ATTACHMENT 1

HOM ESTAKEMININGCOMPANYNEW MEXICOEPA ID# NMD007860935Site ID: 0600816

EPA REGION 6 .CONGRESSIONAL DISTRICT 02

Cibola County

Other Names:United Nuclear Homestake Partners

UNC/HomestakeUpdate November 2004

Site Description

Location: 0 5.5 miles north of Village of Milan in northwest New Mexico.

Population: * Approximately 200 people live within a mile of the tailings piles.

Setting: * Uranium mill* Two tailings piles: a large pile covering 200 acres and 100 feet in height and a smallimpoundment covering 40 acres and 25 feet in height.* Nearest residence is 3,000 feet away. I* Nearest drinking water well is 3,000 feet away.* Threatened population infouirsubdivisionslocated 1/2 to two miles from tailingspiles.

Hydrology: * Tailings located on alluvium, overlying Chinle and San Andreas aquifers.* Alluvium used as domestic water supply; deeper San Andreas is also an aquifer.* Extensive injection/withdrawal system has altered shallow ground water flows andflushed alluvial and upper Chinle contamination under the State of New Mexico'sGround Water Discharge Plan (DP-200).

Present Status and IssuesHomestake continues to operate the ground water extractionlinjection system at the former mill site todewater the large tailings impoundment and clean up ground water contaminated by tailings seepage.Collected ground water is piped either to the Reverse Osmosis (RO) plant for treatment and re-injectioninto the aquifers or two lined evaporation ponds for disposal. Homestake is also operating a secondaryground water extraction and irrigation system to remediate the down-gradient portion of the contaminantplume. The ground water restoration work is anticipated to continue beyond 2010.

Although levels of contaminants in ground water have decreased over time in portions of the aquifers,Homestake believes that background concentrations exceed established cleanup standards established bythe U.S. Nuclear Regulatory Commission (NRC) and/or the New Mexico Environment Department(NMED). Homestake has submitted a proposal for alternate background levels at the Site, along with astatistical evaluation of ground water quality upgradient of the site to support the proposal. TheEnvironmental Protection Agency (EPA) and NMED are currently reviewing those documents.

1 November 2, 2004

The large tailings impoundment is currently capped by a radon barrier and erosion-protection cover onits sides and an interim soil covers on its top. A final radon barrier will be constructed after the tailingsare dewatered. It is estimated that dewatering of the large tailings impoundment will be completed in2007. The small tailings impoundment is also capped by an interim soil cover. A final radon barrierwill be constructed atop the small impoundment once the ground water restoration is complete and theremaining facilities are dismantled and disposed therein. This work is scheduled for completion in2013.

Wa-stes-arnd-Volumes* Principal Pollutants:

- Alkaline mill tailings- Radium-226; 60-100 picocuries/l iter in tailings (soil)- Selenium: 1,200 parts per billion (ppb) (water)- Uranium: 720 ppb (water)- Radon: 0.03 Working Level (WL) (air)

* Volume:- Tailings piles - 22,225 million tons (large pile - 21 million tons, small pile - 1.225 million tons)

Site Assessment and Ranking

PNP.ULISTl G H ISTOURYabbi

Site Map and Diagram

EPA Publication Date: November 2, 2004 2 HOMESTAKE MINING COMPANYEPA Publication Date: November 2, 2004 2 HOMESTAKE MINING COMPANY

Site History

* Mill opened in 1958.

* Ground water contamination observed as early as 1961.

* NMED approved Homestake's Ground Water Discharge Plan (DP-200) in 1981 covering shallowaquifer restoration activities at the site.

* Homestake and EPA signed a consent decree for an alternate water supply in November 1983.Homestake was required to provide alternate permanent water supply to nearby residences and to payfor water usage for ten years.

* New Mexico radon study released for homes near mill in August 1983.

* Alternate water supply hookups to residences were completed in April 1985 and the water usage waspaid for by Homestake until 1995. The EPA has since released Homestake from its obligations underthe consent decree.

* Homestake signed an Administrative Order on Consent in June 1987 despite its position that anyemissions of radon from Homestake's facility are "federally permitted releases" and that the companyshould not be liable for any study or response costs in connection with the Radon remedialinvestigation.

* EPA signed a Record of Decision (ROD) for the Radon Operable Unit on September 1989. TheROD called for No Action.

* The mill closed in 1990.

* EPA and the NRC signed Memorandum of Understanding (MOU) in 1993 designating NRC as thelead federal agency for remedial and reclamation activities. The EPA maintains an oversight role as setforth in the MOU.

* The mill was decommissioned and demolished and surface reclamation activities were conductedbetween 1993 and 1995 under the direction and oversight of the NRC, pursuant to Source MaterialsLicense No. SUA-1471. Surface reclamation activities included the excavation and on-site disposal ofsoils contaminated with windblown tailings and the construction of radon barrier (soil) covers anderosion protection covers (rock layers) on the perimeters of the tailings piles. A 1-foot thick interimsoil cover has been placed atop the tailings piles to protect against erosion while the tailings aredewatered.

* EPA completed the first Five-Year Review in September 2001. Based on that review, EPA considersthe ongoing remedy to be protective of human health and the environment in the short-term, andexpects it to be protective in the long-term as remedial efforts continue.

HOMESTAKE MINING COMPANY 3 EPA Publication Date: November 2, 2004HOMESTAKE MINING COMPANY 3 EPA Publication Date: November 2, 2004

HUMAN HEALTH AND ECOLOGICAL RISK ASSESSMENT

* Several hundred people depended upon the shallow aquifer as a water supply; an alternate watersupply was provided to nearby residences in 1985 by Homestake under a Consent Decree with EPA.

* Seepage from the two tailings piles has contaminated the shallow aquifer and portions of the UpperChinle aquifers. Possible emissions of radon from the tailings piles on Homestake's property may haveincreased the concentration levels of radon in adjacent subdivisions.

Record of Decision

o;bSge- Co'nsent A}reemen' t'_IhnNdovembeer- 19 83 "-(Gro&Un -Watr)>^s,I < , r-Jo Actioh ROD Sjeptember 27;11 8 a

* Ground water remedy: There is no EPA decision document for ground water remedy at this site.NRC, EPA and NMED are currently working together to establish revised cleanup levels for groundwater restoration as some of the originally proposed standards have changed or not appropriateanymore. The residents of the surrounding communities have been provided with an alternate watersupply to ensure the health of the residents are protected. Homestake provided for the extension of theVillage of Milan municipal water system to those homes and payed for the residents' use of that watersupply for 10 years under a consent decree (Agreement and Stipulation) signed with EPA in 1983.

* No action was necessary to address radon, therefore, a No-Action ROD was issued by EPA.

Community Involvement* Community Involvement Plan: Developed 09/87.* Open houses and workshops: 10/86, 10/87. Next Planned: 12/04* Original Proposed Plan Fact Sheet and Public Meeting: 07/89.* Original ROD Fact Sheet: 10/89.* Milestone Fact Sheets: No Further Action.* Citizens on site mailing list: 109* Site Repository: New Mexico State University, Grants Library, 1500 Third Street, Grants, NM 87020

Technical Assistance Grant

*Availability Notice: 01/89* Letters of Intent Received: None* Grant Award: N/A

Contacts

* Remedial Project Manager (EPA): Sai Appaji, 214.665.3126 (6SF-LP)* State Contact: Kevin Myers 505.827.2906* Nuclear Regulatory Commission Contact: Bill Von Till, 301.415.6251* Community Involvement (EPA): Robert Johnson, 214.665.6676 (6SF-PO)* Attorney (EPA): Pamela Travis, 214.665.8056* EPA Ombudsman: Arnold Ondarza, 800.533.3508* State Coordinator (EPA): Kathy Gibson 214.665.7196* Prime Contractor: None

EPA Publication Date: November 2, 2004 -4 HOMESTAKE MINING COMPANY

Benefits

* The initial action to connect the nearby residences to the municipal water supply provided a safedrinking water supply. Also, the study on indoor radon levels showed that site contamination was notcontributing to elevated indoor radon levels found in some area homes.

* The contaminant plume has been driven back almost 3/4 mile into the site boundaries of HMC byinjecting fresh water down-gradient of the site. Nearly 4.5 billion gallons of contaminated water havebeen removed and 540 million gallons of treated water has been reinjected into the aquifer. The NRCis requiring that the Corrective Action Plan include clean-up of off-site contamination and require thatthe licence be amended accordingly as well.

* Reverse gradient injection has assured that contaminants in the ground water would not expand intothe shallow aquifer, thus making the shallow water potentially usable in the down gradient areas. Oncethe tailings piles have been closed, the site will be transferred to DOE under general license.

HOMESTAKE MINING COMPANY 5 EPA Publication Date: November 2, 2004HOMESTAKE MINING COMvPANY 5 EPA Publication Date: November 2, 2004

ATTACHMENT 2

Grants Reclamation ProjectCibola County, NM

Project Status and Update

Ongoing Aquifer Remediationand Site Closure

II (NII��TA16E

I-.

12/11/95

IHMC Grants Millsite Operational HistoryI

1956-57 Two uranium processing mills wereconstructed to supply uranium to the AtomicEnergy Commission (AEC) (Homestake-NewMexico Partners and Homestake-SapinPartners)

1958 Mining commences from 5 U/G mines held byHMC in the Ambrosia Lake Mining District

Operational History (Cont'd.)

.7

1968 Organizational change in operating unitresulting in new company - United Nuclear-Homestake Partners

1981 HMC of California becomes sole owner ofmilling complex

-t

1990 Uranium production ceases at HMC millsiteApprox. 22 million tons of ore processedwith total production yield of 82.5 millionpounds of U308 (yellowcake)

Project Reclamation & Closure History

1977 Initiated restoration of identifiedgroundwater contamination

1993 Completed reclamation of U/G mines inAmbrosia Lake

1994-95 Completed Demolition of the milling complexand cleanup of windblown tailings

1995 Placed interim radon barrier cover on theLarge and Small Tailings Piles (LTP & STP) &placed rock armor / erosion protection onoutslopes of the LTP

III~ li

Current / Ongoing Site Activities

1996 toPresent

++Fresh water collection and re- injection intoalluvial aquifer++RO treatment of contaminated water fromvicinity of LTP and within LTP++RO product water injection into alluvial aquifer++Evaporative management of RO brine waste andwater not suitable for treatment++Crop irrigation program to assist in final aquifercleanup and "polishing"++LTP injection/collection/flushing program

. .

General Reclamation Program Objectives

c Restoration of alluvial and Chinle aquiferse Final physical reclamation of 2 tailings piles* Removal / reclamation of evaporation ponds* Removal of RO plant and all surface support

facilities* Transfer of site to DOE for long term care,

maintenance and site surveillance

Regulatory Agency / Permit Setting

* Major regulatoryagencies involved atGrants site:

* Major permits /frameworks regulatingactivites at Grants Site:

- NRC- EPA- NMED

- 2 State Discharge (DP)Permits

- NRC Radioactive Mat'Is.License

- State Water AppropriationPermits

- CERCLA SuperfundOversight

Aquifer Remediation I Restoration

Review of Program activities- Aquifer restoration / cleanup

* Alluvial aquifer* Upper, Middle, & Lower Chinle aquifers

- Specific water management activities* Injection / collection systems* Tailings pile flushing* Crop Irrigation program

- Project timing and Projected Completion Schedule

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--LEGEND--

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Aquifer Remediation/Cleanup / Restoration

Water Treatment - RO plant operation

Contaminated water evaporation management

Tailings pile water management

- Fresh water flushing (injection / collection) LTP

- Draindown (collection) LTP

Physical Reclamation / Closure

- Large Tailings Pile

* radon barrier & rock cover placement

- Small Tailings Pile

* Evaporation pond decommissioning

* Radon banier & rock cover placement

- RO Plant, buildings, facilities decommissioning

Site Transfer to DOE for long term management

Thru 2012

Thru 2012

Thru 2012

Thru mid-2006

Thru 2007

2008

2013

2013

2013

2013-14

is!