DRC-2013-001191 - 0901a06880348040

State of Utah
GARY R HERBERT
Governor
GREG BELL
Lieutenant Governor
February 4,2013
Department of
Environmental Quality
' Amanda Smith
Executive Director
DIVISION OF RADIATION CONTROL
Rusty Lundberg ''
Director
CERTIFIED MAIL
(Return Receipt Requested)
Jo Ann Tischler, Director, Compliance
Energy Fuels Resources (USA) Inc
225 Union Boulevard, Suite 600
Lakewood, CO 80228
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RE 2/4/13, CONDITIONAL APPROVAL/TR
JO ANN TISCHLER
ENERGY FUELS RESOURCES (USA) INC
225 UNION BLVD , STE 600
LAKEWOOKCO 80228
PS Form 3»00. August 200S
Subject Energy Fuels Resources (USA) Inc 2"*^ Quarter 2012 and 3"* Quarter 2012
Groundwater Monitonng Reports, Utah Ground Water Discharge Permit No
UGW370004 DRC Conditional Approval, Advisory and Notice of Violation Docket
No. UGW13-01
Dear Ms Tischler DRC-2013-001191
The Utah Division of Radiation Control (DRC) has completed a review of the following documents
submitted by Energy Fuels Resources (USA) Ihc ("EFR")
1 Energy Fuels Resources (USA) Inc , July 27,2012, State of Utah Ground Water Discharge Permit
No UGW370004 White Mesa Uranium Mill - Notice Pursuant to Part IG 1(a), Re 2"^ Qtr 2012
2 Energy Fuels Resources (USA) Inc , August 29, 2012, White Mesa Uranium Mill Groundwater
Monitoring Report, 2^ Quarter (April through June) 2012
3 Energy Fuels Resources (USA) Inc , November 15,2012, State of Utah Ground Water Discharge
Permit No UGW370004 White Mesa Uranium Mill - Notice Pursuant to Part IG 1(a), Re 3"* Qtr
2012
4 Energy Fuels Resources (USA) Inc , November 26,2012, White Mesa Uranium Mill Groundwater
Monitoring Report, 3'''^ Quarter (July through September) 2012
5 Energy Fuels Resources (USA) Inc , December 13,2012, Transmittal of Plan and Time Schedule
under Utah Ground Water Discharge Permit UGW370004 Part IG 4(d) White Mesa Uranium
Mz//, Re 3"* Qtr 2012
These documents were submitted per the requirements of the EFR White Mesa Mill Utah Ground Water
Discharge Permit, Permit No UGW370004 (Permit) DRC review was conducted to determine EFR
compliance with those Permit requirements
The DRC review was conducted m consideration of the following ongoing actions related to groundwater
compliance monitonng at the White Mesa Mill and EFR submissions
1 A May 25,2012 Permit modification request submitted by EFR The modification request was to
195 North 1950 West • Salt Lake City, UT
Mailing Address P O Box 144850 • Salt Lake City, UT 84114-4850
Telephone [phone] • Fax [phone] 'TDD [phone]
www deq utah gov
Printed on 100% recycled paper
Jo Ann Tischler
Page 2 '
document and formalize updated accelerated monitonng notification report agreements, affecting
Part IG 1(a) of the Permit, and which were made between EFR and DRC via teleconference The
May 25, 2012 request will be included with the White Mesa Mill Ground Water Permit Renewal
(Currently m the review process)
2 An EFR source assessment report, dated October 10,2012, for previously documented out-of-
compliance parameters (multiple parameters), required per Stipulated Consent Agreement Docket
No UGW12-03, and currently under DRC review j
3 An EFR pH report, dated November 9,2012, which evaluates monitonng wells out-of-compliance
for pH, required per Stipulated Consent Agreement Docket No UGW 12-03, and cunently under
DRC review
4 An EFR pynte investigation report, dated December 7,2012, required per Stipulated Consent
Agreement Docket No UGW 12-03, and currently under DRC review
Advisory
Two issues were identified by DRC staff dunng review of the field sheets
Reports
for the 2""* and 3"* Qtr 2012
1 Averages of field readings were not recorded on the field sheet for monitonng 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 well depth
Conditional Approval
The December 13,2012 EFR Plan and Time Schedule document, regarding 2 consecutive (OOC)
exceedances of TDS at monitonng well no MW-29, proposes follow up action and submission of a source
assessment report (SAR) to DRC for approval by the Director ,
The EFR December 13,2012 Plan and Time Schedule states the TDS exceedances are likely due to
background fluctuation and are not due to tailings cell leakage This is based on associated decreasmg
trends m chlonde, fluonde and sulfate ground water concentrations at well MW-29 EFR proposes as a
first step m the analysis of the TDS exceedances, to conduct a source assessment and geochemical analysis
of TDS and indicator parameters to determme 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 fi^om MW-29
using the methods descnbed m the Existing Wells Background Report (INTERA, 2007a) and the approved
flow sheet for statistical analysis of groundwater data at the White Mesa Uranium Mill
The EFR December 13,2012 Plan and Time Schedule is hereby approved with the following conditions
1 The EFR Source Assessment Report ("SAR") for TDS at groundwat
will include all study elements, procedural requirements and report
2012 EFR Source Assessment Report (including but not limited to
included therein)
er monitonng well MW-29
structure as the October 10,
graphs, plots and chart types
The SAR will be submitted to DRC by EFR withm 90 calendar days fi-om EFR receipt of this
letter
Jo Ann Tischler
Page 3
Notice of Violation
A Notice of Violation and Compliance Order ("NOV/CO"), Docket No UGW 13-01 is enclosed and is
based on the Utah Division of Radiation Control (DRC) findings from review of the 3*^^ Quarter 2012
Groundwater Monitonng Report
A written response is required within 30 calendar days after receipt of the NOV/CO. The NOV/CO
is fully enforceable unless appealed in writing within 30 calendar days, as described in the "Notice"
section of the NOV/CO. Any response or written answer to the NOV/CO should be addressed to
Rusty Lundberg, Director, Utah Water Quality Board, 195 North 1950 West, P.O. Box 144850, Salt
Lake City, Utah 84114-4850.
If you have questions regarding this letter or the enclosed NOV/CO, please contact Tom Rushing at (801)
536-0080
Sincerely,
Rusty Lunooerg
Director
Enclosure Notice of Violation and Order, Docket No UGW 13-01
F \Energy Fuels\Groundwater Reports\2012 Groundwater Reports\2012 2nd and 3rd Quarter Review\EFR 2nd and 3rd Qtrs 2012 GW Reports
DRC Ltr docx
UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY
I IN THE MATTER OF ! DOCKET NUMBER UGW13-01
ENERGY FUELS RESOURCES (USA) INC. • NOTICE OF VIOLATION AND
I 225 UNION BLVD., SUITE 600 i COMPLIANCE ORDER
i LAKEWOOD CO, 80228 ! \
A. STATUTORY AUTHORITY
This NOTICE OF VIOLATION AND COMPLIANCE ORDER (NOV/CO) is issued to ENERGY
FUELS RESOURCES (USA) INC. (hereafter "EFR") by the Director of the Utah Division of Radiation
Control (hereafter "DIRECTOR") under the Utah Water Quality Act, Utah Code Ann §§ 19-5-101 to
19-5-123 (ACT), including sections 19-5-104, -106, -111 and -115 This NOV/CO is also issued m
accordance with the Utah Administrative Procedures Act, Utah Code Ann §§ 63G-4-101 to 63G-4-601
and Administrative Procedure Rules, Utah Administrative Code (UAC)jR305-6
Under the Water Quality Act, Utah Code Title 19, Chapter 5, "DIRECTOR" for purposes of
groundwater quality at a facility licensed by and under the junsdiction of the Division of Radiation
Control, means the Director of the Utah Division of Radiation Control Utah Code Ann § 19-5-102(6)
The DIRECTOR may enforce rules made by the Water Quality Board through the issuance of orders m
accordance with Utah Code Ann § 19-5-106(2)(d) |
B. APPLICABLE STATUTORY AND REGULATORY PROVISIONS
1 The DIRECTOR issued EFR a Utah Ground Water Quality Discharge Permit No UGW370004
(hereafter "Permit") for the White Mesa Uranium Mill (hereafter "Facility") on March 8,2005
Said Permit was modified by the DIRECTOR on March 17, 2008, January 20, 2010, June 17,
2010, February 15,2011, July 14,2011, August 8,2012, and was last modified on August 24,
2012
2 Part IG 1 b of the Permit requires accelerated sample for groundwater pollutants m the event that
the concentration of a pollutant in any compliance monitonng exceeds a Ground Water
Compliance Limit listed m Table 2 of the Permit and states ''Immediately initiate accelerated
sampling of the pollutant as follows 1) Quarterly Baseline Monitonng Wells - for wells defined
by Part IE 1(b) the Permittee shall initiate monthly monitoring 2) Semi-annual Baseline
Monitoring Wells - for wells defined by Part IE 1(c) the Permittee shall initiate quarterly ,
monitoring Said accelerated monitonng shall continue at the frequencies defined above until the
compliance status of the facility can be determined by the Director "
3 Part IG 4 b of the Permit requires contmued accelerated sampling if the facility is out of
compliance and states ''The Permittee shall continue accelerated sampling pursuant to Part
IG1, unless the Director determines that other periodic sampling is appropriate, until the
facility IS brought into compliance^
4 The White Mesa Uranium Mill Ground Water Monitonng Quality Assurance Plan, Revision 7 2
(hereafter "QAP") Part 8 2, Table 1, requires a maximum holding time for chloroform and
dichloromethane samples of 14 days i
Docket No UGW13-01 Page 1
C. FINDINGS OF FACT
The Facility receives and processes natural uranium-beanng ores and certain specified altemate
feed matenals, and possesses byproduct matenal m the form of uranium waste tailmgs and other
uranium byproduct waste generated by the licensee's milling operations This facility is located
approximately 6 miles south of Blanding, Utah on a tract of land in Sections 28,29, 32, and 33,
Township 37 South, Range 22 East, Salt Lake Baseline and Mendian, San Juan Coimty, Utah
The Facility compliance groundwater monitonng network includes monitonng well No MW-26
which IS required by the Permit to be monitored for contaminants listed on Table 2 therein
Monitonng well MW-26 is currently bemg employed as a pump and capture well at the Facility
to remediate chloroform contamination in groimd water beneath and contaminated by the Facility
Monitonng well MW-26 initially exceeded Permit ground water compliance limits (hereafter
"GWCL's") for chloroform, under the terms of the newly issued Permit, on July 26,2005 EFR
was required to commence accelerated monthly monitonng for chloroform at monitonng well
MW-26 starting 3"* Quarter 2005 (First monthly accelerated sample collected July 26,2005)
Monitonng well MW-26 mitially exceeded Permit GWCL's for dichloromethane, under the terms
of the newly issued Permit, on June 22, 2005 EFR was required to commence accelerated
monthly monitonng for dichloromethane at monitonng well MW-26 starting August 2005
EFR submitted a 3"^^ Quarter 2012 Groundwater Monitonng Report for the Facility to the Utah
Division of Radiation Control (hereafter "DRC") dated November 26, 2012 and received by DRC
on November 27,2012 (hereafter "Report")
DRC staff (Tom Rushing) conducted a review of the Report and summanzed DRC review
findings in a DRC Memorandum (to the Facility file through Phil Goble, DRC Compliance
Section Manager) dated January 28,2013 Per the DRC January 28,2013 Memorandum, the
foUowmg findmgs regarding deficiencies m complying with the applicable Permit conditions
were mcluded
"The following failures to collect compliance groundwater samples were noted by DRC during
review of the 3^^ Quarter 2012 Report as follows
1 Samples for the volatile organic compounds (VOC's) exceeded the QAP required sample
holding time for monitonng well MW-26 for the September 2012 accelerated monitoring
period Therefore, monthly accelerated samples for chloroform and dichloromethane
were invalidfor September 2012 Violation of Ground Water Discharge Permit No
UGW370004 Part IGlb and Part IG4b
2 EFR failed to collect a monthly accelerated sample for chloroform and dichloromethane
at well MW-26 during 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
Noncompliance with Ground Water Discharge Permit No UGW370004 Part IGlb and
Part IG 4 b
These issues were also identified by EFR and included in the 5'^^ Qtr Report narrative Causes of
the violations, as per EFR, for each of the violations were as follows
Docket No. UGW13-01 Page 2
Violations land 2 - These violations are discussed in section 4 0 of the 3'^^ Qtr 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 "rnore than sufficient time " to
analyze the sample within the required holding time and determines that the corrective action will
be to change contract laboratones
Violations 3 and 4 - These violations are discussed in section 211 of the 3^*^ Qtr 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-65) i
• DRC notes that EFR does not identify violations 3 and 4\(as violations) and does not
include corrective action with the 3^^ Qtr 2012 Report"[
D. VIOLATIONS
Based on the foregoing FINDINGS OF FACT, EFR is m violation of the following
1 Part IG 1 b and Part IG 4 b of the Permit for failing to submit valid September 2012
grotmdwater monitonng data for chloroform m monitonng well MW-26, for required monthly
accelerated groundwater samples ' I
2 Part IG 1 b and Part IG 4 b of the Permit for failing to submit valid September 2012
groundwater monitonng data for dichloromethane m monitonng jwell MW-26, for required
monthly accelerated groundwater samples i
!
3 Part IG 1 b and Part I.G 4 b of the Permit for failing to collect and submit July 2012 groundwater
monitonng data for chloroform in monitonng well MW-26, for required monthly accelerated
groundwater samples
4 Part IGlb and Part IG 4 b of the Permit for failing to collect and submit July 2012 groundwater
monitonng data for dichloromethane m monitonng well MW-26i for required monthly
accelerated groundwater samples |
E. ORDER
In view of the foregoing FINDINGS and VIOLATIONS, and pursuant to Utah Code Annotated Section
19-3-108, EFR is hereby ordered to
1 Immediately mitiate all actions necessary to achieve compliance
the Utah Water Quality Act, Ground Water Quality Rules m the
the Permit
with all applicable provisions of
Utah Administrative Code, and
Submit a response to the DIRECTOR within 30 calendar days of receipt of this NOV/CO to
mclude but not be limited to the followmg items j
a The root cause of the noncompliance, |
b Corrective steps taken or to be taken to prevent re-occurrencL of the noncompliance.
c Date when compliance was/or will be achieved
Docket No UGW13-01 Page 3
F. NOTICE
Compliance with the provisions of this NOV/CO is mandatory Under the Division's Penalty Cntena for
Civil Settlement Negotiations, Utah Administrative Code § R317-1-8, EFR good faith efforts to comply
with this Compliance Order may impact the monetary penalty that could apply in a settlement Providing
false information may subject EFR to further civil penalties or cnmmal fines
UCA § 19-5-115 provides that a violation of the ACT or a related order may be subject to a cml penalty
of up to $10,000 per day of violation Under certain circumstances of willfiilness or gross negligence,
violators may be fined up to $25,000 per day of violation
G. CONTESTING THIS NOV/CO
This NOV/CO is effective immediately and shall become final imless your wntten contest to this
NOV/CO IS received by the DIRECTOR within thirty (30) calendar days after the date this NOV/CO
was signed See Utah Admm Code R305-6-106 and R305-6-202 Any fiirther administrative
proceedmgs m this case shall be conducted formally under Utah Code Ann §§ 63G4-101 through 63G-4-
601
To contest this NOV/CO, you must respond in wntmg and must comply with Utah Admin Code R305-6-
202, which requires, among other things, that you state you're factual and legal reasons for disagreemg
with the Notice of Violation or Compliance Order, and that you state the action that you would like the
agency to take.
A response contesting this NOV/CO must be received by the DIRECTOR withm 30 calendar days of
receipt of this NOV/CO
(Mailing address) (Address for by-hand or overnight delivery)
Rusty Lundberg, Director Rusty Limdberg, Director
Utah Division of Radiation Control Utah Division of Radiation Control
195 North 1950 West 195 North 1950 West
P O Box 144850 Salt Lake City UT, 84116
Salt Lake City, UT 84114-4850
You will not be allowed to contest this NOV/CO m court or m any other forum if you do not first contest
the NOV/CO as descnbed above
Signed this day of February, 2013
UTAH DIVISION OF RADIATION CONTROL
Rusty Lun^rg, Director ( \
F \Energy FuelsXGroundwater Reports\2012 Groundwater Reports\2012 2nd and 3rd Quarter Review\Notice of Violation UGW13-01\NOV
Docket No UGW13-01 EFR 3rd Qtr 2012 docx
Docket No UGW13-01 Page 4