- Dave Freudenthal, Governor John Corra, Director

August 27: 200s

.Mr. Arthur Howell. Director Division of Nuclear Materials Safety US. Nuclear Regulatory Comnission: Region IV 612 East Lamar Blvd, Suite 400 Arlington, TX 7601 1-4125

RE: ANC Gas Hills Reclamation Project Request to Modify Confirmatory Order? Docket No. 40-4492

Dear h4r. Howell,

In response to Mr. Wert’s lerter dated February 36, 2003, this is a request to niodiE, the above-referenced Coiifmatory Order. In y o ~ r review and evaluation of tlris request we would ask that you please keep in mind the following points:

WDEQ is not the licensee for tlris site. American Nuclear Corporation (ANC) is n o n ~ i a l l y the licensee and we understand that a third party recently had discussions with tv\C and NRC relative to acquiring tlie site and tlie h R C License. Vie would suggest that if a valid license exists. then the licensee should bear some responsibility for compliance with that license.

WDEQ’s sole interest is to insure that the site is reclaimed, since the licensee defaulted on that obligation. WDEQ entered into the Confiiinatory Order to be eligible to receive DOE Title X reimbursements to supplement the extremely liniited bond monies available for reclamation, Our experience with radiological issues is limited and so we must rely on NRC for advice and assistance 111 addressing those issues in an efficient and realistic maimer.

WBEQ has consisteatly taken a frugal, “bare-bones’’ approach to this project due to the limited budget. We have aclcnowledged that we have not complied with all of the specific requirements of the Order. We believe that tlie monitoring efforts specified 111 the Order are not warranted given the limited fluids available for reclamation of t h s site.

e JVDEQ has complexed niuch of the reclainatioii required at tlris site, including placement of tlie B ~ i l l i ~ s l i Heap Leach waste and interim cover on Tailings Pond No.1, partial cleanup of windblown tailings. final cover on Tailings Pond No. I! (123 acres) and the diversion of Campsite Draw. We have operated the groundwater pumnp-back system, installed 4 new wells and conducted a sampling progain on 17 wells and 2 springs.

WDEQ has yet to finalize a plan for reclamation of Tailings Pond No. 1. There are two outstanding issues on which we niust reach some agreement with NRC before that design work can proceed: 1, windblown tailings. and 2. groundwater contamination.

WDEQ and NRC should be worlcing cooperatively to bring rlGs project to a successful conclusion. We feel that we have shouldered the work for tlie past 12 years with little support from NRC. We would like to see NRC take a more active and constructive role in the hture.

Lander Field Office 9 510 Meadowview Drive 0 Lander, WY 82520 http://deq.state.Wy.us SOLID B HAZARDOUS WASTE WATER QUALITY

(307) 332-3047 (307) 332-6924 (307) 332-3144 C A V 221 771C C A Y 777-777G FAX 727-1181

ABANDONED MINES AIR QUALITY LAND QUALITY (307) 332-6755 r n v 9131 77?C

(307) 332-5085 r n v -00 -70,-

WDEQ proposes the following specific modifications to the Coufirniatoiy Order:

1. Part IV? section 3: Replace the fxst paragaph with tlie following:

Beginning in fall ZOOS, conduct an eiivironnieiital monitoring program to include monthly site inspections from ,4pril though October and an aixiual survey of tlie elevations of settlement iiioiitiments numbers 1 through 4 on Tailings Pile No. 1. ,411 other monitoring requirements (listed 111 items a. through g. below) are suspended until 3 months prior to tlie resumption of construction activities at tlie site.

Discussion:

See NRC letters dated 12/29/00 to ANC and 5/29/01 to WDEQ. The settlement monuments were last surveyed in 2005 and settlement was still occurring at that time. See attached graph. Due to the relatively slow consolidation of the tailings we believe that amiual surveying is sufficient to monitor the progress of the railings settlement. WDEQ will survey tlis fall.

-. 3 Part IV, section 10: Delete.

Discussion: The requirement for annual land use surveys is outside tlie scope of OUT reclamation project.

1 3 . Part Tv, section 1 1 :

Conduct groundwater monitoring and remediation as follows, beginning in fall 2008:

(a)

Replace with tlie following:

Sample 3Villow Spring, well R-4 and two other selected "h4W" wells semi-axiually (spring and fall) analyzing for chloride, nitrate. sulfate, pH, TDS, beryllium, cadmium: gross alpha, nickel, combined radium-226 and 228, seleniumt thoiiuni-230, vanadium and uranium. Sample VJillow Spring North when flows are observed in the spring.

(13) Measure water levels seiiiiaimually (spring and fall) in all 17 wells (MW-1 tlxouzli NIW- 7, MW-9 tlzrough MW-17 and R-4).

IC) Conduct a corrective action program consisting of puinping well R-4 from May 1 to October 3 1 of each year (weather peillljttjlig) wirh all waters dischai-ged to a non-ponding evaporative sprinlcler system located on the surface of Tailings Pile No. 1, recording tlie flows with a totalizing flow meter.

(d) Provide an annual report to 8 R C by &larch 1 of each year including all data and discussion of the results of tlie monitoring and remediation progain.

Discussion:

See WDEQ letter dated 1/23/01 and NRC letter dated 5/29/01 for bacltground information. Enclosed with tlGs letter are graphs for Willow Spring and wells R-4, NlW-lL?.A, MW-15. MW-16 and MW-17 showing levels of selected constituents over time. Well locations are shown on the attached site map. Wells 14A. 15, 16 and 17 were installed by MQEQ in 2003 to help defme backgroruid conditioiis and the extent of the contaminant plume.

Well R-4. the recovery well below Tailings Pond No. 1: has exlxbited consistent and substantial improvement in quality over its 20 year listoiy. Clearly tlie groundwater remediation program has been effective and should be continued.

Willow Spring is n natural spring located in Willow Springs Draw approxiniately one-half mile north of Taiiings Pond No.?. As evident on the graphs, the spring was impacted by seepage froin the tailings in the early 19SO's. The water quality has been improving over the last 8-10 years.

Page 2 of 3

None of tlie 4 new wells installed in 2002 eslibit significant trends at tlris point in time. Well 14A, located approximately midway between Pond N o 2 and Willow Spring, was installed on the east side of the IVillow Springs Draw (side gradient) with the thought that it zniglit represent “background”. It appears that tlris well does represent background 111 the shallow alluvial aquifer and it does not appear to be inipacted by seepage fiom the tailings (although an elevated Radium 326 level was recorded in 2007 that will bear watchuig). Well MW-17 also appears to represent background conditions at tlis point in tinie. Wells MW- 15 and MW- 16, located approximately 3/4 n i l e north of tailings pond no. 1, appear to be located w i t h the area hipacted by the tailings seepage plume.

Given the general consistency of the analytical data, we propose that Willow Spiing and the pumping well (R-4) be sampled semi-amually (spring and fall). The other (16) wells will be sampled on a rotation approxiniately eveiy 2-4 years in order to maintain coiitinuity in the record. Water levels will be measured in all wells semi-airnually, spring md fall.

WDEQ plans to prepare a suimnaqr analysis of all groundwater data over the coming months, with the goal of submitting a report to NRC in early 2009.

4. Part IV, section 16: Delete.

Discussion:

Ths requirement (payment of tlie Criterion lo? long term surveillance fee) is simply not possible given the extremely limited funds available for reclaniatioii of this site. This concern has been expressed by WDEQ since the inception of the project. There may be some Title X reimbursement funds available at the conclusion ofthe project but they will fall far short of the cui-ent Criterion 10 calculatioii that is now over 5500,000. We take the position that all available funds will be required for reclamation of the sire.

There may be other elements of the Confiimatory Order that warrant re-evaluation at tl<s time. Tlis might be an opportune time io look ai the relationshp between the license and the Confinmatory Order. W-e would solicit NRC’s input in tlis regard. We look fonvard to worlung with NRC to resolve these issues. Should you or your staff have any questions, please contact me.

Sincerely, ,

LQD District Supervisor

cc: Donald R. McKenzie - Administrator, WDEQ-LQD. Cheyenne Linda Gersey - US Nuclear Regulatory Coiimiission at above address Myron Fliegel - US Nuclear Regulatory Commission. Uranium Recovery Licensing Branch.

Division of Waste Management & Enviroimental Protection. Mail Stop TSFS, Wasliqton. DC 20555

Page 3 of 3

Wyoming

N I I I I I I I I I A 0 1,250 2,500 5,000 Feet Scale 1 :24,000

Legend Wells

Ta i I i n g s Po n d s

Drainages File Name: ANC-MAP-8-22-08

Roads

ANC Property Boundary

Map Created by: M. Bautz & M. Moxley (307-332-3047) Created on: August 22, 2008 Base Map: EDRG-24K, NAD 1927, Zone 13N Site Location: T.33N, R.90W, Fremont County, Wyoming

-

Monument Monument Number Number

(old) (new1 11/15/2000 4/3/2001 12/6/2001 7/30/2002 3/19/2003 5/19/2005 6441.08 1 16 6441.33 6441.31 6441.47 6441.37 6441.37

2 15 6440.53 6440.44 6440.55 6440.39 6440.30 6439.82 3 14 6441.44 6441.41 6441.64 6441.48 6441.57 6441.16

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