 reporting period. EFR 4th Quarter 2015 Groundwater Monitoring Report DWMRC Review Memo Page 10 8. Sample Preservation: Per review of the 4th Quarter 2015 Report (Table G-3A and G-3B and Laboratory Check-in Sheets) it appears that all samples required to be chilled (<6° C) met the temperature preservation requirements. Per review of the laboratory check in sheets and laboratory QA/QC, no issues related to sample preservation were noted. 9. Laboratory OA/OC Flags - 4th Quarter 2015: QA/QC issues and DWMRC findings for the 4th Quarter 2015 are summarized below: Non-Conformance Summary Self- Identified? EFR Corrective Action Summary___________ DWMRC Findings Laboratory reporting limits were raised for various samples for parameters as listed on the laboratory data sheets. EFR states that the raised RL’s are due to sample dilution and qualifies the data in Table G-5A and G-5B based on all sample results being above the raised RL. The EFR QAP allows for raised RL’s if due to the need for dilution. DWMRC verified that in all cases when the RL was raised above the QAP required RL the sample result was higher in concentration. MW-18 and MW-36 - Gross Alpha Counting Error was not < 20% of the sample analysis result (sample activity). The sample result + the counting error was less than the GWCL and is therefore acceptable. EFR provides review of the counting errors in Table G-8A and G-8B. Per the QAP Part 9.1.4(b) “An error term may be greater than 20% of the reported activity concentration when the sum of the activity concentration and error term is less than or equal to the GWCL”________ Matrix Spike % recovery outside of range: MW-03 Magnesium, Silver, Ammonia, MW-36 Nitrate, MW-18 Sodium, Calcium, Magnesium, Ammonia, MW-02 Sodium, Calcium, Magnesium, Ammonia, None Per the QAP Part 8.1.2(a) matrix spikes are required but there are no requirements which would disqualify the laboratory data EFR 4th Quarter 2015 Groundwater Monitoring Report DWMRC Review Memo Page 11 Non-Conformance Summary Self- Identified? EFR Corrective Action Summary____________ DWMRC Findings MW-37 Sodium, Calcium, Magnesium, Ammonia Method blank detection above QAP Required RL - All below established acceptance limits for the 4tf Quarter 2015.___________ Y None - All recoveries were within laboratory established acceptance limits. No issues this quarter, typically any issues are validated by the laboratory. Laboratory Duplicate % Recovery Comparison - Various parameters out of range as listed on the laboratory QA/QC review sheets. Per AWAL Data Sheet: High RPD due to suspected sample non-homogeneity or matrix interference. Samples validated by the laboratory. Data was reported with a qualifier. Note: DWMRC reviewed the holding time summary chart; no exceedances of holding times were noted DWMRC reviewed the temperature check charts, all sample batches were received by the laboratory <6° C. 10.Review of Time-Concentration Plots The Permit Part I.F.l .g requires EFR to submit Time-Concentration Plots for each monitoring well for primary indicators of cell leakage (based on tailings cell concentrations and ground water partitioning and retardation coefficients); chloride, fluoride, sulfate and uranium. DWMRC notes that per the discussions with EFR, it was agreed to that EFR need not plot trend lines on the Time Concentration Plots and that all data is included on the plots (no data culled from the set). Per DWMRC review of the 4th Qtr. 2015 Report, the reviewed plots appear to be in conformance with the agreed upon changes, no issues were identified. 11. Review of Depth to Groundwater Measurements and Water Table Contour Maps Per DWMRC cross checks of groundwater elevation measurement calculations used for the 4th Quarter 2015, approximately 5% of wells cross checked, comparing surface measured elevations minus measured static levels with plotted elevations, no errors were noted. The upper wildlife ponds at the White Mesa Mill were taken offline (pond recharge from Recapture Reservoir discontinued) during the 4* Quarter 2011 in order to re-establish groundwater contours. Hydrographs of the upper wildlife pond ground water piezometers (Water Level Elevation vs. Time) are included below. It was also noted that the static water levels in several monitoring wells close to the upper wildlife ponds showed significant decrease in water levels during recent quarterly monitoring. These declines can be attributed to natural dissipation of the area ground water mound and/or ground water pumping activities related to corrective action of nitrate and chloroform contamination plumes (development of cone of depressions around pumping wells). EFR 4th Quarter 2015 Groundwater Monitoring Report DWMRC Review Memo Page 12 M M MUfc. !■ AM ■ * ■------------■ . ------------*------A II i A "-----■mt# MM M Vv|f9vyn^liva rMZOMIM^^ NO^n nWMIM 5519 uv t r-*6506 V6502 5,9 9S JrA 5.590 P* SK 6392 p-t ( sssa6378 5374 | -*~M -a-P-S -M-P-1 I *EB1 .jii IJC Whft* Mmb MB Hydrogn^tM: PtaoiaelMtQ&ouftrWIdMb Ponds =A5.544 6342 ?==5341 6340 ^\?C7tfc 53»J «.5* » sm Hi S.SM » S43S 5334 550 A-6532 6331 5530 5.529 6327 Nitrate and Chloroform Corrective Action Plan Pumping Wells: Ground water elevations are being impacted by effects from ground water pumping for the nitrate and chloroform contamination plume remediation. The following monitoring wells have been converted to active pumping wells: Nitrate Pumping Wells TW4-22, TW4-24, TW4-25, TWN-2 Chloroform Pumping Wells - MW-4, MW-26, TW4-19, TW4-20, TW4-4 The nitrate pumping project was initiated during January 2013 (TW4-22, TW4-24, TW4-25 and TWN-2). The chloroform pumping project was initiated during April 2003 utilizing two wells (Wells MW-4 and TW4-19). Monitoring well MW-26 was then converted to a pumping well during August 2003. Monitoring well TW4-20 was initiated as a pumping well during August 2005, and monitoring well TW4-4 was initiated as a pumping well during January 2010. The pumping wells for both the nitrate and chloroform projects are set up with a delay device wherein the wells purge for a set amount of time then shut off in order to let the well recharge. All pumping wells include a flow meter which records the volume of water pumped from the well in gallons. Quarterly nitrate and chloroform reports are prepared by EFR and include pump volumes and delineation of pump capture zones based on kriged water contours. The kriged water level maps included with the 4th Quarter 2015 Report include these areas which are directly southwest from the upper wildlife ponds. DWMRC expects that ground water elevation contours will continue to adjust in response to the pumping activities and discontinuance of recharge to the upper wildlife ponds. in. EFR February 11.2016 Notice Pursuant to the Permit Part I.G.l(a) The EFR February 11, 2016 Notice Pursuant to the Permit Part I.G.l(a) (“Notice”) discusses the status of monitoring wells and parameters in probable out-of-compliance (“POOC”) and out-of-compliance (“OOC”) status, as updated through the 4th Quarter 2015. DWMRC notes that the Notice was submitted timely regarding currently agreed upon schedules. The Notice summarizes wells/parameters with OOC status which have been resolved by either separate corrective actions plans or approved modified GWCL’s (pending inclusion in the renewal Permit). Two new wells/parameters with two consecutive exceedances were listed in the Notice: Monitoring Well MW- 11/manganese and Monitoring Well MW-26/ Nitrate + Nitrite and Chloroform. The Notice includes an explanation of the exceedances and for all cases describes conditions that don’t warrant the future submission of a 30-day plan and schedule to assess the source of the dual exceedances. Per DWMRC review, the EFR explanations appear appropriate. The Notice also lists three new monitoring wells with single parameter exceedance of GWCL’s during the 4th Quarter 2015 which are subject to requirements of the Permit Part I.G.1 requiring commencement of accelerated monitoring. These wells/parameters are: 1. Monitoring Well MW-3 0/Fluoride 2. Monitoring Well MW-3/Thallium 3. Monitoring Well MW-27/Field pH Per the Notice these wells parameters will be sampled on an accelerated monthly or quarterly monitoring frequency according to DWMRC/EFR agreed upon schedules. Based on DWMRC review of the Notice it appears that all requirements of the Permit were met. IV. EFR February 11.2016 Removal of Certain Groundwater Monitoring Parameters from Accelerated Monitoring Status Per the EFR February 11,2016 Request for Removal of Certain Groundwater Monitoring Parameters from Accelerated Monitoring Status (“EFR Request”), EFR requests that two monitoring well parameters be returned to baseline monitoring. Specifically, the EFR Request addresses the following wells/parameters be returned to baseline monitoring: • EFR 4th Quarter 2015 Groundwater Monitoring Report DWMRC Review Memo Page 13 • MW-25/Uranium • MW-03A/Nitrate + Nitrite and TDS EFR requests that these monitoring wells be returned to baseline monitoring based on eight consecutive sample results below the GWCL. Per past protocols regarding the return of monitoring well parameters to baseline monitoring, eight consecutive sample results below the GWCL have been acceptable to reduce the monitoring frequency. The EFR request includes a table summary which lists the applicable monitoring results for each well/parameter. The EFR request additionally includes analytical reports and field monitoring sheets for sample results which had not been provided to DRC at the time of the request. Per DRC cross check of the results it appears that eight or more consecutive results have been obtained for each of the wells/parameters. Therefore it is recommended that the wells/parameters be returned to baseline monitoring as summarized on the table below: EFR 4th Quarter 2015 Groundwater Monitoring Report DWMRC Review Memo Page 14 Monitoring Well Parameter Baseline Monitoring Frequency MW-25 Uranium Quarterly MW-3A Nitrate + Nitrite (as N) TDS Semi-Annually Semi-Annually The return to baseline monitoring for these wells/parameters will be included in a transmittal letter for Director Review and approval. V. EFR March 3.2016 Transmittal of Plan and Time Schedule under UGW370004 Part LG.4Cd) The EFR March 3,2016 Plan and Time Schedule (“EFR Plan”) addresses exceedances of the GWCLs for the following wells and parameters: Monitoring Well MW-18 MW-24 Parameter Sulfate Field pH Fluoride EFR Noted Findings • Statistically significant rising trend was identified in the Intera 2007 Existing Wells Background Report. • Indicator Parameters - Chloride and Uranium are exhibiting significantly rising trends, Fluoride is exhibiting a significantly decreasing trend. • MW-18 is a far upgradient well. A decreasing trend in field pH in MW-24 was identified in the Intera 2008 New Wells Background Report. Indicator Parameters - Chloride and Sulfate are not trending and uranium is exhibiting a decreasing trend. These wells/parameters are in out of compliance status per the Permit Part I.G.2 and are required to undergo corrective action per the Permit Part I.G.4. Per the EFR Plan and based on the EFR preliminary investigation of the parameters, noting that rising concentration trends were indicated in past background reports, EFR proposes to conduct statistical analysis of the groundwater data to determine if adjustment of the affected GWCLs is appropriate. Per the EFR Plan, a Source Assessment Report (SAR), which will include more specific source investigation and statistical analysis, will be submitted to the Director within 90 days after approval of the EFR Plan. Per DWMRC review of the EFR Plan, the outlined follow up actions appear to be appropriate. VI. Conclusions and Recommendations EFR 4th Quarter 2015 Groundwater Monitoring Report DWMRC Review Memo Page 15 Based on DWMRC staff review of the above listed documents, it was noted that the requirements of the Permit appear to have been met by EFR and the data collected during the 4th Quarter of 2015 appear to be reliable. It is recommended that a correspondence letter be sent to EFR with the following items: 1. Close-out regarding review of the EFR February 22, 2016,4th Quarter 2015 White Mesa Uranium Mill Groundwater Monitoring Report based on findings as summarized above. 2. Close-out regarding review of the EFR February 11, 2016 Notice. 3. Removal of Parameters from accelerated monitoring status per the EFR February 11,2016 request. 4. Approval of the EFR March 3,2016 Plan and Time Schedule. VII. References 1 Energy Fuels Resources (USA) Inc., February 22, 2016, 4th Quarter2015 Groundwater Monitoring Report, Groundwater Discharge Permit UGW370004, White Mesa Uranium Mill. 2 Energy Fuels Resources (USA) Inc., February 11, 2016, State of Utah Ground Water Discharge Permit No. UGW370004 White Mesa Uranium Mill-Notice Pursuant to Part J.G. 1(a). 3 Energy Fuels Resources (USA) Inc., February 11,2016, State of Utah Ground Water Discharge Permit No. UGW370004 White Mesa Uranium Mill - Removal of Certain Groundwater Monitoring Parameters from Accelerated Monitoring Staus. 4 EnergyFuels Resources (USA) Inc., March 3,2016 Transmittal of Plan and Time Schedule under Utah Ground Water Discharge Permit UGW370004 Part I.G.4(d) White Mesa Mill 5 Energy Fuels Resources (USA) Inc., June 6,2012, White Mesa Uranium Mill Ground Water Monitoring Quality Assurance Plan (QAP), Revision 7.2. 6INTERA Incorporated, 2007, Revised Background Groundwater Quality Report: Existing Wells for Dension Mines (USA) Corp. ’s White Mesa Uranium Mill Site, San Juan County, Utah. 7 INTERA Incorporated, 2008, Background Groundwater Quality Report: New Wells for Denison Mines (USA) Corp. ’s White Mesa Uranium Mill Site, San Juan County, Utah. 8 Hurst, T.G., and Solomon, D.K., 2008. Summary of Work Completed, Data Results, Interpretations and Recommendations for the July 2007 Sampling Event at the Denison Mines, USA, White Mesa Uranium Mill located near Blanding Utah. Prepared by University of Utah Department of Geology and Geophysics. 9 Utah Department of Environmental Quality, August 24, 2012, Utah Ground Water Discharge Permit, Permit No. UGW370004 issued for the Energy Fuels Resources (USA) Inc. White Mesa Uranium Mill. EFR 4th Quarter 2015 Groundwater Monitoring Report DWMRC Review Memo Page 16