DRC-2013-002447 - 0901a0688038a75b

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State of Utah
GARY R HERBERT
Governor
GREG BELL
Lieutenant Governor
May 30, 2013
Department of
Environmental Quality
Amanda Smith
Executive Director
DIVISION OF RADIATION CONTROL
Rusty Lundberg
Director
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CERTIFIED MATT,
(Return Receipt Requested)
Jo Ann Tischler, Manager, Compliance and Licensing
Energy Fuels Resources (USA) Inc.
225 Union Boulevard, Suite 600
Lakewood, CO 80228
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"DRC-2013-002447"
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Jo Ann Tischler
Energy Fuels Resources (USA) Inc
225 Union Boulevard, Suite 600
Lakewood, CO 80228
PS Form 3800. Ajgust 2006 See Reverse for Instructions
Subject: Energy Fuels Resources (USA) Inc. 4th Quarter 2012 Groundwater Monitonng Report,
White Mesa Uranium Mill, Utah Ground Water Discharge Permit No. UGW370004: DRC
Conditional Approval, and Notice of Violation and Order Docket No. UGW13-03
Dear Ms. Tischler:
The Utah Division of Radiation Control ("DRC") has completed a review of the following three documents
submitted by Energy Fuels Resources (USA) Inc. ("EFR").
1. EFR, February 26, 2013, White Mesa Uranium Mill Groundwater Monitoring Report, 4th Quarter
(October through December) 2012
2. EFR, February 15, 2013, Notice Pursuant to Part I.G.4(d) Q4, 2012
3. EFR, March 14, 2013, Transmittal of Plan and Time Schedule under Utah Ground Water
Discharge Permit UGW370004 Part I.G.4(d) White Mesa Uranium Mill
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 the Permit requirements.
Additionally, the DRC review was conducted with consideration of the following ongoing actions related
to groundwater compliance monitoring at the White Mesa Uranium Mill and EFR submissions:
1. A May 25, 2012 Permit modification request submitted by EFR. The modification request was to
document and formalize updated accelerated monitoring notification report agreements, affecting
Part I.G. 1(a) of the Permit, 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 ("SAR"), dated October 10,2012, for previously documented
out-of-comphance parameters (multiple parameters), required per Stipulated Consent Agreement
Docket No. UGW 12-03. Per DRC review findings as documented in a DRC review memo dated
April 23, 2013 and as transmitted via letter from the Director to EFR dated April 25, 2013, specific
195 North 1950 West • Salt Lake City, UT
Mailing Address P O Box 144850 • Salt Lake City, UT 84114-4850
Telephone [phone] • Fax [phone] • T D D [phone]
www deq Utah gov
Pnnted on 100% recycled paper
Jo Ann Tischler
Page 2
GWCL parameters for monitonng wells will be modified (12 instances) in the Permit and GWCL's
will be removed from the Permit for three up-gradient monitoring wells; Additionally, two
monitonng well GWCL parameters will be modified in the Permit pending additional discussion
between DRC and EFR regarding a potential modified approach for statistical evaluation.
3. An EFR pH report, dated November 9,2012, which evaluates monitonng wells which are out-of-
compliance for pH, required per Stipulated Consent Agreement Docket No. UGW 12-03. Per
DRC review findings as documented in a DRC review memo dated April 23,2013 and transmitted
via letter to EFR from the Director dated April 25, 2013, GWCL's for pH at all MW senes
monitonng wells be modified based on the revised statistical evaluation (calculated using field
measured pH instead of laboratory measured values).
Conditional Approval
The March 14, 2013 EFR Plan and Time Schedule document, regarding 2 consecutive (OOC) exceedances
of Selenium at monitoring well MW-31, proposes follow up action and submission ofa source assessment
report ("SAR") to DRC for approval by the Director.
EFR agrees in the March 14,2013 Plan and Time Schedule to provide a study and prepare an SAR with the
same format that was used for the October 10, 2012 SAR (See item 2 above).
If the cause of the selenium exceedances is proven to be the result of natural background fluctuation, EFR
will provide a statistical analysis of selenium data from MW-31 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, and proposal of a modified GWCL.
Per the Plan and Time Schedule, EFR agrees to provide the "Source Assessment Report" (SAR) according
to activities listed in the March 14,2013 Plan and Time Schedule within 90 days after approval by the
Director.
The EFR March 14, 2013 Plan and Time Schedule is hereby approved with the following conditions:
1. The SAR for Selenium at groundwater monitoring well MW-31 will include all study
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, and;
2 The SAR will be submitted on or before 90 calendar days from EFR receipt of this
conditional approval letter.
Notice of Violation
A Notice of Violation and Compliance Order ("NOV/CO"), Docket No. UGW13-03 is enclosed and is
based on the Utah Division of Radiation Control (DRC) findings from review ofthe 4th Quarter 2012
Groundwater Monitoring Report.
A written response is required within 30 calendar days after the date this NOV/CO was signed. The
NOV/CO is fully enforceable unless appealed in writing within 30 calendar days, as described in the
"Notice" section ofthe 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.
Jo Ann Tischler
Page 3
If you have questions regarding this letter or the enclosed NOV/CO, please contact Tom Rushing at (801)
536-0080.
Sincerely,
Rusty Lundberg
Director
Enclosure: Notice of Violation and Order, Docket No. UGW 13 -03
F \Energy Fuels\Groundwater Reports\2012 Groundwater Reports\2012 4th Quarter Review\EFR 2012 4th Qtr GW Report DRC Ltr docx
UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY
IN THE MATTER OF
ENERGY FUELS RESOURCES (USA) INC.
225 UNION BLVD., SUITE 600
LAKEWOOD CO, 80228
i DOCKET NUMBER UGW13-03
! NOTICE OF VIOLATION AND
! COMPLIANCE ORDER
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 ofthe 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 in
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) R305-7.
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 jurisdiction 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 in
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 I.G. 1 .b of the Permit requires accelerated sampling for groundwater pollutants in the event
that the concentration of a pollutant in any compliance monitoring well 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 Monitoring Wells - for wells defined
by Part I.E. 1(b) the Permittee shall initiate monthly monitoring. 2) Semi-annual Baseline
Monitoring Wells - for wells defined by Part I.E. 1(c) the Permittee shall initiate quarterly
monitoring. Said accelerated monitoring shall continue at the frequencies defined above until the
compliance status of the facility can be determined by the Director."
1. The Facility receives and processes natural uranium-bearing ores and certain specified alternate
feed matenals, and possesses byproduct matenal in the form of uranium waste tailings and other
uranium byproduct Waste generated by the licensee's milling operations. The 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 County, Utah.
C. FINDINGS OF FACT
Docket No. UGW13-03 Page 1
2. The Facility compliance groundwater monitormg network includes monitonng well MW-31
which is required by the Permit to be monitored for ground water compliance pollutants listed on
Table 2, including selenium, on a quarterly baseline frequency.
3. Monitoring well MW-31 initially exceeded the Permit ground water compliance limit (hereafter
"GWCL") for selenium on July 9,2012 (3rd Quarter 2012).
4. The Utah Division of Radiation Control (hereafter "DRC") received notification that momtoring
well MW-31 had exceeded the GWCL for selenium per an EFR November 15,2012 Notice
Pursuant to Part I.G. 1(a) ofthe Permit (hereafter "Notice").
5. EFR was required to commence accelerated monthly monitoring for selenium at monitoring well
MW-31, starting December 2012 (The first monthly samplmg event after EFR submission of the
Notice to DRC).
6. EFR submitted a 4th Quarter 2012 Groundwater Monitoring Report for the Facility to DRC dated
February 26,2013 and received by DRC on February 27,2013 (hereafter "Report").
7. Per DRC staff review of the Report, and as summarized in a DRC review findings memorandum,
dated May 15,2013, it was noted that EFR failed to collect an accelerated sample for selenium at
monitoring well MW-31 dunng December 2012 as required by the Permit.
8. Per Section 3.3 ofthe Report EFR also reported that an accelerated monthly sample for selenium
at monitoring well MW-31 was not collected during January 2013 as required by the Permit.
D. VIOLATIONS
Based on the foregoing FINDINGS OF FACT, EFR is in violation ofthe following:
1. Part I.G. 1 of the Permit for failing to collect a monthly accelerated sample for selenium at
monitonng well MW-31 during the December 2012 and January 2013 acceraleted sampling
events.
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 initiate all actions necessary to achieve compliance with all applicable provisions of
the Utah Water Quality Act, Ground Water Quality Rules in the Utah Administrative Code, and
the Permit.
2. Submit a response to the DIRECTOR within 30 calendar days of receipt of this NOV/CO to
include but not be limited to the following items:
a. The root cause of the noncompliance,
b. Corrective steps taken or to be taken to prevent re-occurrence ofthe noncompliance,
c. Date when compliance was/or will be achieved.
Docket No. UGW13-03 Page 2
F. NOTICE
Compliance with the provisions of this NOV/CO is mandatory. Under the Division's Penalty Criteria for
Civil Settlement Negotiations, Utah Administrative Code § R317-1-8, EFR's 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 criminal fines.
UCA § 19-5-115 provides that a violation of the ACT or a related order may be subject to a civil penalty
of up to $10,000 per day of violation. Under certain circumstances of willfulness 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 unless your written 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 Admin Code R305-7-303. Any further administrative proceedings in 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 writing and must comply with Utah Admin Code R305-7-
303, which requires, among other things, that you state you're factual and legal reasons for disagreeing
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 within 30 calendar days after
the date this NOV/CO was signed.
(Mailing address) (Address for by-hand or overnight delivery)
Rusty Lundberg, Director Rusty Lundberg, 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 in court or in any other forum if you do not first contest
the NOV/CO as described above.
Signed this day of May, 2013
UTAH DIVISION OF RADIATION CONTROL
Rusty LundbeiE, pirector Q J
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Docket No. UGW13-03 Page 3