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HomeMy WebLinkAboutDRC-2016-008526 - 0901a0688064ca70State of Utah GARY R. HERBERT Governor SPENCER J. COX Lieutenant Governor Department of Environmental Quality Alan Matheson Executive Director DIVISION OF WASTE MANAGEMENT AND RADIATION CONTROL Scott T. Anderson Director MEMORANDUM TO: File THROUGH: FROM: DATE: SUBJECT: Phil Goble, Manager Tom Rushing, P.G. July 12,2016 Review of the May 16, 2016 Energy Fuels Resources (USA) Inc. 1st Quarter 2016 Ground Water Monitoring Report for the White Mesa Uranium Mill Review Summary: 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, May 16, 2016, Transmittal of T' Quarter 2016 Groundwater Monitoring Report Groundwater Quality Discharge Permit UGW370004 White Mesa Uranium Mill. 2. EFR, May 2,2016, State of Utah Ground Water Discharge Permit No. UGW3 70004 White Mesa Uranium Mill - Notice Pursuant to Part LG. 1(a). 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. 1. Checklist of Significant Findings of the 1st Otr. 2016 Report and Related Actions at the White Mesa Uranium Mill: 1. The 1st Quarter 2016 Report was received on May 18, 2016, which was before the due date (Permit Part I.F.l - due date of June 1,2016). 2. 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 EEC, Charleston, South Carolina. DWMRC verified that the laboratories have current Utah certification for all parameters/methods used. No deviations/violations of the currently approved Quality Assurance Plan for the White Mesa Uranium Mill were noted. 3. 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 1st Quarter 2016 Report recognizes the telephone agreements 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 regarding timelines for EFR to submit compliance notices. The modification request is currently being addressed through the Permit renewal process. 4. 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 1st Quarter 2016 Report is based on current Permit GWCL’s, modified GWCLs are required to undergo public notice requirements per the Utah Administrative Code and listed in an active Permit. 5. 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 1st Quarter 2016 Report data results were compared with the interim limits or groundwater quality standards as listed in the currently active Permit. 6. 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. 7. Two compliance parameters went into accelerated monitoring frequency during the monitoring period (U and Cd in Monitoring Well MW-25), as discussed below. 8. Monitoring well MW-3 groundwater concentrations were noted to be variable during the 1st Quarter 2016 for some metals. Specifically a marked decrease in concentrations for selenium and cadmium and a significant rise in concentration for zinc. These concentration fluctuations are likely due to efforts to isolate a section of blank casing below the monitoring well screened interval. It is likely that zinc concentrations are due to contamination from the installed well packer. 9. EFR self-reported an issue with the March 2, 2016 result for the fluoride reporting limit in monitoring well MW-30. In this accelerated sample the reporting limit was raised to 10 mg/L (100 times dilution) which is above the GWCL, however the result was reported as <10 mg/L which is not in conformance with the facility QAP. DWMRC also noted that the raised reporting limit was noted on the accelerated monitoring sample reporting limit check table in the Report (Table G-5B) and was listed as an “error.” Since the violation was minor and was self-reported by phone and clearly listed in the Report, enforcement action will not be pursued. 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.l). 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). EFR 1st Quarter 2016 Groundwater Monitoring Report DWMRC Review Memo Page 2 EFR 1st Quarter 2016 Groundwater Monitoring Report DWMRC Review Memo Page 3 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 any instances of EFR failure to meet the current time and schedule submission requirements stated in the Permit. 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 February 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 4'h Quarter 2010 February 2013 Uranium 1st Quarter 2016 April 2016 Chloride 1st Quarter 2013 June 2013 Cadmium 1st Quarter 2016 April 2016 EFR 1st Quarter 2016 Groundwater Monitoring Report DWMRC Review Memo Page 4 Well Class *Position Parameter Date of First Date Accelerated Exceedance of Monitoring First GWCL Required Field pH February 2010 May 2010 Nitrate + Nitrite (as N)February 2010 May 2010 MW-26(a)Class III water C-2 Chloroform Uranium February 2010 February 2010 May 2010 May 2010 Chloride February 2010 May 2010 Dichloromethane April 2010 June 2010 Nitrate + Nitrite (as N)February 2010 May 2010 Chloride 1st Quarter 2011 May 2011 Selenium April 2010 July 2010 MW-30 Class II water D-2 Uranium 4th Quarter 2011 March 2014 Field pH 4th Quarter 2014 March 2015 Ammonia 4th Quarter 2014 March 2015 Fluoride 4th Quarter 2015 March 2016 Nitrate + Nitrite (as N)February 2010 May 2010 Chloride 1st Quarter 2011 May 2011 MW-31 Class III water D-2 Sulfate TDS 4th Quarter 2010 September 2010 March 2011 January 2011 Selenium 3 rd Quarter 2012 December 2012 Field pH February 2014 June 2014 Uranium 2nd Quarter 2011 July 2011 Manganese 2nd Quarter 2011 July 2011 MW-35 Class II C-4B Thallium Adjusted Gross Alpha 3rd Quarter 2011 3rd Quarter 2011 July 2011 October 2011 Selenium 3 rd Quarter 2012 December 2012 Field pH July 2011 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 Date Accelerated Exceedance of Monitoring First GWCL Required Field pH 3rd Quarter 2014 1st Quarter 2015 MW-1 Class II water U-l Sulfate 4th Quarter 2012 1st Quarter 2013 Chloride 2nd Quarter 2015 1st Quarter 2016 Selenium 2nd Quarter 2010 3rd Quarter 2010 Field pH 2nd Quarter 2010 3rd Quarter 2010 Fluoride 2nd Quarter 2010 3rd Quarter 2010 Nitrate + Nitrite (as N)4th Quarter 2013 2nd Quarter 2014 MW-3 Class III water D-4A Sulfate 4th Quarter 2013 2nd Quarter 2014 Zinc 2nd Quarter 2015 1st Quarter 2016 Thallium 4th Quarter 2015 3rd Quarter 2016 Cadmium 2nd Quarter 2015 1st Quarter 2016 Beryllium 2nd Quarter 2015 1st Quarter 2016 MW-3A Class III water D-4A Field pH 2nd Quarter 2010 3rd Quarter 2010 \ EFR 1st Quarter 2016 Groundwater Monitoring Report DWMRC Review Memo Page 5 Well Class • *Position Parameter Date of First Exceedance of GWCL Date Accelerated Monitoring First Required Sulfate TDS Selenium Nitrate + Nitrate (as N) 2nd Quarter 2010 2nd Quarter 2010 4th Quarter 2010 4th Quarter 2012 3rd Quarter 2010 3rd Quarter 2010 lst Quarter 2011 1st Quarter 2013 MW-5 Class II water D-3 Uranium 4th Quarter 2010 1st Quarter 2011 MW-12 Class III water D-3 Field pH Selenium 1st Quarter 2014 4th Quarter 2014 2nd Quarter 2014 2nd Quarter 2015 MW-15 Class III water D-4A Selenium Field pH 2nd Quarter 2012 4lh Quarter 2013 3rd Quarter 2012 2nd Quarter 2014 MW-18 Class III water U-l Thallium Sulfate TDS Field pH 2nd Quarter 2010 2nd Quarter 2010 2nd Quarter 2010 1st Quarter 2014 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 2nd Quarter 2010 4th Quarter 2011 3rd Quarter 2010 1st Quarter 2012 MW-24 Class III water D-l Cadmium Thallium Field pH Fluoride Sulfate 2nd 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 MW-27 Class III water U-l Nitrate + Nitrite (as N) Adjusted Gross Alpha TDS Chloride Sulfate Field pH 2nd Quarter 2010 4th Quarter 2010 1st Quarter 2010 1st Quarter 2010 2nd Quarter 2013 4th Quarter 2015 3rd Quarter 2010 4th Quarter 2014 3rd Quarter 2010 3rd Quarter 2010 1st Quarter 2014 3rd Quarter 2016 ' MW-28 Class III water D-l Field pH Chloride Cadmium Uranium Vanadium 1st Quarter 2014 2nd Quarter 2010 2nd Quarter 2014 2nd Quarter 2014 2nd Quarter 2014 2nd Quarter 2014 3rd Quarter 2010 2nd Quarter 2014 2nd Quarter 2014 2nd Quarter 2014 MW-29 Class III water D-2 Field pH TDS Sulfate 4th Quarter 2010 2nd Quarter 2012 2nd Quarter 2015 2nd Quarter 2011 3 rd Quarter 2012 1st Quarter 2016 MW-32 Class III water C-2 Adjusted Gross Alpha Field pH Chloride 2nd Quarter 2010 2nd Quarter 2010 1st Quarter 2015 3rd Quarter 2010 3rd Quarter 2010 2nd Quarter 2014 * 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 first quarter of 2016. EFR is required to notify the DWMRC on a quarterly basis regarding wells and parameters which went into accelerated monitoring during the period [Part LG. 1(a), Accelerated Monitoring Status Reports (AMSR)]. For the 1st quarter 2016 monitoring, the AMSR and follow up Plan and Time Schedule [Required by the Permit Part I.G.4(d)] was received, dated May 2, 2016 (received by DWMRC on May 4, 2016). Two parameters with new exceedances were noted per review of the AMSR: MW-25 was accelerated from Quarterly to monthly based on 1st Quarter 2016 exceedance of the Uranium and Cadmium GWCL’s. DWMRC notes that these parameters at monitoring well MW-25 were recently returned to baseline monitoring (based on eight consecutive measurements below the GWCL’s) but were slightly above the GWCL’s during the 1st Quarter of 2016 for a single monitoring result and therefore resumed accelerated monitoring. EFR 1st Quarter 2016 Groundwater Monitoring Report DWMRC Review Memo Page 6 3. Monitoring Wells Purged for Two Casine 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: 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 1st Quarter 2016 (including accelerated samples). Purge methods and volumes are summarized on Table G-1A of the l5' Quarter 2016 Monitoring Report: I Quarter 1| # Purged 2 Casing Volumes || # Purged to Dryness 1 # Purged 3 Casing Volumes 1 Is1 Qtr. 2016 30 3 3 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 1st 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 1st Quarter of 201 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. 4. Relative Percentage Difference Calculations and Radioloeical Comparisons for Blind Duplicate Analysis: DWMRC conducted a review of the blind duplicate samples collected during the lsl Quarter 2016. 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-36/MW-65 on 2-11-16 and MW-14/MW-70 on 2-15-16) and two with the accelerated samples (MW-30/MW-65 on 1-20-16 and MW-35/MW-65 on 3-2-16). 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 1st Qtr. 2016 sampling event all sample results conform to the Permit requirements (within 20% RPD) with the exception of Ammonia as N duplicate MW-36/MW-65 for the February 11, 2016 sample. Regarding the Ammonia as N duplicate MW-36/MW-65 for the February 11, 2016 sample, EFR provides the following explanation in the 1st 2016 Report, “Both of the ammonia sample results reported for MW- 30/MW-65 were not five times greater than the reporting limits of 0.05 and as such the deviation from the 20% RPD requirement is acceptable.” The White Mesa Quality Assurance Plan, Section 9.1.4.a states, “RPD’s will be calculated in comparison of duplicate and original field sample results. Non-conformance will exist when the RPD >20% unless the measured concentrations are less than 5 times the required EFR 1st Quarter 2016 Groundwater Monitoring Report DWMRC Review Memo Page 7 detection limit (Standard Methods, 1998).” Therefore, the ammonia results and comparisons are within the requirements of the Quality Assurance Plan. 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 1st Quarter, 2016. 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 EPACode 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 ibw@gel.com American West Analytical Laboratories Current Utah Certification Basic Details Name American West Analytical Laboratories Type of Lab Commercial EFR 1st Quarter 2016 Groundwater Monitoring Report DWMRC Review Memo Page 8 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 included in the Is' Qtr. 2016 Report, it was noted that laboratory report turnaround times (from date of EFR sample submission to the contract laboratory) for normal frequency monitoring was less than 30 days for all samples (not including re-submission/corrected reports). Per DWMRC review it was noted that EFR acted quickly to identify any deficiencies in the reports and request corrected versions. 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 the Director may require a turn-around date be included in the facility QAP if any future concerns regarding analysis turnaround times are noted. Based on DWMRC review the turn-around times for the 1st Quarter 2016, data turn-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 EFR 1st Quarter 2016 Groundwater Monitoring Report DWMRC Review Memo Page 9 that all samples/analytes appeared to be analyzed within holding times during the 1st Qtr. 2016 reporting period. EFR 1st Quarter 2016 Groundwater Monitoring Report DWMRC Review Memo Page 10 8. Sample Preservation: Per review of the 1st Quarter 2016 Report (Table G-3A 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 - 1st Quarter 2016: QA/QC issues and DWMRC findings for the 1st Quarter 2016 are summarized below: Non-Conformance Summary Self- Identified? EFR Corrective Action Summary DWMRC Findings Laboratory reporting limits were raised for various samples for analysis of Ca, Cl, K, Na, S04, Mg, Zn,TDS, and, Nitrate/Nitrite (as N). Y EFR states that the raised RL’s are due to sample dilution and qualifies the data in Table G 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-31,MW-35-Gross Alpha Counting Error was not < 20% of the sample analysis result (sample activity). Y The sample result + the counting errors were less than the GWCL in all cases and are therefore acceptable. 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- 11 Ammonia, MW-32 Gross Alpha, MW-37 Nitrate, MW-37 Tetrahydrofuran MW-37 Gross Alpha, MW- 65 Ammonia, MW-30 Ammonia. Y None Per the QAP Part 8.1.2(a) matrix spikes are required but there are no requirements which would disqualify the laboratory data. Laboratory Duplicate % Recovery Comparison Outside of Range MW-32 Gross Alpha. Y Per AWAL Data Sheet: High RPD due to suspected sample non-homogeneity or matrix interference Data was reported with a qualifier. Note: DWMRC reviewed the holding time summary chart; no exceedances of ho ding 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. 1 .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 1st Qtr. 2016 Report, the reviewed plots appear to be in conformance with the agreed upon changes, no issues were identified. EFR 1st Quarter 2016 Groundwater Monitoring Report DWMRC Review Memo Page 11 11. Review of Depth to Groundwater Measurements and Water Table Contour Maps Per DWMRC cross checks of groundwater elevation measurement calculations used for the 1st Quarter 2016, 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 4th 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). tUC Whit* M*u Mill Hydrograph*: Pkzometer* © North Wltdlit* Pond* [ P-2 -----P-3 -0-B-1 EFR 1st Quarter 2016 Groundwater Monitoring Report DWMRC Review Memo Page 12 JUC Wftte imm urn Hydroflnpn*. Ptozomcttn C Soutft wudirt* Poo<J» SM iMS 5^** 5343 El 3I 1542 5X1 9.54a SAX 55U 5X7 5 534 5X5 5534 5553 5X2 5»1 5X3 S&» 5X4 S.52T 5X4 5,525 5-I 5 --------V." ■» »■«; 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 1st 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. 12, EFR May 2,2016 Notice Pursuant to the Permit Part LG.l(a) The EFR May 2,2016 Notice Pursuant to the Permit Part I. G. 1 (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 1st Quarter 2015. DWMRC notes that the Notice was submitted timely regarding currently agreed upon schedules. EFR 1st Quarter 2016 Groundwater Monitoring Report DWMRC Review Memo Page 13 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). The Notice also lists two monitoring well/parameter (MW-25 Cadmium and MW-25 Uranium) which went into OOC status during the 1st Quarter 2016. The Notice notes “EFRI requested removal of these constituents from accelerated monitoring by letters dated November 18, 2015 and February 11, 2016. DWMRC approved the removal of these constituents from monthly accelerated monitoring by letters dated February 25, 2016 and March 30, 2016... Accelerated monthly monitoring of these constituents has continued uninterrupted and will continue. ” DRC notes that the samples were only very slightly above the GWCL’s in the 1st Qtr. 2016 sample and that no upward trend in concentrations is indicated. Based on DWMRC review of the Notice it appears that all requirements of the Permit were met. 13. Conclusions and Recommendations 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 1st Quarter of 2016 appears to be reliable. It is recommended that a correspondence letter be sent to EFR with the following items: 1. Close-out regarding DWMRC review of the EFR May 16, 2016, 1st Quarter 2016 White Mesa Uranium Mill Groundwater Monitoring Report based on findings as summarized above. 2. Close-out regarding DWMRC review of the EFR May 2, 2016 Notice. 14. References 1 Energy Fuels Resources (USA) Inc., May 16, 2016, f Quarter2016 Groundwater Monitoring Report, Groundwater Discharge Permit UGW370004, White Mesa Uranium Mill. 2 Energy Fuels Resources (USA) Inc., May 2, 2016, State of Utah Ground Water Discharge Permit No. UGW370004 White Mesa Uranium Mill - Notice Pursuant to Part I.G. 1(a). 3 Energy Fuels Resources (USA) Inc., June 6, 2012, White Mesa Uranium Mill Ground Water Monitoring Quality Assurance Plan (QAP), Revision 7.2. 4INTERA Incorporated, 2007, Revised Background Groundwater Quality Report: Existing Wells for Dension Mines (USA) Corp. ’s White Mesa Uranium Mill Site, San Juan County, Utah. 5 INTERA Incorporated, 2007, Background Groundwater Quality Report: New Wells for Denison Mines (USA) Corp. ’s White Mesa Uranium Mill Site, San Juan County, Utah. 6 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. 7 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 1st Quarter 2016 Groundwater Monitoring Report DWMRC Review Memo Page 14