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HomeMy WebLinkAboutDRC-2013-001149 - 0901a0688034558aState of Utah GARYR HERBERT Governor GREG BELL Lieutenant Governor Department of Environmental Quality Amanda Smith Executive Director DIVISION OF RADL\TI0N CONTROL Rusty Lundberg Director DRC-2OI3-001I49 MEMORANDUM TO THROUGH FROM DATE SUBJECT File Phil Goble, Compliance Section Manager Tom Rushing, PG I'B^^P January 28, 2013 Review of the 2"'^ Quarter, 2012 (dated August 29,2012), and 3''* Quarter, 2012 (dated November 26,2012) Groundwater Monitonng Reports, Groundwater Discharge Permit UGW370004 - Energy Fuels Resources (USA) Inc , White Mesa Uranium Mill, Blandmg, Utah This is a summary of DRC staff review of the Energy Fuels Resources (USA) Lie (EFR) groundwater monitonng reports for the 2"'* Quarter 2012 (Apnl - June) dated August 29,2012 (received by DRC on August 30, 2012) and the 3''* Quarter 2012 (July - September) dated November 26, 2012 (received by DRC on November 27,2012) The review included all sampling events and accelerated monitonng dunng those quarters, as well as EFR Exceedence Nobces and Plan and Time Schedule documents (wntten notificabon for momtonng exceedences) for the penods, as follows 1 July 27,2012, EFR Notice Pursuant to Part IG 1(a) second quarter ("Q2") groundwater monitonng, 2 November 15, 2012, EFR Notice Pursuant to Part IG 1(a) third quarter ("Q3") groundwater monitonng, and, 3 December 13, 2012 Transmittal of Plan and Time Schedule under Utah Ground Water Discharge Permit UGW370004 Part IG 4(d) White Mesa Mill, Relevant to Q3 violabons of Part IG 2 of the Permit 1. Checklist of Significant Findings and Associated Actions at the White Mesa Uranium Mill 1 The subject Monitonng Reports were received by their respective due dates, September 1, 2012, and December 1, 2012, respectively 2 EFR proposes to prepare a Source Assessment Report (SAR) for Du-ector Review withm 90 days of Director approval of the 12/13/13 Plan and Time Schedule to address out-of- compliance for TDS at momtonng well MW-29 Conditional approval by the Director is recommended as discussed in the memo below 3 A May 25,2012 EFR Permit modification request was made in order to document accelerated reporting and monitonng agreements made dunng a teleconference with the Utah Division of Radiation Conti-ol (DRC) Per DRC staff discussions The May 25, EFR White Mesa U-Mill 2"*^ and 3'** Qti^ Groundwater Momtonng Reports DRC Review Memo Page 2 of 16 2012 request will be included with the White Mesa Mill Ground Water Permit Renewal (Currently in the application review process) 4 The EFR source assessment report for previously documented out-of-compliance parameters (multiple parameters), required per Stipulated Consent Agreement, Docket No UGW 12-03 was submitted to DRC, dated October 10,2012, and is currently under DRC review 5 The EFR pH report, which evaluates monitonng wells out-of-compliance for pH, required per Stipulated Consent Agreement, Docket No UGW 12-03 was submitted to DRC, dated November 9,2012 and is currently under DRC review 6 The EFR pynte investigation report, required per Stipulated Consent Agreement, Docket No UGW12-03 was submitted to DRC, dated December 7, 2012 and is currently under DRC review 7 Two issues for advisory were noted by DRC dunng review of the field sheets for groundwater monitonng dunng the review penod 1 Averages of field readings were not recorded on the field sheet for momtonng well MW-14 dunng the 4/12/12 sampling, and, 2 "Final depth" recorded on the field sheet for monitonng well MW-24 dunng the 7/17/12 sampling was greater than the total design well depth 8 DRC noted that several groundwater samples were collected with a field turbidity measurement greater than 5 NTU Per the current approved White Mesa Mill Quality Assurance Plan Rev 7 2 (QAP) it is not required that the readings be below 5 NTU Also, per DRC review of an EFR Well Development Report (dated September 30, 2011) DRC staff found that turbidity greater than 5 NTU would not affect laboratory analysis of the samples or quality of the sample results 9 Samples for the volatile organic compounds (VOCs) exceeded the QAP required sample holding time for monitonng well MW-26 for the September 2012 accelerated momtonng penod Monthly accelerated samples for chloroform and dichloromethane were invalid for September 2012 10 EFR failed to collect a monthly accelerated sample for chloroform and dichloromethane at well MW-26 durmg July, 2012 EFR states that the parameter had to be resampled due to "poor agreement" between the MW-26 sample and the blind duplicate MW-65 sample but the resample was not conducted until the following month 11 Several laboratory QA/QC flags were documented on the review penod analytical data reports fi-om the contract laboratones Per DRC review it appears that all discrepancies were self-reported by EFR and that none of the discrepancies are violations of Permit or QAP 2. Accelerated Monitoring and POC Wells Exceeding GWCL When a monitonng well has a pollutant that exceeds a Ground Water Compliance Limit (GWCL) set forth m 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 IG 1) When monitonng 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 IG 2) In the event a constituent is m OOC status, EFR is required to prepare and submit within 30 calendar days to the Director a plan and a 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 EFR White Mesa U-Mill 2"*^ and 3^'^ Qtr Groundwater Momtonng Reports DRC Review Memo Page 3 of 16 quality to insure that Permit limits will not be exceeded at the compliance monitonng pomt and that DMT or BAT will l?e reestablished, in accordance with Part IG 4(c) of the Permit The DRC 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 monitonng at well MW-3 5 EFR stated in a March 26,2012 response to the NOED that based on an agreement made between DRC and EFR dunng a telephone conference call on Apnl 5, 2010, EFR is not required to implement accelerated monitonng until ^'the month following the submission of the Exceedence Notice for a specified quarter " Based on DRC review of notes taken durmg the Apnl 5, 2010 telephone conference (Loren Morton 4/5/10,0900), EFR verbally requested to wait until the end of the quarter to send in the notice of out-of compliance status - but withm 30 days of the last lab report that EFR receives for the quarterly monitonng event DRC notified EFR by letter (dated Apnl 16, 2012) that in order to formalize the Apnl 5,2010 discussion items related to out-of-compliance reporting and sampling, a wntten request for a groundwater permit modification (groundwater permit, out-of-compliance notification and accelerated monitonng requirements) is required for Director review and approval EFR submitted a May 25,2012 wntten request for a Permit modification, includmg redline copies of pertinent pages of the Permit to reflect the agreements made dunng the Apnl 5,2010 conference call The Permit modification request is currently under DRC review and is pending modification In the intenm, DRC is hononng the teleconference agreements and is not pursumg Permit enforcement based on EFR failure to meet the current time and schedule submission requirements In the tables listed below are monitonng wells with parameters currently in accelerated OOC or POOC status Table 1 - Wells Monitored Quarterly Accelerated to Monthly Monitoring Well Class •Position Parameter Date of First Exceedance of GWCL Date Accelerated Monitonng First Required MW-11 Class n water D-3 Manganese February 2010 May 2010 MW-14 Class III water D-4A Field pH Manganese February 2010 2"** Quarter 2012 May 2010 August 2012 MW-25 Class III water C-3 Field pH Uranium 4"" Quarter 2010 September 2010 January 2011 January 2011 MW-26^'^ Class in water C-2 Field pH Niti-ate -1- Nitiite (as N) Chloroform Uranium Chlonde Dichloromethane TDS February 2010 February 2010 February 2010 February 2010 February 2010 Apnl 2010 September 2010 May 2010 May 2010 May 2010 May 2010 May 2010 June 2010 January 2011 MW-30 Class n water D-2 Niti-ate + Nitiite (as N) Chlonde Selenium Uranium February 2010 Quarter 2011 Apnl 2010 4* Quarter 2011 May 2010 May 2011 July 2010 March 2012 EFR White Mesa U-Mill 2"** and 3'^ Qtr Groundwater Momtonng Reports DRC Review Memo Page 4 of 16 Well Class •Position Parameter Date of Fnst Exceedance of GWCL Date Accelerated Monitonng First Required Field pH 2"''Qti 2011 July 2011 MW-31 Class in water D-2 Nitiate + Nitiite (as N) Chlonde Sulfate TDS Field pH Selenium February 2010 Quarter 2011 4* Quarter 2010 September 2010 2nd Quarter 2011 3'^ Quarter 2012 May 2010 Apnl 2011 January 2011 January 2011 July 2011 December 2012 MW-35 Class n C-4B Uranium Manganese Thallium Adjusted Gross Alpha Selenium 2nd Quarter 2011 2nd Quarter 2011 3'^ Quarter 2011 3'^ Quarter 2011 3'** Quarter 2012 July 2011 July 2011 October 2011 October 2011 December 2012 D = Down-gradient, U = Up-gradient, C = Cross-gradient, 1,2,3,4A = Cell # a = Monitonng 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 Monitonng First Required MW-2 Class ni water C-3 Adjusted Gross Alpha 4"^ Quarter 2010 Quarter 2011 MW-3 Class in water D-4A Selenium Field pH Fluonde 2"''Quarter 2010 2°'* Quarter 2010 2"'* Quarter 2010 3'" Quarter 2010 3''* Quarter 2010 3'** Quarter 2010 MW-3A Class in water D-4A Field pH Sulfate TDS Selenium 2"" Quarter 2010 2"** Quarter 2010 2*"* Quarter 2010 4* Quarter 2010 3'''Quarter 2010 3"* Quarter 2010 3'*^ Quarter 2010 Quarter 2011 MW-5 Class n water D-3 Uranium 4"^ Quarter 2010 Quarter 2011 MW-12 Class in water D-3 Field pH Selenium 4"" Quarter 2010 2°^ Quarter 2010 Quarter 2011 3"* Quarter 2010 MW-15 Class in water D-4A Iron Selenium 4"" Quarter 2011 2"^* Quarter 2012 V Quarter 2012 3'^ Quarter 2012 MW-18 Class in water U-1 Thallium Field pH Sulfate TDS Quarter 2010 2"^^ Quarter 2010 2"^^ Quarter 2010 2"''Quarter 2010 2"''Quarter 2010 3'*^ Quarter 2010 3"^ Quarter 2010 3"^ Quarter 2010 MW-19 Class ni water U-1 Field pH Nitiate + Nitnte as N 2"'* Quarter 2010 4* Quarter 2011 3'" Quarter 2010 1''Quarter 2012 MW-23 Class in water D-3 Field pH Manganese 2"''Quarter 2010 4* Quarter 2011 3"* Quarter 2010 Quarter 2012 MW-24 Class in water D-1 Cadmium Thallium Field pH 2"''Quarter 2010 2°'* Quarter 2010 2°^* Quarter 2010 3'^ Quarter 2010 3"" Quarter 2010 3'^^ Quarter 2010 MW-27 Class in water U-1 Nitiate + Nitiite (as N) 2°'* Quarter 2010 3"* Quarter 2010 EFR White Mesa U-Mill 2"*^ and 3''^ Qti" Groundwater Momtonng Reports DRC Review Memo Page 5 of16 Well Class •Position Parameter Date of First Exceedance of GWCL Date Accelerated Monitonng First Required Adjusted Gross Alpha Sulfate TDS Chlonde Field pH 4"^ Quarter 2010 2"^* Quarter 2010 Quarter 2010 Quarter 2010 3'^ Quarter 2011 V Quarter 2011 3'^* Quarter 2010 2"'' Quarter 2010 2"''Quarter 2010 4* Quarter 2011 MW-28 Class in water D-1 Field pH Chlonde Manganese 2"'* Quarter 2010 2"^* Quarter 2010 2'^''Quarter 2012 OJ O J O J a a a SS S q q q to t o t o oo o to o o MW-29 Class ni water D-2 Field pH Iron Manganese TDS 4"^ Quarter 2010 2"^* Quarter 2011 2"^* Quarter 2012 2"'*Quartr2012 Quarter 2011 3"* Quarter 2011 3'^* Quarter 2012 3"* Quarter 2012 MW-32 Class in water C-2 Adjusted Gross Alpha Field pH 2°'Quarter 2010 2""* Quarter 2010 3'''Quarter 2010 3"* Quarter 2010 * D = Down-gradient, U = Up-gradient, C = Cross-gradient, 1, 2, 3, 4A = Cell # Table 1 above is a comprehensive list of all Groundwater Monitonng Wells in Accelerated Status EFR is required to notify the DRC on a quarterly basis regarding wells and parameters which went into accelerated monitonng durmg the penod [Part IG 1(a), [Accelerated Monitoring Status Reports (AMSR)] For the two quarters of monitonng reviewed, the reports have been received as follows 1 AMSR received for the 2"^* Quarter Report, dated July 27,2012 and received by DRC on July 30, 2012 2 AMSR received for the 3rd Quarter Report, dated November 15,2012 and received by DRC on November 16, 2012 Note that DRC review of the report completeness and agreed upon investigations and actions between DRC and EFR regarding parameters/wells currently in OOC status, including dates of agreements and documents are detailed m section 6 below EFR and the Director entered into a Stipulated Consent Agreement, specifying corrective actions for the OOC parameters, based upon agreed upon study objectives and activities Based upon language in the subject AMSR's as agreements between DRC and EFR, current parameters which are under re-evaluation according to the agreed upon actions are included in the Stipulated Consent Agreement and do not require specific corrective actions to be listed in the AMSR with the exception of TDS in Well MW-29 One new OOC well/parameter is noted for the reviewed reports. Well MW-29 TDS EFR has requested that the Director approve m the Plan and Time Schedule study submitted by EFR on December 13,2012 (Plan and Time Schedule to investigate the OOC status), and received by DRC on December 14, 2012 This Item is discussed m section 5 of this memo below 3. FaUure to Collect Required Ground Water Samples at Well MW-26 during the 3"* Quarter 2012 The following failures to collect compliance groundwater samples were noted by DRC dunng review of the 3"* Quarter 2012 Report as follows EFR White Mesa U-Mill 2"*^ and 3''' Qtr Groundwater Momtonng Reports DRC Review Memo Page 6 of 16 1 Samples for the volatile organic compounds (VOCs) exceeded the QAP required sample holding time for momtonng well MW-26 for the September 2012 accelerated momtonng penod Therefore, monthly accelerated samples for chloroform and dichloromethane were invalid for September 2012 Violation of Ground Water Discharge Permit No UGW370004 Part IG 1 b and Part IG 4 b 2 EFR failed to collect a monthly accelerated sample for chloroform and dichloromethane at well MW-26 dunng July, 2012 EFR states that the parameter had to be resampled due to "poor agreement" between the MW-26 sample and the blind duplicate MW-65 sample, however, the resample was not collected dunng the required month Violation of Ground Water Discharge Permit No UGW370004 Part IG 1 b and Part IG 4 b These issues were also identified by EFR and included in the 3"* Qti Report narrative Causes of the violations, as per EFR, for each of the violations was as follows Violation 1 - This violation is discussed in section 4 0 of the 3"* Qti Report, per the Report the "deviation was due to laboratory error EFR was not informed by the laboratory of the holding time issue until October 12, 2012 which prevented resampling of the September monthly compliance sample " EFR notes that laboratory had "more than sufficient time" to analyze the sample within the required holding time and determines that the corrective action will be to change contiact laboratones • DRC notes that EFR has included results for VOCs at well MW-26 for the September, 2012 event on the monitonng data tables, even though they were analyzed outside of required holding time DRC will request that the data be removed from the tables since it is invalid Violations 2 and 3 - These violations are discussed in section 2 1 1 of the 3'^ Qti Report EFR states ''''MW-26 and MW-65 (duplicate of MW-26) were resampledfor volatile organic compounds ("VOCs ") due to a laboratory issue which resulted in poor agreement between the sample (MW-26) and the duplicate (MW-26) • DRC notes that EFR does not identify violations 2 and 3 (as violations) and does not mclude corrective action with the 3"* Qti 2012 Report 4. Summarv of July 27,2012,2°" Quarter 2012 Data Results AMSR: New Accelerated Well or Start OOC Status and Parameter: Semi-Annual Baseline to Quarterly Accelerated: MW-15 - Selenium MW-28 - Manganese MW-29 - Manganese MW-29-TDS Semi-Annual Wells with Two Successive Exceedances beginning Q2 (Out of Compliance) None EFR White Mesa U-Mill 2"*^ and 3''^ Qti* Groundwater Momtonng Reports DRC Review Memo Page 7 of 16 Quarterly Baseline to Monthly Accelerated: MW-14 - Manganese Quarterly Wells with Two Successive Exceedances beginning Q2 (Out of Compliance) None 5. Summarv of November 15, 2012,3'^'' Quarter 2012 Data Results AMSR: New Accelerated Well or Start OOC Status and Parameter: Semi-Annual Baseline to Quarterly Accelerated: None Semi-Annual Wells with Two Successive Exceedances beginning QI (Out of Compliance) MW-29 - TDS Quarterly Baseline to Monthly Accelerated: MW-31 - Selenium Quarterly Wells with Two Successive Exceedances beginning QI (Out of Compliance) None Based on DRC review of the monitonng accelerations and OOC status, and with consideration of the May 25,2012 EFR Permit modification request, it appears that EFR has appropnately identified momtonng exceedances as well as required follow up actions / The December 13,2012 EFR Plan and Time Schedule document for 2 consecutive (OOC) exceedances of TDS at monitonng well no MW-29, proposes the following follow up action for approval by the Director 1 A geochemical analysis of TDS in MW-29 Comparison of calculated and measured TDSfor samples with complete major ions Charge balance calculations Descriptive statistics Box plots to identify extreme outliers Histograms and Shapiro Wilk test for normality Regression or Mann Kendall trend analysis Proposed Revised GWCL for TDS in MW-29 2 A geochemical analysis of Indicator Parameters in MW-29 Descriptive Statistics Box plots to identify extreme outliers EFR White Mesa U-Mill 2""^ and 3'"^ Qti" Groundwater Momtonng Reports DRC Review Memo Page 8 of 16 Histograms and Shapiro Wilk test for normality Regression and/or Mann Kendall trend analysis The EFR December 13,2012 Plan and Time Schedule argues that the increasing tiend m TDS is likely due to background fluctuation and is not due to tailings cell leakage based on associated decreasing tiends in chlonde, fluonde and sulfate ground water concentiations at well MW-29 EFR proposes as a first step in the analysis of the TDS mcreasmg tiend will be to conduct a geochemical analysis of indicator parameters of the MW-29 groundwater to determine if the "behavior" of chemical constituents has changed since the time of the New Wells Background Report If, based on this analysis, the TDS is concluded to be the result of background fluctuations then EFR will provide a statistical analysis of TDS data from MW-29 using the methods descnbed in the Existing Wells Background Report (INTERA, 2007a) and the Director approved flow sheet for statistical analysis of groundwater data at the White Mesa Uranium Mill EFR agrees to provide the "Source Assessment Report" (SAR) according to activities listed m the December 13,2012 Plan and Time Schedule within 90 days after approval by the Director It IS recommended that DRC approve the EFR December 13,2012 SAR with the following conditions 1 The SAR for TDS at groundwater monitonng well MW-29 will include all stiidy elements and report structure of the October 10,2012 EFR Source Assessment Report (approved by the Director through Stipulated Consent Agreement UGW 12-03), including graphs, plots and charts 2 The SAR will be submitted on or before 90 days fi-om EFR receipt of the conditional approval letter 6. Stipulated Consent Agreement Docket No. UGW12-03 Regarding Studies for Groundwater Monitoring OOC Parameters and Decreasing pH Trends Stipulated Consent Agreement Docket Number UGW 12-03 (SCA) was duly executed by the DRC Director and the EFR Vice President and Counsel on July 12,2012 The SCA was executed in order to provide formal approval of three Plan and Time Schedule Documents, including follow-up actions and timelines, m order to investigate and resolve multiple parameters m out-of-compliance status for several ground monitonng wells at the White Mesa Uranium Mill Facility (See Table 1 Above) Specifically the SCA provides approval for EFR Plan and Time Schedule documents dated June 13,2011, September 7,2011 and Apnl 13,2012 The Apnl 13,2012 Plan and Time Schedule addresses stiidies, actions, and timelmes in order to investigate decreasing pH tiends which have been identified at several monitonng wells across the site Three types of study will be mcluded 1- Geochemical Analysis 2- Mass Balance 3- Hyrogeologic analysis for wells distant fi-om the Mill's tailings cells Geochemical Analysis Study to evaluate "indicator constituents" to determine changes in behavior for each well since the date of the Existing Wells Background Report EFR White Mesa U-Mill 2"'' and 3'*^ Qti" Groundwater Monitonng Reports DRC Review Memo Page 9 of 16 Mass Balance Analysis Evaluation of concentiation m the groimdwater in companson with the Mill tailings and an evaluation of any mounding at the location of the well m question Hydrogeologic Analysis Evaluation to determine the plausibility of impact fi-om Mill tailings The purpose of these studies is to "evaluate the behavior of all the constituents m the well in question to determine if there are any changes in the behavior" of applicable constituents as compared with past studies as cited in the EFR Plan and Time Schedules If significant changes are identified then EFR will propose to the Executive Secretary further analysis to identify the source and the extent of the contamination If no significant changes are identified then EFR will propose changes to the GWCL's for the wells and constituents of concem The SCA requires that any proposed revised GWCL is calculated in accordance with the logic flow diagram included in the background study reports (INTERA 2007) For ground water monitonng wells that are showing decreasing pH tiends, EFR will additionally conduct sampling of existing well core to determine if the hypothesized cause being dissolution of iron pynte in the mineral matnx of the Burro Canyon Aquifer is potentially the cause of such decreasing tiends Agreed upon well core samples will be visually examined by XRF screening and will also be submitted for bench analysis of iron pynte concentiation (% of mineral matnx) DRC received the study documents as required by the Stipulated Consent Agreement UGW 12-03 as follows 1 EFR submitted the '''Source Assessment Report for the White Mesa Uranium MilF dated October 10, 2012 and received by DRC on October 12,2012 2 EFR submitted the pH Report for the White Mesa Mill on November 9,2012 and received by DRC on November 13, 2012 3 EFR submitted the Pynte Investigation Report for the White Mesa Mill on December 7,2012 and received by DRC on December 10,2012 DRC review of these documents is pending No additional action is recommended regardmg the compliance parameters, included in the SCA, until review of the submitted documents has been completed Additional actions will be conducted under separate review of those documents and may include Director Approval of modified GWCL's based on source assessments and statistical tests 7. Monitoring Wells Purged for Two Casing Volumes Before Sample Collection As stated in Section 6 2 7(d)(v) of the DUSA Quality Assurance Plan (QAP), Rev 6 which was m effect dunng the 2"'' Quarter monitonng penod, two casing volumes must be evacuated fi-om the well before the sample is collected (unless purged to dryness) The DUSA QAP directs DUSA to first calculate the amount of time to evacuate two casing volumes and then pump for that length of time As stated in Section 6 2 7 of the EFR Quality Assurance Plan (QAP), Rev 7 2 which was in effect dunng the 3"* Quarter monitonng penod, EFR has a choice regarding purge volumes as follows "7 Purging three well casing volumes with a single measurement offield parameters EFR White Mesa U-Mill 2"'' and 3'*^ Qtr Groundwater Monitonng Reports DRC Review Memo Page 10 of 16 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 DRC review of the reports the followmg methods were used for each Quarter (includmg accelerated samples) Quarter # Purged 2 Casing Volumes # Purged to Dryness # Purged 3 Casing Volumes 2"''2012 39 8 3"* 2012 25 5 4 (continuous pumping) When purging two casing volumes EFR QAP versions 6 and 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 DRC 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 casing volumes (when 2 casing volume method selected) in monitonng wells pnor to sample collection dunng the 2"'* Quarter 2012 and 3"^ Quarter 2012 monitonng penods In cases where wells are evacuated to dryness the QAP Rev 7 2, applicable to 3"* Quarter 2012 sample collection 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 ofpH, specific conductance and temperature are not within 10% RPD, dispose of the sample aliquots, and purge the well again as descnbed 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 submitted for analysis " DRC venfied that in cases where the momtonng well was evacuated to dryness, the number of gallons evacuated was recorded for the 1^^ Quarter 2012 in compliance with the QAP Rev 6 which applied to the EFR White Mesa U-MiU 2"^^ and 3'^^ Qtr Groundwater Momtonng Reports DRC Review Memo Page 11 of 16 quarter sampling Also, DRC venfied that depth to groundwater was measured and recorded (comments field) on the field sheet DRC venfied that in cases where the momtonng well was evacuated to dryness dunng the 3^'* Quarter 2012 that the requirements per the QAP Rev 7 2 (listed above) were followed DRC noted that EFR additionally recorded field readings directly after the purge DRC identified the followmg issues regarding well sampling sheets dunng the 2^^ Quarter 2012 Well No Purge Date Issue 1 MW-14 4/12/12 Averages of field readings were not recorded on the field sheet DRC identified the followmg issues regarding well sampling sheets dunng the 3^'' Quarter 2012 Well No Purge Date Issue- 1 MW-24 7/17/12 Final depth recorded on field sheet is greater than the design well depth 8. Groundwater Samples Collected with Turbidity Measurement >:S NTU As stated in Section 6 2 7(d)(v) of the EFR QAP Rev 6 " turbidity measurement in the water should be <5 NTU prior to sampling unless the well is characterized by water that has a higher turbidity " This language was removed fi-om the QAP under Rev 7 2 Dunng the 2"** and 3"* Quarters 2012 monitonng events, there were 20 compliance well samples with readings above 5 NTU's as follows Table 2 - Groundwater Samples Collected with Turbidity Measurement ^ NTU Groundwater Momtonng Event Well Turbidity, NTU 2"** Qtr, 2012 MW-01 ^'^ 55 T"^ Qtr, 2012 MW-12^'^ 16 0 2'^ Qtr, 2012 MW-17^'^ 11 5 2"" Qtr, 2012 MW-20 ^'^ 488 2"" Qtr, 2012 MW-22 ^'^ 15 1 2"" Qtr, 2012 MW-23 ^'^ 108 2"" Qtr, 2012 MW-26 ^'^ 15 1 2"" Qtr. 2012 MW-29 ^'^ 125 2"'* Qtr, 2012 MW-32 ^'^ 44 2"" Qtr, 2012 MW-25 Accl ^'^ 445 2"'* Qtr, 2012 MW-31 Accl 283 2"** Qtr, 2012 MW-31 Accl ^'^ 26 3"^ Qtr, 2012 MW-12 11 6 3''* Qtr, 2012 MW-23 160 3'" Qtr, 2012 MW-25 11 5 3'** Qtr, 2012 MW-29 21 3 3'** Qtr, 2012 MW-29 14 0 3'" Qtr, 2012 MW-32 66 3''* Qtr, 2012 MW-37 23 2 3'" Qtr, 2012 MW-31 Accl 87 Footnotes 'Data for this well was obtained from Tab B of the 2"^ Quarter 2012 Groundwater Momtonng Report ^Data for this well was obtained from Tab B of the 4* Quarter 2012 Groundwater Momtonng Report EFR White Mesa U-Mill 2"'' and 3'*' Qti- Groundwater Momtonng Reports DRC Review Memo Page 12 of 16 EFR undertook a redevelopment project for groundwater monitonng wells dunng calendar years 2010/2011, m response to a DRC letter dated June 1,2010 A redevelopment report was prepared and submitted to DRC on September 30,2011 (Received by DRC on October 3,2011) which was reviewed by DRC Per the DRC review memo dated November 6,2012 a summary was provided regardmg DRC interaction with independent laboratones regarding the effect of turbidity measurements above 5 NTU on laboratory methods included m the QAP Per the review, PRC found based on the above information turbid samples > 5 NTU should not affect analysis for the monitoring parameters required in the QAP " It is noted that the high NTU would affect only the nutnent and background parameters since other samples are field filtered Based on the updated QAP language (Rev. 7 2) and DRC Redevelopment Report findings, the turbidity readings are not m violation of the Permit or current approved QAP 9. Relative Percentage Difference Calculations for Blind Duplicate Analvsis DRC conducted a review of the blmd duplicate samples collected dunng each of the monitonng quarters Per the facility QAP, one blind duplicate must be collected with each sample batch DRC confirmed that one blind duplicate was collected for each batch 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 m the QAP Rev 7 2 Part 9 1 4, if any of the samples do not meet the companson cntena (and are not qualified according to the 5 times method detection limit cntena) 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 transcnption 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 The results of the 2"** Quarter of 2012 (MW-26/MW-65 5/7/2012) blind duplicates for Fluonde did not meet the 20% cntena (RPD value was 20 69%) DRC notes that the nonconformance was identified by EFR m Section 3 4 7 of the 2"** Quarter Monitonng Report, as well as on Table G7-A in appendix G of the report Per the EFR Report "The sample results reported for MW-18/MW70 were not five times greater than the reporting limit of 30 and as such the deviation from the 20% RPD requirement is acceptable " Per DRC review of the results for the 3"* quarter of 2012 blind duplicates, all results appear to be within the 20% RPD requirement Per DRC review, the EFR blind duplicate compansons and explanations seem appropnate m the 2"^^ and 3"* Quarter Momtonng Reports EFR White Mesa U-Mill 2"^^ and 3'*^ Qtr Groundwater Momtonng Reports DRC Review Memo Page 13 of 16 10. Analytical Laboratories Used by EFR Certified bv State of Utah to Perform Analvsis for all Analytes The analytical laboratones (Energy Laboratones, Casper, WY and Amencan West Analytical Laboratones, Salt Lake City, UT) were contiacted by EFR to perform analysis on the samples collected dunng the 4* Quarter, 2011 and 1'^ Quarter 2012 Per DRC review of the National Environmental Laboratory Accreditation Management System Website (cross check of laboratory certification for specific parameters) it appears that the EFR contiact laboratones were certified to perform analysis for the specified parameters dunng the review penod as follows The Bureau of Laboratory Improvement - Energy Laboratones Utah Certification current valid through 1/15/2013 for affected parameters and including the time penod of analyses for the reviewed reports The Bureau of Laboratory Improvement ~ Amencan West Analytical Utah Certification current valid through 1/4/2013 for affected parameters and including the time penod of analyses for the reviewed reports 11. Laboratory Report Turn Around Times Per DRC review of EFR Table 1 included m the 2"^* and 3"* Qti 2012 Reports, it was noted that laboratory report tumaround times (fi-om date of EFR sample submission to the contiact laboratory) was generally in the range of 1 month, with longest turnaround times of 2 months There is not a tumaround requirement in the current QAP, therefore, current tumaround times are judgment based DRC has raised concem over excessive laboratory tum-around times and the Director may require a tum-aroimd date be included m the facility QAP if additional concems are noted The tum-around times in the 2"** and 3"* Quarter reports appear to be reasonable 12. Laboratory QA/QC Flags - 2"" Quarter 2012 QA/QC issues and DRC findings for the 2"^ Quarter 2012 are summanzed below Non-C6ipi|toance' jden#fied'? I^FI^prectiveAc^ ^Summary . ^DRCFfflmgs y-V Routine Reporting Limit Check found discrepancy regarding some parameters which were raised due to dilution of the sample (sample matnx interference) Y Discrepancies were reported Raising RL's due to sample matnx is common It may be appropnate to raise the RL's m the facility QAP Multiple Momtonng Wells with Counting Errors > 20%, Gross Alpha Y EFR Venfied that data results were below the GWCL Sum of the activity concentiation and error term result was <GWCL Matnx Spike outside of laboratory recovery limits for several monitonng wells, THF, Ca, Mg, Na, Mn, Ag, Se, Acetone, MEK and U Y Recorded Discrepancies m Appendix G Recovenes vaned but were qualified by the laboratory, no range required by current QAP Surrogate Recovenes outside Y Recorded Discrepancies in MS Recovenes vaned. EFR White Mesa U-Mill 2"'' and 3'^^ Qti- Groundwater Momtonng Reports DRC Review Memo Page 14 of 16 of laboratory limits for p- Bromofluorobenzene at several monitonng wells Appendix G qualified by the laboratory, no range required by current QAP Method Blank detections above QAP required RL for Bicarbonate Y Recorded Discrepancies in Appendix G and discussion in section 3 4 9 of the Report "QAP Revision 7 2 states that non-conformance conditions will exist when contaminant levels in the samples are not order of magnitude greater than the blank result" DRC notes that blank compansons are mcluded in part 9 1 3 of the current QAP Rev 7 2 Data appears to be qualified, > than an order of magnitude for affected samples LCS Recovery outside of laboratory acceptance range for Methyl Ethyl Keytone and Acetone Y Recorded Discrepancies in Appendix G No QAP required range, data was qualified by the laboratory Note 13. DRC reviewed the holdmg time summary chart, no exceedances of holding times were noted DRC reviewed the temperature check charts, all sample batches were received by the laboratory ^°C Laboratory QA/QC Flags - 3"* Quarter of 2012 QA/QC issues and DRC findings for the 3*^^ Quarter 2012, as summanzed by EFR, below Non-Confoonance ^ sSmW^' *' Self- Identif^*? 0^ Co|i^e Action ^ p ^Summary fD^lpidmgf .=^.1,. Routine Reporting Limit Check found discrepancy regardmg some parameters which were raised due to dilution of the sample (sample matnx interference) Y In all cases the reported value for the analyte was higher than the increased detection limit Data qualified by a "D" flag Raising RL's due to sample matnx interference appeared to be appropnate and acceptable based on data results Low Matnx Spike Recovenes for several sample parameters Y Recorded the Discrepancy in the laboratory reports and section G of the report No requirements in current approved QAP Low Surrogate Recovery for p-Bromofluorobenzene Y Recorded the Discrepancy No requirements m current approved QAP Method Blank Bicarbonate concentiations reported above the QAP required RL Y Recorded Discrepancies in Appendix G and discussion in section 3 49of the Report "g^P Revision 7 2 states that non-conformance conditions will exist when contaminant levels in the DRC notes that blank compansons are included m part 9 1 3 of the current QAP Rev 7 2 Data appears to be qualified, > than an order of magnitude for affected samples EFR White Mesa U-Mill 2"^* and 3'*^ Qtr Groundwater Monitonng Reports DRC Review Memo Page 15 of 16 ^»C(IBbriri»ce .iSummars^t Self- ft,.. IdentSj^ El^Jorrecti ve #c]^on Sunanai^ • , -. -tl; -.. PgRCFl^^gS'^lJ:^^ samples are not order of magnitude greater than the blank result" High Recovery for Gross Alpha LCS Y Recorded the Discrepancy No requirements in current approved QAP High Matiix Spike % Recovery for Nitiate Nitnte as N Y Recorded Discrepancies m Appendix G No QAP required range, data was qualified by the laboratory Note DRC reviewed the holding time summary chart, no exceedences of holding times were noted DRC reviewed the temperature check charts, all sample batches were received by the laboratory ^°C 14. Review of Time-Concentration Plots The Permit Part IF 1 g requires EFR to subrmt Time-Concentiation Plots for each monitonng well for chlonde, fluonde, sulfate and uranium Per DRC review of the Time-Concentiation Plots for the 2"** Qti 2012 and 3"* Qti 2012 it appears that all issues which were reported and discussed dunng previous DRC review (r*, 2"**, and 3"^^ Qti's 2011 Reports) have been resolved Specifically, EFR is no longer culling data fi-om the plots based on the EFR findings that certain concentiations are outliers DRC requested that EFR plot all ground water data histoncally and it appears that the plots are representative of the data DRC notes that per the discussions with EFR it was agreed to that EFR need not plot tiend lines on the Time Concentiation Plots. Therefore, the plots no longer mclude tiend lines The reviewed plots appear to be in conformance with the agreed upon changes 15. Review of Depth to Groundwater Measurements and Water Table Contour Maps Per DRC cross checks of groundwater elevation measurement calculations used for the 2"*^ Quarter 2012 and 3'** Quarter 2012, approximately 5% of wells cross checked, companng well as built groundwater elevation data with current depth to water measurements, no errors were found DRC noted that groundwater elevations appeared stable and in conformance with histoncal levels dunng the review penods No effects regardmg dewatenng of the upper wildlife ponds were noted on local groundwater mounding 16. Violations Where a Notice of Violation and Order is Recommended per Report Reviews 1 Samples for the volatile organic compounds (VOCs) exceeded the QAP required sample holding time for monitonng well MW-26 for the September 2012 accelerated monitonng penod Monthly accelerated samples for chloroform and dichloromethane were mvalid for September 2012 Violations of Ground Water Discharge Permit No UGW370004 Part IG 1 b and Part IG 4 b EFR White Mesa U-Mill 2"*^ and 3''' Qti- Groundwater Monitonng Reports DRC Review Memo Page 16 of 16 2 EFR failed to collect a monthly accelerated sample for chloroform and dichloromethane at well MW-26 durmg July, 2012 EFR states that the parameter had to be resampled due to "poor agreement" between the MW-26 sample and the blind duplicate MW-65 sample, however, the resample was not collected dunng the required month Violations of Ground Water Discharge Permit No UGW370004 Part IG 1 b and Part IG 4 b 17. Conditional Approval Recommended per Report Review It IS recommended that the Director conditionally approve the "Source Assessment Report" (SAR) according to activities outlined in the December 13,2012 Plan and Time Schedule, with the following conditions 1 The SAR for TDS at groundwater monitonng well MW-29 will include all study elements and report stmcture of the October 10,2012 EFR Source Assessment Report, including graphs, plots and charts 2 The SAR will be submitted on or before 90 days fi-om EFR receipt of the conditional approval letter 18. Advisories Recommended per Report Reviews Two issues for advisory were noted by DRC dunng review of the field sheets for groimdwater monitonng dunng the review penod 1 Averages of field readings were not recorded on the field sheet for monitonng well MW-14 during the 4/12/12 sampling, 2 "Final depth" recorded on the field sheet for monitoring well MW-24 dunng the 7/17/12 sampling was greater than the total well depth 19. References * Energy Fuels Resources (USA) Inc , July 27, 2012, Notice Pursuant to Part IG l(aj Q2, 2012 ^Energy Fuels Resources (USA) Inc , August 29, 2012, T'^ Quarter 2012 Groundwater Monitoring Report Groundwater Discharge Permit UGW370004, White Mesa Uranium Mill ^ Energy Fuels Resources (USA) Inc , December 13,2012, Notice Pursuant to Part IG 4(d) Q3, 2012 Energy Fuels Resources (USA) Inc , November 26, 2012,5'^^ Quarter 2012 Groundwater Monitonng Report Groundwater Discharge Permit UGW370004, White Mesa Uranium Mill ^ Energy Fuels Resources (USA) Inc , March 22,2010, White Mesa Uranium Mill Ground Water Monitoring Quality Assurance Plan (QAP), Revision 6 ^Energy Fuels Resources (USA) Inc , June 6,2012, White Mesa Uranium Mill Ground Water Monitoring Quality Assurance Plan (QAP), Revision 7 2 ^Utah Department of Environmental Quality, Division of Radiation Control, Ground Water Discharge Permit, Permit No UGW370004, Denison Mines (USA) Corp