DRC-2023-000425 - 0901a0688115a7c6

DRC-2023-000425 195 North 1950 West • Salt Lake City, UT
Mailing Address: P.O. Box 144880 • Salt Lake City, UT 84114-4880
Telephone [phone] • Fax [phone] • T.D.D. [phone]
www.deq.utah.gov
Printed on 100% recycled paper
State of Utah

SPENCER J. COX
Governor

DEIDRE HENDERSON
Lieutenant Governor
Department of
Environmental Quality

Kimberly D. Shelley
Executive Director

DIVISION OF WASTE MANAGEMENT
AND RADIATION CONTROL

Douglas J. Hansen
Director

January 18, 2023

Kathy Weinel, Quality Assurance Manager
Energy Fuels Resources (USA) Inc.
225 Union Blvd., Suite 600
Lakewood, CO 80228

RE: Receipt and Processing Yellowcake from Sequoyah Fuels Corporation
Radioactive Material License Number UT 1900479

Dear Ms. Weinel:

In a letter dated October 13, 2022, Energy Fuels Resources (USA) Inc. (EFRI) requested to receive and
reprocess yellowcake material from the former Sequoyah Fuels Corporation (SFC) Gore, Oklahoma facility
through a license-to-license transfer. The 39 yellowcake drums and three UF4 drums that will be
reprocessed to concentrate and purify the material to make into a usable form. The White Mesa Uranium
Mill’s Radioactive Materials License UT1900479, license conditions 6, 7 and 8 allows the mill to have
natural uranium in any form with no limits on quantity. Both yellowcake and UF4 qualify as natural
uranium according to the NRC definition of uranium containing the relative concentrations of isotopes found
in nature.

EFRI proposed using a specific license to specific license transfer of licensed material under 10 CFR 40.51
to allow the transfer of the yellowcake material from SFC to EFRI which would not require an amendment to
EFRI’s Radioactive Material License (RML). Although the Division of Waste Management and Radiation
Control (Division) has not adopted the provisions of 10 CFR 40.51, the Utah Radiation Control Rules allow
for transfer of licensed materials between licensees as stated in R313-19-41(2)(d).

The Division has evaluated the information provided by EFRI regarding this request. Based on the
evaluation of information provided, and the Nuclear Regulatory Commission’s (NRC) conclusions that
milling processes may occur at locations other than a uranium mill and that milling processes are not
completed until the conversion process begins (SECY-02-0095), and Utah Radiation Control Rules, Division
agrees that the yellowcake material is still in the milling process and agrees that the yellowcake material
from SFC can be transferred to EFRI under the provisions in R313-19-41(2)(d).

(Over)

Therefore, no amendment is necessary to EFRI's license for the Honeywell yellowcake material. The
following provisions apply to the Division's concurrence for the transfer of this particular yellowcake
material from Honeywell, Inc. to EFRI:

• This concurrence for transfer of materials is exclusively for the SFC yellowcake material described
above and does not apply to other future projects;
• This concurrence is limited to the 41 drums of yellowcake and UF4 material identified in the
October 13, 2022, letter. Any additional drums will require Director approval; and
• The yellowcake produced from this project must be counted toward the yellowcake production limits
in EFRI RML License Condition 10.1.A.

The Division will inspect compliance aspects of this project during future inspections at the White Mesa
Mill.

If you have any questions, please contact Phil Goble or Ryan Johnson, at [phone].

Sincerely,

Phil Goble, Uranium Mills and Radioactive Materials Manager
Division of Waste Management and Radiation Control

DJH/RMJ/wa