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HomeMy WebLinkAboutDRC-2014-005327 - 0901a0688049136attflllflf) ...... State of Utah GARY R. HERBERT Governor SPENCER J. COX Lieutenant Governor Department of Environmental Quality Amanda Smith Executive Director DIVISION OF RADIATION CONTROL Rusty Lundberg Director DRC-2014-005327 MEMORANDUM TO: File THROUGH: Phil Goble, Compliance Section Manager FROM: Tom Rushing, P.G. 0^ el/l^/2c?/9 September 15, 2014 DATE: SUBJECT: Review ofthe August 15, 2014 Energy Fuels Resources (USA) Inc. 2nd Quarter 2014 Ground Water Monitoring Report for the White Mesa Uranium Mill Review Summary: The Utah Division of Radiation Control ("DRC") has reviewed the following documents submitted by Energy Fuels Resources (USA) Inc. ("EFR"): 1. EFR, August 15,2014, Transmittal of 2nd Quarter 2014 Groundwater Monitoring Report Groundwater Quality Discharge Permit UGW370004 White Mesa Uranium Mill. 2. EFR, August 11,2014, State oj Utah Ground Water Discharge Permit No. UGW370004 White Mesa Uranium Mill - Notice Pursuant to Part I.G.I (a). 3. EFR, August 11,2014, State of Utah Ground Water Discharge Permit No. UGW3 70004, White Mesa Uranium Mill - Removal of Certain Groundwater Monitoring Parameters from Accelerated Monitoring Status. 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 ofthe 2nd Qtr 2014 Report and Related Actions at the White Mesa Uranium Mill: 1. The 2" Quarter 2014 Report was received on August 19, 2014, which was before the due date (Permit Part I.F.I the due date was September 1, 2014). 2. 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 Utah Division of Radiation Control (DRC). Per DRC staff discussions: The May 25, 2012 request will be included with the White Mesa Mill Ground Water Permit Renewal. DRC review ofthe 2nd Quarter 2014 Report recognizes the telephone agreements regarding timelines for EFR to submit compliance notices. The modification request is currently being addressed through the Permit renewal process. EFR 2nd Quarter 2014 Groundwater Monitoring Report Page 2 3. DRC 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 DRC review findings as documented in a DRC 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 2nd Quarter 2014 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. 4. Laboratory QA/QC flags were documented in the review period analytical data reports from the contract laboratories. Per DRC review (Section 8 Below) it appears that all discrepancies were self-reported by EFR and that none of the discrepancies were violations of the Permit or the Quality Assurance Plan ("QAP"). 5. Four compliance parameters went into accelerated monitoring frequency during the monitoring period. Gross Alpha in monitoring well MW-27 was accelerated from semi- annual to quarterly based on an exceedance of the GWCL during the 2nd Quarter 2014; Cadmium, Uranium and Vanadium in monitoring well MW-28 were accelerated from semi-annual to quarterly based on exceedances of the GWCL during the 2nd Quarter 2014. 2. Accelerated Monitoring and POC Wells Exceeding GWCL's: When a monitoring well has a pollutant that exceeds a Ground Water Compliance Limit (GWCL) set forth in Table 2 of the Permit, it is in Probable Out-of-Compliance (POOC) status. According to the Permit, EFR is then required to immediately initiate accelerated sampling of that pollutant (see the Permit, Part I.G. 1). When monitoring wells have parameters that have exceeded the Ground Water Compliance Limit (GWCL) two or more consecutive times they are in Out-of-Compliance (OOC) status (see the Permit, Part I.G.2). In the event a constituent is in OOC status, EFR is required to prepare and submit within 30 calendar days to the Director a plan and 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 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 DRC review; lsl Qtr., 2nd Qtr., and 3rd Qtr. 2011 Groundwater Monitoring Reports, 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 monitoring at well MW-35. EFR stated in a March 26, 2012 response to the NOED that based on an agreement made between DRC 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 DRC 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. EFR 2nd Quarter 2014 Groundwater Monitoring Report Page 3 DRC 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 DRC review and is pending inclusion in the Permit renewal. In the interim, DRC is honoring the teleconference agreements and is not pursuing Permit enforcement based on EFR failure to meet the current time and schedule submission requirements as stated in the Permit. 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 Fluoride Uranium Chloride 4m Quarter 2010 3rd Quarter 2013 3rd Quarter 2010 Is' Quarter 2013 February 2013 December 2013 March 2014 June 2013 MW-26(a) Class III water C-2 Field pH Nitrate + Nitrite (as N) Chloroform Uranium Chloride Dichloromethane Carbon Tetrachloride February 2010 February 2010 February 2010 February 2010 February 2010 April 2010 1st Qtr 2014 May 2010 May 2010 May 2010 May 2010 May 2010 June 2010 June 2014 MW-30 Class II water D-2 Nitrate + Nitrite (as N) Chloride Selenium Uranium February 2010 1st Quarter 2011 April 2010 4th Quarter 2011 May 2010 May 2011 July 2010 March 2014 MW-31 Class III water D-2 Nitrate + Nitrite (as N) Chloride Sulfate TDS Selenium Field pH February 2010 1st Quarter 2011 4th Quarter 2010 September 2010 3rd Quarter 2012 February 2014 May 2010 May 2011 March 2011 January 2011 December 2012 June 2014 MW-35 Class II C-4B Uranium Manganese Thallium Adjusted Gross Alpha Selenium 2nd Quarter 2011 2nd Quarter 2011 3rd Quarter 2011 3rd Quarter 2011 3rd Quarter 2012 July 2011 July 2011 July 2011 October 2011 December 2012 EFR 2nd Quarter 2014 Groundwater Monitoring Report Page 4 Well Class *Position Parameter Date of First Exceedance of GWCL Date Accelerated Monitoring First Required D = Down-gradient; U = Up-gradient; C = Cross-gradient; 1,2,3,4A = Cell # a = Monitoring well MW-26 is a pumping well for the Chloroform investigation Wells Monitored Semi-annually Accelerated to Quarterly Monitoring Well Class * Position Parameter Date of First Exceedance of GWCL Date Accelerated Monitoring First Required MW-1 Class II water U-l Tetrahydrofuran Sulfate Manganese 4m Quarter 2012 4,h Quarter 2012 4th Quarter 2012 1st Quarter 2013 1st Quarter 2013 Is' Quarter 2013 3~"rQuarter 2010 3rd Quarter 2010 3rd Quarter 2010 MW-3 Class III water D-4A Selenium Field pH Fluoride Nitrate + Nitrite (as N) Sulfate 2^Quarter 2010 2nd Quarter 2010 2nd Quarter 2010 4th Quarter 2013 4th Quarter 2013 2nd Quarter 2014 2nd Quarter 2014 MW-3A Class III water D-4A Field pH Sulfate TDS Selenium Nitrate + Nitrate (as N) ^Quarter 2010 2nd Quarter 2010 3ra Quarter 2010 3rd Quarter 2010 3rd Quarter 2010 1st Quarter 2011 Is' Quarter 2013 2nd Quarter 2010 4th Quarter 2010 4lh Quarter 2012 MW-5 Class II water D-3 Uranium 4'" Quarter 2010 Is'Quarter 2011 MW-12 Class III water D-3 Selenium Field pH i^Quarter 2010 Is'Quarter 2014 3™ Quarter 2010 2nd Quarter 2014 ^Quarter 2012 4th Quarter 2013 MW-15 Class III water D-4A Selenium Field pH 3ra Quarter 2012 2nd Quarter 2014 MW-18 Class III water U- Thallium Sulfate TDS Field pH 2^ Quarter 2010 2nd Quarter 2010 2nd Quarter 2010 Is'Quarter 2014 3™ Quarter 2010 3rd Quarter 2010 3rd Quarter 2010 2nd Quarter 2014 MW-19 Class III water U-l Field pH Nitrate + Nitrite as N Adjusted Gross Alpha ^Quarter 2010 4,h Quarter 2011 4th Quarter 2012 3™ Quarter 2010 1st Quarter 2012 Quarter 2013 3"^ Quarter 2010 MW-23 Class III water D-3 Field pH 2^ Quarter 2010 3ia~Quarter 2010 3rd Quarter 2010 3rd Quarter 2010 ,st Quarter 2013 MW-24 Class III water D-1 Cadmium Thallium Field pH Fluoride f5 Quarter 2010 2nd Quarter 2010 2nd Quarter 2010 4Ul Quarter 2012 ^Quarter 2010 4th Quarter 2010 1st Quarter 2010 1st Quarter 2010 2nd Quarter 2013 S^Quarter 2010 4th Quarter 2014 3 rd Quarter 2010 3rd Quarter 2010 Is' Quarter 2014 MW-27 Class III water U- Nitrate +Nitrite (as N) Adjusted Gross Alpha TDS Chloride Sulfate ^Quarter 2014 3 rd Quarter 2010 3rd Quarter 2012 2nd Quarter 2014 MW-28 Class III water D-1 Field pH Chloride Manganese Cadmium 1st Quarter 2014 2nd Quarter 2010 2nd Quarter 2012 2nd Quarter 2014 EFR 2nd Quarter 2014 Groundwater Monitoring Report Page 5 Well Class •Position Parameter Date of First Exceedance of GWCL Date Accelerated Monitoring First Required Uranium Vanadium 2nd Quarter 2014 2nd Quarter 2014 2^ Quarter 2014 2nd Quarter 2014 2~™rQuarter2011 3rd Quarter 2012 3rd Quarter 2012 MW-29 Class III water D-2 Field pH Manganese TDS 4,n Quarter 2010 2nd Quarter 2012 2nd Quarter 2012 MW-32 Class III water C-2 Adjusted Gross Alpha Field pH 2^ Quarter 2010 2nd Quarter 2010 3rd Quarter 2010 3rd 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 Monitoring Wells in Accelerated Status as of the second quarter of 2014. EFR is required to notify the DRC on a quarterly basis regarding wells and parameters which went into accelerated monitoring during the period [Part I.G. 1(a), Accelerated Monitoring Status Reports (AMSR)]. For the 2nd quarter 2014 monitoring, the AMSR and follow up Plan and Time Schedule [Required by the Permit Part I.G.4(d)] was received, dated August 11, 2014 (received by DRC on August 13,2014). Four parameters with new exceedances were noted per review of the AMSR; MW-28 was accelerated from semi-annual to quarterly based on 2nd Quarter 2014 exceedances of the Cadmium, Uranium, and Vanadium GWCLs; MW-27 was accelerated from semi-annual to quarterly based on a 2nd Quarter 2014 exceedance ofthe field pH GWCL. DRC notes that monitoring well MW-28 was damaged prior to groundwater sampling, and that exceedances of cadmium, uranium and vanadium may be the result of contamination after the damage. It was noted that concentrations of arsenic, cadmium and manganese in the well were also higher than historical concentrations, although not in exceedance of GWCL's. EFR is required to submit a plan and time schedule report within 30 days of the accelerated monitoring report ("AMSR") if a parameter exceeds the GWCL in two consecutive monitoring events. DRC will review issues regarding MW-28 contamination, monitoring well damage and repair when reviewing reports related to those issues. EFR Request to Return Monitoring Well MW-28 Manganese, MW-29 Manganese, and MW-25 Fluoride, to Baseline Monitoring Frequency: Per the EFR August 11, 2014 Request, EFR provides information regarding compliance monitoring at wells MW-28 for manganese, MW-29 for manganese and well MW-25 for fluoride. These wells/parameters are currently required to be sampled on an accelerated basis due to OOC status (see table above). MW-28 Manganese The August 11, 2014 request for monitoring frequency reduction for manganese in MW-28 states that monitoring results "have been below the Groundwater Compliance Limit ('GWCL "J specified in the GWDP for eight consecutive sampling events since Q2 2012'." Per DRC review of the request and past sampling result it appears that the last eight consecutive accelerated samples for manganese in monitoring well MW-28 have been below the GWCL. Based on past approvals of return to baseline monitoring, this request is consistent and return to baseline monitoring is appropriate. EFR 2nd Quarter 2014 Groundwater Monitoring Report Page 6 MW-29 Manganese The EFR August 11, 2014 request for monitoring frequency reduction for manganese in MW-29 is likewise based on the eight most recent consecutive monitoring results showing concentrations below the GWCL. Per DRC review of the monitoring results it appears that return to baseline monitoring frequency is appropriate. MW-25 Fluoride The EFR August 11, 2014 request for monitoring frequency reduction for fluoride in MW-25 is likewise based on the eight most recent consecutive monitoring results showing concentrations below the GWCL. Per DRC review of the monitoring results it appears that return to baseline monitoring frequency is appropriate. Therefore, the wells/parameters and monitoring frequencies listed on the table below are recommended to be approved. Well:No3§|#«tgff^;. Parameter Baseline MohT^rinjg Fr^uericyl;^^ MW-28 Manganese Semi-Annual MW-29 Manganese Semi-Annual MW-25 Fluoride Quarterly 3. Monitoring Wells Purged for Two Casing Volumes Before Sample Collection: As stated in Section 6.2.7 of the EFR Quality Assurance Plan (QAP), Rev. 7.2, EFR has a choice regarding purge volumes as follows: "7. 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 DRC review of the Report, the following purge methods were used during the 2nd Quarter 2014 (including accelerated samples): Quarter # Purged 2 Casing Volumes # Purged to Dryness # Purged 3 Casing Volumes 2"* Qtr. 2014 33 5 3-continuous pumping well 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 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 volumes (when 2 casing volume method selected) in monitoring wells prior to sample collection during the 2nd Quarter 2014 monitoring period. Volumes are calculated according to measured pump rates and can be verified by calibration marks on the collection carboys. 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. EFR 2 Quarter 2014 Groundwater Monitoring Report Page 7 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 of pH, 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 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." DRC staff verified that in cases where the monitoring well was evacuated to dryness, the number of gallons evacuated was recorded in compliance with the QAP. Also, DRC staff verified that depth to groundwater was measured and recorded (comments field) on the field sheet. 4. Relative Percentage Difference Calculations and Radiological Comparisons for Blind Duplicate Analysis: DRC conducted a review of the blind duplicate samples collected during the 2nd Quarter 2014. 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 (4 total during the quarterly event - two with the baseline samples and two with the accelerated samples). 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 DRC cross check of the blind duplicate samples collected and analyzed during the 2nd Qtr. 2014 (See Appendix 1 for comparisons), all sample results conform to the Permit requirements (within 20% RPD) with the exception of Uranium in the MW-25/MW-65 April monthly sample and Thallium in the MW- 35/MW-65 May monthly sample. EFR 2nd Quarter 2014 Groundwater Monitoring Report Page 8 Thallium Nonconformance Blind Duplicate MW-35/MW-65 EFR noted that in the case of Thallium in MW-35/M W-65, no additional action was taken since the duplicate results are not greater than 5 times the required detection limits. Per DRC review of the results this was confirmed. Per Part 9.1.4.a. of the QAP "RPDs will be calculated in comparisons of duplicate and original field sample results. Non-conformance will exist when the RPD > 20%, unless the measured activities are less than 5 times the required detection limit (Standard Methods, 1998)." The sample result for thallium in MW-35 was 0.000521 ug/L, and the sample result for duplicate MW-65 was 0.000672 ug/L. The reporting limit, per the American West Laboratory Data Sheet was 0.0005 ug/L (5 X RL = 0.0025 pg/L). Therefore the blind duplicate meets conformance by the result being less than 5 times the reporting limit. Uranium Nonconformance Blind Duplicate MW-25/MW-65 The uranium blind duplicate results were outside of acceptance limits and EFR therefore implemented corrective actions in conformance with the requirements of the QAP. Per the 2nd Quarter 2014 Report: "The corrective actions that were taken in accordance with the QAP procedure are as follows: the QA Manager contacted the Analytical Laboratory and requested a review of the raw data to assure that there were no transcription errors and the data were accurately reported...reanalysis was not completed as the laboratory is temporarily unavailable due to a catastrophic fire suffered in early July." DRC notes that the reported concentrations for uranium in blind duplicate MW-25/MW-65 were 0.0106 mg/L and 0.00791 mg/L respectively. It is noted that the reported concentrations were above the Permit compliance limit (0.0015 mg/L), but below the Utah Ground Water Quality Standard (0.03 mg/L). Based on DRC review of the corrective actions it appears that the actions taken were appropriate (given the circumstances of the laboratory fire). 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 4th Quarter, 2013. 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 contract laboratories were certified to perform analysis for the specified parameters during the review period as follows. American West Analytical Laboratories - Salt Lake City, UT Certification Active Per the website information: American West Analytical Laboratories Type of Lab Commercial TNI Lab Code TNI01955 EPA Code UT00031 State ID 8012638686 Website Extended Details EFR 2n Quarter 2014 Groundwater Monitoring Report Page 9 Prirnary AB responsible ^ D ent of Hea,th for lab demographics 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 DRC noted that AWAL was accredited for all applicable analytes (analytes requested by EFR) and that the specific analytes were updated on September 13, 2013. GEL Laboratories LLC current Utah certification per the Utah Bureau of Health Website - National Environmental Laboratory Accreditation Management System Basic Details Name GEL Laboratories, LLC Type of Lab Commercial TNI Lab Code TN100188 EPA Code SC00012 State ID E87156 Website Extended Details Primary AB responsible pjorj(ja rj)epanTnent of Health Environmental Laboratory Certification Proaram for lab demographics r J ° GIS Location Description Comments Effective Date Commercial Samples Yes EFR 2nd Quarter 2014 Groundwater Monitoring Report Page 10 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 DRC noted that the only analyte requested by EFR to be analyzed by GEL Laboratories is gross alpha (Total Alpha Radium) and that GEL Laboratories holds current accreditation in Utah for that analyte method EPA 900.1. 6. Laboratory Report Turn Around Times: Per DRC review of EFR Table 1 included in the 2nd Qtr. 2014 Report, it was noted that laboratory report turnaround times (from date of EFR sample submission to the contract laboratory) was 30 days on average (not including re-submission/corrected reports) with the longest report turnaround time being 36 days. There is not a turnaround time requirement in the current QAP; therefore, current turnaround times are judgment based. DRC 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 DRC review the turn-around times for the 2nd Quarter 2014, data appear to be reasonable/appropriate. 7. Sample Holding Times: Per Table G-2A and Table G-2B of the Report, all holding times were met for each analyte submitted for laboratory analysis. DRC staff cross checked all holding time requirements and verified that all samples/analytes appeared to have been submitted within holding times during the 2nd Qtr. 2014 reporting period. 8. Sample Preservation: Per review of the 2nd Quarter 2014 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, no issues related to sample preservation were noted. 9. Laboratory QA/QC Flags - 2nd Quarter 2014: QA/QC issues and DRC findings for the 2nd Quarter 2014 are summarized below: EFR 2nd Quarter 2014 Groundwater Monitoring Report Page Non-Conformance Summary Self-^fe I Identified? EFR Corrective Action Summary DRC Findings Laboratory reporting limits were raised for various samples for analysis of Ca, Cl, K, Na, S04, Mg, Mn, Fluoride, TDS. Silver, Nitrate/Nitrite (as N), Iron, Fluoride. 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 need for dilution. DRC verified that in all cases when the RL was raised above the QAP required RL the sample result was higher in concentration MW-1, MW-18-Gross Alpha Counting Error was not < 20% of the sample analysis result (sample activity) 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-32 Nitrate/Nitrite, MW-05, Magnesium, MW-12, Chloride, Fluoride, Sulfate, MW-22, Ammonia, MW-23, Nitrate/Nitrite. 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-20 TDS. Y The recoveries and RPD's above the acceptance limits do not affect the quality or usability of the data because the recoveries and RPD's above the acceptance limits are indicative of matrix interference most likely caused by other constituents in the samples. Per the facility QAP, the duplicate spike (matrix spike) sample serves as a check evaluating the effect of the sample matrix on the accuracy of analysis. The QAP requires that the matrix spike samples be run according to state certified laboratory procedures but does not specify enforcement requirements for samples outside of the acceptance criteria. DRC notes that the laboratory reported the data with a listed qualifier. Note: DRC reviewed the holding time summary chart; no exceedances of holding times were noted DRC 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.I .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. DRC 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 EFR 2nd Quarter 2014 Groundwater Monitoring Report Page 12 included on the plots (no data culled from the set). Per DRC review ofthe 2nd Qtr. 2014 Report, the reviewed plots appear to be in conformance with the agreed upon changes, no issues were identified. 11. Review of Depth to Groundwater Measurements and Water Table Contour Maps Per DRC cross checks of groundwater elevation measurement calculations used for the 2nd Quarter 2014, approximately 5% of wells cross checked, comparing water level 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. 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). IUC White Mesa Mill Hydrographs: Piezometers @ North Wildlife Ponds 5.622 5.818 5.614 IF *•* :•» 5.610 <>••* 5.606 *• Sti 5.602 5.598 5.594 J3~ a+-oa 5.590 5.586 72 Location Rtiattve toVWdWa Ponds North Ponds P-l (north side) P 2 (between) P-3 (soum side) 5.582 5,578 5,574 I EFR 2nd Quarter 2014 Groundwater Monitoring Report Page 13 IUC White Mesa Mill Hydrographs: Piezometers (3> South Wildlife Ponds "T" Location Relative to Wildlife Ponda SoufttPonds P-4 (norm side) P-5 (soutti side) 3^ -o-P-5 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 2nd Quarter 2014 Report include these areas which are directly southwest from the upper wildlife ponds. EFR 2n Quarter 2014 Groundwater Monitoring Report Page 14 DRC 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. Conclusions and Recommendations Based on DRC staff review ofthe above listed documents, it was noted that overall the requirements of the Permit were met by EFR and the data collected during the 1st Quarter of 2014 appears to be reliable. It is recommended that a correspondence letter be sent to EFR with the following items: 1. Advisory regarding elevated concentrations of vanadium, arsenic and uranium) in Monitoring Well MW-28 (damaged monitoring well). 2. Approval of return to baseline monitoring form manganese in MW-28, manganese in MW-29, and fluoride in MW-25. 3. Close out regarding DRC review of the 2nd Quarter 2014 White Mesa Uranium Mill Groundwater Monitoring Report, based on findings above. 13. References 1 Energy Fuels Resources (USA) Inc., August 15, 2014, 2nd Quarter2014 Groundwater Monitoring Report, Groundwater Discharge Permit UGW370004, White Mesa Uranium Mill. 2 Energy Fuels Resources (USA) Inc., August 11, 2014, State of Utah Ground Water Discharge Permit No. UGW3 70004 White Mesa Uranium Mill - Notice Pursuant to Part I.G.I (a). 3 Energy Fuels Resources (USA) Inc., August 11, 2014, State of Utah Ground Water Discharge Permit No. UGW370004 White Mesa Uranium Mill - Removal of Certain Groundwater 4 Energy Fuels Resources (USA) Inc., June 6, 2012, White Mesa Uranium Mill Ground Water Monitoring Quality Assurance Plan (QAP), Revision 7.2. 5INTERA Incorporated, 2007, Revised Background Groundwater Quality Report: Existing Wells for Dension Mines (USA) Corp. 's White Mesa Uranium Mill Site, San Juan County, Utah. 6 INTERA Incorporated, 2007, Background Groundwater Quality Report: New Wells for Denison Mines (USA) Corp. 's White Mesa Uranium Mill Site, San Juan County, Utah. 1 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. 8 Utah Department of Environmental Quality, August 24, 2012, Utah Ground Water Discharge Permit, Permit No. UGW370004 issuedfor the Energy Fuels Resources (USA) Inc. White Mesa Uranium Mill. Appendix 1 - EFR Blind Duplicates, DRC RPD Calculations • ENERGY.FUELS RESOURCES BLIND DUPLICATE1 ANALYSiS^, ;.,o># -I Date.;6f Da^§^ Facility Name:?};': i-Well Number " jgarameterlj Energy Fuels Resources - Entry;;.^• 25-Aug-14 MW:35 (Blind Duplicate MW-65) ^f^^^^l^^i^^^i ^mple.Date^; MW-35 Sample; :j, Bnrtd;Dupli&ate| Result,rng/L - Relative Perqen^ Calcium 6/4/2014 518 533 -2.9 Iron 6/4/2014 81.3 87.4 -7 2 Magnesium 6/4/2014 173 173 0.0 Manganese 6/4/2014 202 205 -1 5 Potassium 6/4/2014 11.6 11 9 -2.6 Selenium 6/4/2014 139 142 -2 1 Sodium 6/4/2014 386 396 -2.6 Uranium 6/4/2014 21 9 22 4 -2.3 Ammonia 6/4/2014 0 0778 0 0831 -6.6 Bicarbonate 6/4/2014 340 360 -5.7 Chloride 6/4/2014 62.6 59 4 52 Fluoride 6/4/2014 0 35 0.347 09 Sulfate 6/4/2014 2040 1960 40 Gross Alpha 6/4/2014 3 36 4 17 -21 5 Total Dissolved Solids 6/4/2014 3720 3,880 -4 2 Facility Name: Well Number Parameter •ENERGY,FUELS RESOURCES BLIND DUPLICATE ANALYSIS.^k*';' *; :Mi 25-Aug-14 5 Date of Data Energy Fuels Resources :' Entry: -; MW-22 (Blind Duplicate MW-70) '•1 ' " ':"" V ; "'7 [MW-22 Sample*., Blind Duplicate ; Relative percent Sampled Date Result mg/L • Analysis MW-70 • , Difference (RPD) Calcium 6/11/2014 400 416 -3 9 Beryllium 6/11/2014 152 158 -3.9 Cadmium 6/11/2014 169 170 -0.6 Cobalt 6/11/2014 513 525 -2 3 Copper 6/11/2014 120 121 -0 8 Iron 6/11/2014 69 4 78 3 -12.1 Lead 6/11/2014 6 29 6.54 -3 9 Magnesium 6/11/2014 1120 1180 -5.2 Manganese 6/11/2014 46500 50400 -8.0 Molybdenum 6/11/2014 183 187 -2 2 Nickel 6/11/2014 316 321 -1.6 Potassium 6/11/2014 20.9 21.5 -2.8 Selenium 6/11/2014 16.9 18 -6 3 Sodium 6/11/2014 267 274 -2.6 Thallium 6/11/2014 1.44 1.46 -1 4 Uranium 6/11/2014 31 9 31.9 00 Zinc 6/11/2014 1470 1530 -4 0 Ammonia 6/11/2014 0 534 0.652 -19.9 Bicarbonate 6/11/2014 12.5 143 -134 Chloride 6/11/2014 54 9 54 8 02 Page 17 Fluoride 6/11/2014 14.5 14.4 07 Nitrate/Nitrite 6/11/2014 2 97 2 96 0.3 Sulfate 6/11/2014 6950 6830 1 7 Gross Alpha 6/11/2014 3.57 3.39 5.2 Total Dissolved Solids 6/11/2014 8560 8,480 0.9 . ENERGY FUEL^^^gl^g Facility Name: Energy Fuels Resources •Well Number : MW-25 (Blind Duplicate MW-65) * \ - "" " MW-25 Sample Parameter . ; * *. Sample Date ;; Result mg/L JND DUPLICATE ANALYSIS; Date of Data . Entry: < Blind: Duplicate : Relative Percent Analysis MW-65 '; Difference (RPD) mm 25-Aug-14 Cadmium 4/28/2014 1 51 1.8 -17.5 Chloride 4/28/2014 31 31.6 -1.9 Fluoride 4/28/2014 0 409 0.446 -8.7 Uranium 4/28/2014 106 7.91 29 1 ENERGY FUELS RESOURCES BLIND DUPLICATE ANALYSIS Facility Name: Well Number: Parameter Energy Fuels Resources MW-35 (Blind Duplicate MW-65) .;:;!V.MW:35 Sample Sample Date^f* Result mg/L .' j . bate of Data Entry: Blind Duplicate Analysis MW-65 25-Aug-14 ' Relative Rercenf;| Difference.(RPpj^#. Ill mi Manganese 5/14/2014 249 226 9.7 Selenium 5/14/2014 17 155 92 Thallium 5/14/2014 0 521 0 672 -25.3 Uranium 26 9 27.8 -3.3 Gross Alpha 5/14/2014 3 67 5.38 -37.8