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HomeMy WebLinkAboutDRC-2016-011190 - 0901a0688068148bVRC-ZDIb-Ptlffi) MEMORANDUM TO: THROUGH FROM: DATE: SUBJECT: Review of the Energy Fuels Resources (USA) Inc. 2nd Quarter 2016 Ground Water Monitoring Report for the White Mesa Uranium Mill Review Summary: The Utah Division of Waste Management and Radiation Control (“DWMRC”) has reviewed the following documents submitted by Energy Fuels Resources (USA) Inc. (“EFR”): 1. EFR August 18,2016, Transmittal of 2n<‘ Quarter 2016 Groundwater Monitoring Report Groundwater Quality Discharge Permit UGW370004 White Mesa Uranium Mill. 2. EFR, August 5, 2016, State of Utah Ground Water Discharge Permit No. UGW370004 White Mesa Uranium Mill - Notice Pursuant to Part I. G. 1 (a). 3. EFR August 19,2016, 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 of the 2nd Otr. 2016 Report and Related Actions at the White Mesa Uranium Mill: Phil Goble, Manager ^ jfl tt/i/U Tom Rushing, P.G. November 2, 2016 State of Utah GARY R. HERBERT Governor SPENCER J COX Lieutenant Governor Department of Environmental Quality Alan Matheson Executive Director DIVISION OF WASTE MANAGEME1 AND RADIATION CONTROL Scott T. Anderson Director 1. The 2nd Quarter 2016 Report was received on August 23, 2016, which was before the due date (Permit Part I.F.l - due date of September 1, 2016). 2. DWMRC notes that samples were analyzed by American West Analytical Laboratories (“AWAL”) with the exception of Gross Radium Alpha which was analyzed by GEL Laboratories EEC, Charleston, South Carolina. DWMRC verified that the laboratories have current Utah certification for all parameters/methods used. No deviations/violations of the currently approved Quality Assurance Plan for the White Mesa Uranium Mill were noted. 3. Per a previous EFR request, a May 25, 2012 EFR Permit modification request was made in order to document accelerated reporting and monitoring agreements made during a teleconference with the DWMRC. Per DWMRC staff discussions: The May 25, 2012 195 North 1950 West • Salt Lake City, UT Mailing Address- PO Box 144880 • Salt Lake City, UT 84114-4880 Telephone (801) 536-0200 • Fax (801)-536-0222 • T.D.D (801) 536-4414 www deq ulah gov Printed on 100% recycled paper request will be included with the White Mesa Mill Ground Water Permit Renewal. DWMRC review of the 1st Quarter 2016 Report recognizes the telephone agreements regarding timelines for EFR to submit compliance notices. The modification request is currently being addressed through the Permit renewal process. 4. DWMRC Stipulated Consent Agreement, Docket No. UGW12-03 required EFR to submit an October 10, 2012 Source Assessment Report, an April 13, 2012 pH Report, and a December 12, 2012 Pyrite Investigation Report for previously documented out-of- compliance parameters (multiple parameters). Per DWMRC review findings as documented in a DWMRC review memo dated April 23, 2013, and transmitted via letter to EFR dated April 25, 2013, it was recommended that specific GWCL parameters for monitoring wells be modified (12 instances), GWCL’s for pH be modified for all monitoring wells, and that GWCL’s be removed from the permit for three up-gradient monitoring wells. These requests are currently being addressed through the Permit Renewal process. Review of the 2nd Quarter 2016 Report is based on current Permit GWCL’s, modified GWCLs are required to undergo public notice requirements per the Utah Administrative Code and listed in an active Permit. 5. Permit compliance limits for monitoring wells around the White Mesa Mill Tailings Cell 4B (Monitoring Wells MW-35, MW-36 and MW-37) were approved by the Director via letter dated July 15, 2014. The approval was based on DWMRC staff review of a May 1, 2014 EFR Background Groundwater Quality Report for the wells. The approved GWCL’s will not be enforceable until final inclusion in the renewal permit; therefore, the 2nd Quarter 2016 Report data results were compared with the interim limits or groundwater quality standards as listed in the currently active Permit. 6. Laboratory QA/QC flags were documented in the review period analytical data reports from the contract laboratories. Per DWMRC review it appears that all discrepancies were self-reported by EFR. 7. Two compliance parameters went into accelerated monitoring frequency during the monitoring period (Manganese and Tetrahydrofiiran in Monitoring Well MW-3), as discussed below. 8. Monitoring well MW-3 groundwater contaminant concentrations have been noted to be highly variable and unpredictable during recent monitoring events including the most recent 2nd Quarter 2016 results. Per the 2nd Quarter Monitoring Report and the EFR August 5, 2016 Notice Pursuant to Part I.G.l(a) it was reported that manganese and tetrahydrofuran are now in out of compliance status at monitoring well MW-3, and MW-3 is still in out of compliance for other parameters including selenium, field pH, fluoride, nitrate + nitrite, sulfate, beryllium, cadmium, zinc, and thallium. These concentration fluctuations are likely due to efforts to isolate a section of blank casing below the monitoring well screened interval using a well packer at the bottom of the screened interval. It is likely that the well packer material, although purportedly inert material, is reacting and causing fluctuating concentrations of pollutants. DWMRC has been aware of the poor well construction issues at MW-3, and, per past communication, a replacement well, well MW-3A was installed in close proximity to MW-3 in order to determine if the inconsistent results were valid. Based on eleven years of monitoring results for monitoring well MW-3A it has been determined that the exceedances at monitoring well MW-3 are likely due to poor well construction, and, that based on historical contaminants found in this well, including organic chemicals (THF) that monitoring well MW-3 should be plugged and abandoned according to current State requirements for well abandonment (Utah Administrative Code R655-4-14) by a licensed well driller. EFR 2nd Quarter 2016 Groundwater Monitoring Report DWMRC Review Memo Page 2 EFR 2nd Quarter 2016 Groundwater Monitoring Report DWMRC Review Memo Page 3 2. Accelerated Monitoring and POC Wells Exceeding GWCL’s: When a monitoring well has a pollutant that exceeds a Ground Water Compliance Limit (GWCL) set forth in Table 2 of the Permit, it is in Probable Out-of-Compliance (POOC) status. According to the Permit, EFR is then required to immediately initiate accelerated sampling of that pollutant (see the Permit, Part I.G.l). When monitoring wells have parameters that have exceeded the Ground Water Compliance Limit (GWCL) two or more consecutive times they are in Out-of-Compliance (OOC) status (see the Permit, Part I.G.2). In the event a constituent is in OOC status, EFR is required to prepare and submit within 30 calendar days to the Director a plan and time schedule for assessment of the sources, extent and potential dispersion of the contamination, and an evaluation of potential remedial action to restore and maintain groundwater quality to ensure that Permit limits will not be exceeded at the compliance monitoring point and that DMT or BAT will be re-established, in accordance with Part I.G.4(c) of the Permit. Accelerated Monitoring Requirement Exception: Per past DWMRC review; Is1 Qtr., 2nd Qtr., and 3rd Qtr. 2011 Groundwater Monitoring Reports, DWMRC issued a February 7, 2012 Notice of Enforcement Discretion (“NOED”) for failure on the part of EFR to comply with these timelines for acceleration of groundwater monitoring at well MW-35. EFR stated in a March 26, 2012 response to the NOED that based on an agreement made between DWMRC and EFR during a telephone conference call on April 5, 2010, EFR is not required to implement accelerated monitoring until “the month following the submission of the Exceedance Notice for a specified quarter.” Based on DWMRC review of notes taken during the April 5, 2010 telephone conference (Loren Morton 4/5/10), EFR verbally requested to wait until the end of the quarter to submit the notice of out-of compliance status - but within 30 days of the last lab report that EFR receives for the quarterly monitoring event. DWMRC notified EFR by letter (dated April 16, 2012) that in order to formalize the April 5, 2010 discussion items related to out-of-compliance reporting and sampling, a written request for a groundwater permit modification (groundwater permit, out-of-compliance notification and accelerated monitoring requirements) was required for Director review and approval. EFR submitted a May 25, 2012 written request for a Permit modification, including redline copies of pertinent pages of the Permit to reflect the agreements made during the April 5, 2010 conference call. The Permit modification request is currently under DWMRC review and is pending inclusion in the Permit Renewal. In the interim, DWMRC is honoring the teleconference agreements and is not pursuing Permit enforcement based on any instances of EFR failure to meet the current time and schedule submission requirements stated in the Permit. Current Accelerated Monitoring Status: The table below (Table 1) lists monitoring wells with parameters currently in OOC or POOC status and therefore required to be sampled under the accelerated monitoring requirements: EFR 2nd Quarter 2016 Groundwater Monitoring Report DWMRC Review Memo Page 4 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 Uranium Chloride Cadmium 4th Quarter 2010 1st Quarter 2016 1st Quarter 2013 1st Quarter 2016 February 2013 April 2016 June 2013 April 2016 MW-26(a)Class III water C-2 Field pH Nitrate + Nitrite (as N) Chloroform Uranium Chloride Dichloromethane February 2010 February 2010 February 2010 February 2010 February 2010 April 2010 May 2010 May 2010 May 2010 May 2010 May 2010 June 2010 MW-30 Class II water D-2 Nitrate + Nitrite (as N) Chloride Selenium Uranium Field pH Ammonia Fluoride February 2010 1st Quarter 2011 April 2010 4th Quarter 2011 4th Quarter 2014 4th Quarter 2014 4th Quarter 2015 May 2010 May 2011 July 2010 March 2014 March 2015 March 2015 March 2016 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 Field pH 2nd Quarter 2011 2nd Quarter 2011 3rd Quarter 2011 3rd Quarter 2011 3rd Quarter 2012 July 2011 July 2011 July 2011 July 2011 October 2011 December 2012 August 2011 D = Down-gradient; U = Up-gradient; C = Cross-gradient; 1,2,3,4A = Cell # a = Monitoring well MW-26 is a pumping well for the Chloroform investigation Wells Monitored Semi-annually Accelerated to Quarterly Monitoring Well Class *Position Parameter Date of First Exceedance of GWCL Date Accelerated Monitoring First Required MW-1 Class II water U-l Field pH Sulfate Chloride 3rd Quarter 2014 4th Quarter 2012 2nd Quarter 2015 1st Quarter 2015 1st Quarter 2013 1st Quarter 2016 MW-3 Class III water D-4A Selenium Field pH Fluoride 2nd Quarter 2010 2nd Quarter 2010 2nd Quarter 2010 3 rd Quarter 2010 3rd Quarter 2010 3rd Quarter 2010 EFR 2nd Quarter 2016 Groundwater Monitoring Report DWMRC Review Memo Page 5 Well Class *Position Parameter Date of First Exceedance of GWCL Date Accelerated Monitoring First Required Nitrate + Nitrite (as N) Sulfate Zinc Thallium Cadmium Beryllium Tetrahydrofuran Manganese 4th Quarter 2013 4th Quarter 2013 2nd Quarter 2015 4th Quarter 2015 2nd Quarter 2015 2nd Quarter 2015 2nd Quarter 2016 2nd Quarter 2016 2nd Quarter 2014 2nd Quarter 2014 1st Quarter 2016 3rd Quarter 2016 1st Quarter 2016 1st Quarter 2016 3rd Quarter 2016 3rd Quarter 2016 MW-3A Class III water D-4A Field pH Sulfate TDS Selenium Nitrate + Nitrate (as N) 2nd Quarter 2010 2nd Quarter 2010 2nd Quarter 2010 4th Quarter 2010 4th Quarter 2012 3rd Quarter 2010 3rd Quarter 2010 3 rd Quarter 2010 1st Quarter 2011 1st Quarter 2013 MW-5 Class II water D-3 Uranium 4th Quarter 2010 1st Quarter 2011 MW-12 Class III water D-3 Field pH Selenium 1st Quarter 2014 4th Quarter 2014 2nd Quarter 2014 2nd Quarter 2015 MW-15 Class III water D-4A Selenium Field pH 2nd Quarter 2012 4lh Quarter 2013 3rd Quarter 2012 2nd Quarter 2014 MW-18 Class III water U-l Thallium Sulfate TDS Field pH 2nd Quarter 2010 2nd Quarter 2010 2nd Quarter 2010 1st Quarter 2014 3rd Quarter 2010 3rd Quarter 2010 3rd Quarter 2010 2nd Quarter 2014 MW-19 Class III water U-l Field pH Nitrate + Nitrite as N 2nd Quarter 2010 4th Quarter 2011 3rd Quarter 2010 1st Quarter 2012 MW-24 Class III water D-l Cadmium Thallium Field pH Fluoride Sulfate 2nd Quarter 2010 2nd Quarter 2010 2nd Quarter 2010 4th Quarter 2012 4th Quarter 2014 3rd Quarter 2010 3rd Quarter 2010 3rd Quarter 2010 1st Quarter 2013 2nd Quarter 2015 MW-27 Class III water U-l Nitrate + Nitrite (as N) Adjusted Gross Alpha TDS Chloride Sulfate Field pH 2nd Quarter 2010 4th Quarter 2010 1st Quarter 2010 1st Quarter 2010 2nd Quarter 2013 4,h Quarter 2015 3rd Quarter 2010 4th Quarter 2014 3rd Quarter 2010 3rd Quarter 2010 1st Quarter 2014 3 rd Quarter 2016 MW-28 Class III water D-l Field pH Chloride Cadmium Uranium Vanadium 1st Quarter 2014 2nd Quarter 2010 2nd Quarter 2014 2nd Quarter 2014 2nd Quarter 2014 2nd Quarter 2014 3rd Quarter 2010 2nd Quarter 2014 2nd Quarter 2014 2nd Quarter 2014 MW-29 Class III water D-2 Field pH TDS Sulfate 4th Quarter 2010 2nd Quarter 2012 2nd Quarter 2015 2nd Quarter 2011 3 rd Quarter 2012 1st Quarter 2016 MW-32 Class III water C-2 Adjusted Gross Alpha Field pH Chloride 2nd Quarter 2010 2nd Quarter 2010 1st Quarter 2015 3rd Quarter 2010 3 rd Quarter 2010 2nd Quarter 2014 * D = Down-gradient; U = Up-gradient; C = Cross-gradient; 1, 2, 3, 4A = Cell # Table 1 above is a comprehensive list of all Groundwater Monitoring Wells in Accelerated Status as of the 2nd quarter of 2016. EFR is required to notify the DWMRC on a quarterly basis regarding wells and parameters which went into accelerated monitoring during the period [Part I.G.l(a), Accelerated Monitoring Status Reports (AMSR)]. For the 1st quarter 2016 monitoring, the AMSR and follow up Plan and Time Schedule [Required by the Permit Part I.G.4(d)] was received, dated August 5, 2016 (received by DWMRC on August 9, 2016). Two parameters with new exceedances were noted per review of the AMSR: MW-3 was accelerated from Quarterly to monthly based on 2nd Quarter 2016 exceedance of the Tetrahydrofuran (THF) and Manganese GWCL’s. Monitoring well MW-3 has been noted to have been poorly constructed as evidenced by fluctuating concentrations (e.g. Zinc, Manganese, THF) in past monitoring events. Monitoring well MW- 3A was constructed in 2005, as a replacement for well MW-3. In order to verify that the observed concentration fluctuations in monitoring well MW-3 were due to well construction, both wells MW-3 and MW-3A have been monitored. Based on relatively stable concentrations in MW-3A it is likely that issues at MW-3 are being caused by the blank casing below the well screen. Based on these findings it is recommended that monitoring well MW-3A be used as a replacement for monitoring well MW-3 and that MW-3 be plugged and abandoned according to requirements in Utah Natural Resources, Water Rights Rules for Water Wells, Utah Administrative Code R655-4-14 under the direction of a licensed well driller. Since monitoring well MW-3 has been found to contain organic contaminants (TFIF) it is recommended that the well casing be removed from the well to ensure that any filter materials used for the well screen are appropriately grouted and sealed as part of the abandonment procedure (R655-4-14.8 and R655-4-14.10). 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 DWMRC review of the Report, the following purge methods were used during the 2nd Quarter 2016 (including accelerated samples). Purge methods and volumes are summarized on Table G-l A of the 2nd Quarter 2016 Monitoring Report: EFR 2nd Quarter 2016 Groundwater Monitoring Report DWMRC Review Memo Page 6 Quarter # Purged 2 Casing Volumes # Purged to Dryness | # Purged 3 Casing Volumes | 2nd Qtr. 2016 33 5 3 When purging two casing volumes, EFR QAP Rev. 7.2 directs EFR to first calculate the amount of time to evacuate two casing volumes and then pump for that length of time. Per DWMRC cross-check of the field data sheets for each of the reports reviewed, it appears EFR correctly calculated the well casing volumes and evacuated the required two volumes (when 2 casing volume method selected) in monitoring wells prior to sample collection during the 1st Quarter 2015 monitoring period. Volumes are calculated according to measured pump rates and can be verified by calibration marks on the collection containers. During the 2nd Quarter of 2016 monitoring five wells were pumped or bailed to dryness. In cases where wells are evacuated to dryness the QAP Rev. 7.2 requires that: “(vii) If the well is purged to dryness: Record the number of gallons purged on the Field Data Worksheet. The well should be sampled as soon as a sufficient volume of groundwater is available to fill sample containers. Upon arrival at the well after recovery or when sufficient water is available for sampling measure depth to water and record on the Field Data Worksheet. Take one set of measurements offield parameters for pH, specific conductance and temperature only. Collect the samples into the appropriate sample containers. Take an additional set of measurements offield parameters for pH, specific conductance and temperature after the samples have been collected. If the field parameters ofpH, specific conductance and temperature are within 10% RPD the samples can be shipped for analysis. If the field parameters 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 submitted for analysis. ” DWMRC staff verified that in cases where the monitoring well was evacuated to dimness and samples were collected, the number of gallons evacuated was recorded in compliance with the QAP. Also, DWMRC staff verified that depth to groundwater was measured and recorded (comments field) on the field sheet. 4. Relative Percentage Difference Calculations and Radiological Comparisons for Blind Duplicate Analysis: DWMRC conducted a review of the blind duplicate samples collected during the 2nd Quarter 2016. Per the facility QAP, one blind duplicate must be collected with each sample batch. DWMRC confirmed that one blind duplicate was collected for each batch - 4 total during the quarterly event - two with the baseline samples (MW-15/MW-65 on 4-27-16 and MW-14/MW-70 on 5-4-16) and two with the accelerated samples (MW-35/MW-65 on 4-12-16 and MW-30/MW-65 on 6-14-16). The duplicates are required to be within 20% Relative Percent Difference (RPD), unless “the measured concentrations are less than 5 times the required detection limit (Standard Methods, 1998) P 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, EFR 2nd Quarter 2016 Groundwater Monitoring Report DWMRC Review Memo Page 7 3. If the samples are still within holding time, the QA Manager may request the laboratory re-analyze the affected samples. Per DWMRC cross check of the blind duplicate samples collected and analyzed during the 2nd Qtr. 2016 sampling event all sample results conform to the Permit requirements (within 20% RPD). No additional action is required. 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 2nd Quarter, 2016. Per DWMRC review of the National Environmental Laboratory Accreditation Management System Website (cross check of laboratory certification for specific parameters) it appears that the EFR contract laboratories were certified to perform analysis for the specified parameters during the review period as follows. GEL Laboratories LLC current Utah Certification: EFR 2nd Quarter 2016 Groundwater Monitoring Report DWMRC Review Memo Page 8 Basic Details Name GEL Laboratories, LLC Type of Lab Commercial TNI Lab Code TNI00188 EPACode SC00012 State ID E87156 Website Extended Details Primary AB responsible for lab demographics Utah Department of Health GIS Location Description Comments Effective Date Commercial Samples Yes Active Yes Address 1 Type Location Company Contact JAMES B. WESTMORELAND Address 1 2040 Savage Rd Address 2 City Charleston State South Carolina Zip 29407 Country US Phone 8435568171 Fax 8437661178 Email ibw@,gel.com American West Analytical Laboratories Current Utah Certification EFR 2nd Quarter 2016 Groundwater Monitoring Report DWMRC Review Memo Page 9 Basic Details Name American West Analytical Laboratories Type of Lab Commercial TNI Lab Code TNI01955 EPACode UT00031 State ID 8012638686 Website Extended Details Primary AB responsible for lab demographics Utah Department of Health GIS Location Description Comments Effective Date Commercial Samples Yes Active Yes Address 1 Type Location t Company Contact Kyle Gross Address 1 463 West 3600 South Address 2 City Salt Lake City State Utah Zip 84115- Country US Phone 8012638686 Fax 8012638687 Email kyle@awal-labs.com DWMRC noted that the only analyte requested by EFR to be analyzed by GEL Laboratories was gross alpha (Gross Alpha Radium) and that GEL Laboratories holds current accreditation in Utah for that analyte method EPA 900.1 GFPC Modified. 6. Laboratory Report Turn Around Times: Per DWMRC review of EFR Table 1 included in the 2nd Qtr. 2016 Report, it was noted that laboratory report turnaround times (from date of EFR sample submission to the contract laboratory) for normal frequency monitoring was less than 30 days for all samples (not including re-submission/corrected reports). Per DWMRC review it was noted that EFR acted quickly to identify any deficiencies in the reports and request corrected versions. There is not a turnaround time requirement in the current QAP; therefore, current turnaround times are judgment based. DWMRC has raised concern over excessive laboratory turn-around times in the past and the Director may require a turn-around date be included in the facility QAP if any future concerns regarding analysis turnaround times are noted. Based on DWMRC review the turn-around times for the 2nd Quarter 2016, data turn-around times and EFR data review timelines appear to be reasonable/appropriate. EFR 2nd Quarter 2016 Groundwater Monitoring Report DWMRC Review Memo Page 10 7. Sample Holding Times: Per Table G-2A and Table G-2B of the Report, all method holding times were met for each analyte submitted for laboratory analysis. DWMRC staff cross checked all holding time requirements and verified that all samples/analytes appeared to be analyzed within holding times during the 2nd Qtr. 2016 reporting period. 8. Sample Preservation: Per review of the 2nd Quarter 2016 Report (Table G-3A and Laboratory Check-in Sheets) it appears that all samples required to be chilled (<6° C) met the temperature preservation requirements. Per review of the laboratory check in sheets and laboratory QA/QC, no issues related to sample preservation were noted. 9. Laboratory OA/OC Flags - 2nd Quarter 2016: QA/QC issues and DWMRC findings for the 2nd Quarter 2016 are summarized below: Non-Conformance Summary Self- Identified? EFR Corrective Action Summary DWMRC Findings ' Laboratory reporting limits were raised for various samples for analysis of Ca, Cl, K, Na, S04, Mg, Zn, TDS and, Nitrate/Nitrite (as N). Y EFR states that the raised RL’s are due to sample dilution and qualifies the data in Table G based on all sample results being above the raised RL. The EFR QAP allows for raised RL’s if due to the need for dilution. DWMRC verified that in all cases when the RL was raised above the QAP required RL the sample result was higher in concentration. Matrix Spike % recovery outside of range: MW-01 Ammonia, MW-02 Calcium, Sodium and Magnesium, MW-11 Sodium, MW-20 Calcium, Sodium and Ammonia, MW-03 Gross Alpha. Y None Per the QAP Part 8.1.2(a) matrix spikes are required but there are no requirements which would disqualify the laboratory data. Laboratory Duplicate % Recovery Comparison Outside of Range MW-01 TDS and MW-27 TDS. Y Per AWAL Data Sheet: High RPD due to suspected sample non-homogeneity or matrix interference Data was reported with a qualifier. Note: DWMRC reviewed the holding time summary chart; no exceedances of holding times were noted DWMRC reviewed the temperature check charts, all sample batches were received by the laboratory <6° C. 10. Review of Time-Concentration Plots The Permit Part I.F. 1 .g requires EFR to submit Time-Concentration Plots for each monitoring well for primary indicators of cell leakage (based on tailings cell concentrations and ground water partitioning and retardation coefficients); chloride, fluoride, sulfate and uranium. DWMRC notes that per the discussions with EFR, it was agreed to that EFR need not plot trend lines on the Time Concentration Plots and that all data is included on the plots (no data culled from the set). Per DWMRC review of the 2nd Qtr. 2016 Report, the reviewed plots appear to be in conformance with the agreed upon changes, no issues were identified. EFR 2nd Quarter 2016 Groundwater Monitoring Report DWMRC Review Memo Page 11 11. Review of Depth to Groundwater Measurements and Water Table Contour Maps Per DWMRC cross checks of groundwater elevation measurement calculations used for the 2nd Quarter 2016, approximately 5% of wells cross checked, comparing surface measured elevations minus measured static levels with plotted elevations, no errors were noted. The upper wildlife ponds at the White Mesa Mill were taken offline (pond recharge from Recapture Reservoir discontinued) during the 4th Quarter 2011 in order to re-establish groundwater contours. Hydrographs of the upper wildlife pond ground water piezometers (Water Level Elevation vs. Time) are included below. It was also noted that the static water levels in several monitoring wells close to the upper wildlife ponds showed significant decrease in water levels during recent quarterly monitoring. These declines can be attributed to natural dissipation of the area ground water mound and/or ground water pumping activities related to corrective action of nitrate and chloroform contamination plumes (development of cone of depressions around pumping wells). IUC White Mesa Mill Hydrographs: Piezometers $ Worth Wildlife Ponds 5,81$ 5,614 5810 V\ '♦A. ^*-v.1 l. i I b _ A V'K .\r^ MM** toWWdMMNmd* 5.578 p-s* <;«>>» «<s» - «*m>6 sens} .::....-------------T---i 5 $ ! i 1 1 ! i EFR 2nd Quarter 2016 Groundwater Monitoring Report DWMRC Review Memo Page 12 IUC White Mwa Mill Hydrograptis: Piezometer* Q South SS44 f *, Saunfeno* P-4 iiwefc M»)- - -7*^- ** .......................x............... 1 >---------ir—t--------- 5A3«.. - _____* A H. ..K *''■»' ' fl ! 0 **37 A .....______ \ \y A 15AM\5,535 4 X 5533 ___s'l .x --------—------------------ 5 532 __dc__ ___________________________________ 5A31 \ \ X,-------------------------- ...A______________ 5327 V _ ; s \ M **\ i | 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, TW4-1, TW4-4, TW4-11, TW4-19, TW4-20, TW4-21, TW4-37. 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. DWMRC expects that ground water elevation contours will continue to adjust in response to the pumping activities and discontinuance of recharge to the upper wildlife ponds. 12. EFR August 5,2016 Notice Pursuant to the Permit Part I.G.Hal The EFR August 5, 2016 Notice Pursuant to the Permit Part LG. 1(a) (“Notice”) discusses the status of monitoring wells and parameters in probable out-of-compliance (“POOC”) and out-of-compliance (“OOC”) status, as updated through the 2nd Quarter 2016. DWMRC notes that the Notice was submitted timely regarding currently agreed upon schedules. The Notice summarizes wells/parameters with OOC status which have been resolved by either separate corrective actions plans or approved modified GWCL’s (pending inclusion in the renewal Permit). The Notice also lists one monitoring well/2 parameters (MW-3 Manganese and Tetrahydrofuran) which went into OOC status during the 2nd Quarter 2016. Based on DWMRC review of the Notice it appears that all requirements of the Permit were met. 13. EFR August 19, 2016 Removal of Certain Groundwater Monitoring Parameters from Accelerated Monitoring Status Per the EFR August 19, 2016 Request for Removal of Certain Groundwater Monitoring Parameters from Accelerated Monitoring Status (“EFR Request”), EFR requests that four monitoring well parameters be returned to baseline monitoring. Specifically, the EFR Request addresses the following wells/parameters be returned to baseline monitoring: • MW-25/Chloride o MW-27/Sulfate and Gross Alpha • MW-3 5/Thallium EFR requests that these monitoring wells be returned to baseline monitoring based on eight consecutive sample results below the GWCL. Per past protocols regarding the return of monitoring well parameters to baseline monitoring, eight consecutive sample results below the GWCL have been acceptable to return the monitoring frequency. The EFR request includes a table summary which lists the applicable monitoring results for each well/parameter. The EFR request additionally includes analytical reports and field monitoring sheets for sample results which had not been provided to DRC at the time of the request. Per DRC cross check of the results it appears that eight or more consecutive results have been obtained for each of the wells/parameters. Therefore it is recommended that the wells/parameters be returned to baseline monitoring as summarized on the table below: EFR 2nd Quarter 2016 Groundwater Monitoring Report DWMRC Review Memo Page 13 Monitoring Well Parameter Baseline Monitoring Frequency MW-25 Chloride Quarterly MW-27 Sulfate Semi-Annually Gross Alpha Semi-Annually MW-3 5 Thallium Quarterly The return to baseline monitoring for these wells/parameters will be included in a transmittal letter for Director Review and approval. 14. Conclusions and Recommendations Based on DWMRC staff review of the above listed documents, it was noted that the requirements of the Permit appear to have been met by EFR and the data collected during the 2nd Quarter of 2016 appears to be reliable. It is recommended that a correspondence letter be sent to EFR with the following items: 1. Close-out regarding DWMRC review of the EFR August 18,2016, 2nd Quarter 2016 White Mesa Uranium Mill Groundwater Monitoring Report based on findings as summarized above. 2. Close-out regarding DWMRC review of the EFR May 2, 2016 Notice. 3. Removal of Parameters from accelerated monitoring status per the EFR August 19, 2016 request. 15. References 1 Energy Fuels Resources (USA) Inc., August 18, 2016, Td Quarter2016 Groundwater Monitoring Report, Groundwater Discharge Permit UGW370004, White Mesa Uranium Mill. 2 Energy Fuels Resources (USA) Inc., August 5, 2016, State of Utah Ground Water Discharge Permit No. UGW370004 White Mesa Uranium Mill - Notice Pursuant to Part I.G.l(a). 3 Energy Fuels Resources (USA) Inc., August 19,2016, State of Utah Ground Water Discharge Permit No. UGW370004 White Mesa Uranium Mill - Removal of Certain Groundwater Monitoring Parameters from Accelerated Monitoring Staus. 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. 7 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. EFR 2nd Quarter 2016 Groundwater Monitoring Report DWMRC Review Memo Page 14