6)COTTER

April 5, 2005

Mr. Steve Tarlton

Radiation Management UnitHazardous Materials and Waste Management DivisionColorado Department of Public Health and Environment4300 Cherry Creek Drive SouthDenver, Colorado 80246-1530

Re: AMAX Research & Development Center (AMAX R&D)-Golden, ColoradoEast Parking Lot and Surrounding Area Soils

Dear Mr. Tarlton,

Cotter has received correspondence and soils characterization information from Mr. MoePasha of the group EMC relative to soils which will apparently be removed from theabove-captioned facility during the summer of 2005. Mr. Pasha represents the propertyowner and he has informed Cotter that he wishes to dispose of this material at our CanonCity Milling Facility (CCMF). His letter indicates that he has held discussions with theDepartment about this matter and on the basis of those discussions it was recommendedby CDPHE that he provide this information to Cotter in order that Cotter can make adetermination as to the materials acceptability for disposition at the CCMF. Toward thisend, Mr. Pasha has specifically requested that Cotter make a determination of the"Materials Acceptance" at the Canon City Milling Facility and issue a MaterialAcceptance Report (MAR) in that regard. As a follow-up to Mr. Pasha's request I havediscussed this matter with Mr. Egidi in light of the Departments denial of direct disposalfor the Maywood Soils within the License renewal context. Mr. Egidi opined that whileit is correct that Cotter was denied direct disposal of Maywood soil within thePreliminary License and Decision Analysis, Cotter can seek an amendment for directdisposal of other materials.

In accordance with the AMAX R&D request (and based upon the conversation with Mr.Egidi) Cotter has; 1) reviewed the data provided by Mr. Pasha, 2) found on the basis ofits review that the material is acceptable for receipt, and 3) has completed the attachedMaterials Acceptance Report signifying the materials acceptability and appending aWork Plan appropriate to the materials disposition at the CCMF. Please note that whilethis material was not specifically described by name in Cotter's revised License RenewalApplication, a Generic lle.(2)/non l1e.(2) material was assessed (i.e. DD-2) atsignificantly greater activity and an annual disposal volume more than twice that of theAMAX R&D soil. The assessment of the Generic material yielded dose estimates to thepublic which were well within the 25 rnrem requirement at 0.06 rnrem per year TEDE(with radon included). A radiological comparison of the previously assessed material tothe maximum activity indicated for the proposed material from the AMAX R&D Centeris provided in the table below:

Cotter Corporation7800 E. Dorado Place, Suite 210, Englewood, CO 80111

j 61, { GJIfu..l4iH - -hte.. tft ITelephone (720) 554-6200

Fax (720) 554-6201

By means of this correspondence Cotter is providing the "notice" required at 25-11-203(4)(a)(I) and requests that the Department initiate the actions specified at CRS 25-11-203(4)(b) relative to the materials receipt for disposal at the CCMF.

If you should have any questions regarding this matter, please contact me.

Sincerely,

~~~Manager, Environmental Affairs

'-

~ 6909 S. Holly Circle, Suite 202Centennial, CO 80112

(303) 384-0430Fax (303)384-0400

February 15,2005 1057-1

Mr. Richard D. ZieglerExecutive Vice PresidentCotter Corporation7800 E. Dorado Place, Suite 210Englewood, CO 80III

Transmittal

Characterization Report East Parking Lot and Surrounding AreasAmax Research & Development (R&D) Center - Golden, Colorado

Dear Mr. Ziegler:

In accordance with our numerous conversations during the past few months and asrecommended by the Colorado Department of Public Health and Environment (CDPHE)enclosed herewith is a copy of the report titled 'Characterization Report East Parking Lotand Surrounding Areas, Amax R&D Center', prepared by Savci EnvironmentalTechnologies, LLC (S.E.T.), dated July 7, 2003.

The purpose of the enclosed report is to assist Cotter Corporation (Cotter) in making adetermination of the 'Materials Acceptance' for the remaining radioactive-contaminatedsoils at the Amax R&D site. Specifically, can Cotter recei'le the approximately 8,000 tonsof remaining radioactive-contaminated soils for disposal at its licensed Canon City Millfacility? It is Amax R&D, Inc.'s (Amax) opinion that the remaining soils have beencharacterized as materials consistent with the approximately 30,000 tons of Kerr-McGeeuranium tailings that have been disposed at Cotter's Canon City Mill facility during the1999 through 2002 period.

As known to Cotter, Phelps Dodge Corporation, working through its subsidiary Amax,plans to remediate the remaining radioactive-contaminated soils starting in June 2005;therefore, timing is very critical. CDPHE has requested a 'Materials Acceptance' reportfrom a repository such as Cotter's Canon City Mill facility before the final sitedecommissioning activities may commence.

C:\DOCUMENTS AND SETTINGSIMOE PASHA \LOCAL SETTINGS\TEMPORAR Y INTERNET FlLES\OLKF\COTTER CR EPL LTR 021505.DOC

Mr. Richard D. Ziegler, Cotter CorporationAmax R&D, Characterization Report Correspondence

Page 2 of2February 15, 2005

Your prompt review and response is much appreciated in advance. Please call me at 303-384-0430 if you need additional information or further clarification.

Sincerely,EMC2

~~CtiP~Moe A. PashaProject Manager

Enclosures

ee: Steve Tarlton, CDPHE (w/o Ene!.)Phil Stoffey, CDPHE (w/o Ene!.)Phil Egidi, CDPHE (w/o Ene!.)Eddie Humphrey, Phelps Dodge Corporation (w/o Ene!.)Dan Kravets, Phelps Dodge Corporation (w/o Ene!.)Dan Dempsey, Phelps Dodge Corporation (w/o Ene!.)Jim Johnson, Phelps Dodge Corporation (w/o Ene!.)Gultekin Savei, S.E.T. (w/o Enc!.)Jim Hamula, Gallagher & Kennedy (w/o Enc!.)

~

'"~ ,

Canon City Mill-Material Acceptance Report

1. Material Name:

Amax R& D Center-East Parking Lot and Surrounding Areas Soils

2. Origin:

Amax R & D Center5950 McIntyre StreetGolden, Colorado

3. Present Storage Location(s):

Same as place of origin

4. Processing History (including extraction purpose):

The soils at the Amax R & D Center East Parking Lot (and Surrounding Areas) are impactedradiologically as a result of prior "pilot scale'; uranium extraction operations undertaken by theKerr-Mcgee Corporation in the late 1950's and early 1960's. As such, the tailings generated bythose uranium extraction activities were Byproduct Type II [i.e. II.e (2)] materials. Accordingto correspondence of February 15,2005 issued by the Projects Manager from the EMC2group (aconsulting firm representing the property owner) "it is Amax R & D, Inc.'s (Amax) opinion thatthe materials are consistent with the approximately 30,000 tons of Kerr-McGee uranium tailingsthat have been disposed at Cotter's Canon City Mill facility during the 1999 through 2002period." Based upon prior characterization and cleanup work conducted at the site by Cotter andits contractor, Cotter concurs with the Amax R & D, Inc (Amax) opinion in this regard. EMC2estimates that 8,000 tons of II.e(2) effected soils will be removed for disposal.

5. Previous Radiological Safety Concerns:

Previous material acceptance from this project has been accompanied by a Radiation WorkPermit (RWP) and Work Plan. Acceptance of this additional material will retain similaremployee exposure controls, consistent with the materials low-activity and the prior projectexperience (i.e. nuclides from the U-Nat and Th-Nat decay chains generally less than 100 pCi/g).

6. Current regulatory classification in state of origin:

Byproduct Type II [i.e. II.e (2)]

..7.,--_,!R,~dlological Composition:i 'r'~3,,'L:i\/t:L)

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.

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Results: Yes (X) or No ( ) (Attached)f ,acw"t!(JIl ~aie[y Uept. .

,. See Attached Report Entitled Draft Characterization Report-East Parking Lot and Surrounding;/-\R ::>AfetfsO31maxR & D Center-Golden, Colorado, July 7, 2003. Prior analytical work at the site

, . . '. supports the current characterization,affirmingthat the materialsare low in activity and areUfstnbutton ~onsistent with soils impacted by uranium mill tailings [Byproduct Type II, i.e. l1.e (2)].~ ~--------------. 1

Characterization efforts relative to these specific materials included two phases of work. Phaseone included excavation and sampling of several test pits to determine the aerial extent and depthof contaminants in the east parking lot and surrounding areas. Phase II efforts related tocharacterization of soils under the nearby buildings and, as such, sampling was implemented bymeans of soil borings beneath buildings 302, 304 and 309. Characterization sampling andanalyses were sufficient in number and indicated the maximum (pCilg) activities listed below forthe radionuclides of interest at this site:

U-23816.6

U-2356.1

U-23416.7

Th-23031.9

Ra-226120

Th-2325.7

Th-2287.8

8. Physical Composition (and products to be recovered when processed) :

The material is a solid soil matrix. Prior work at the site revealed a bank soil density of 1.6tons/cubic yard and loose soil density on the order of 1.3 tons/cubic yard.

Laboratory Test Results: Yes ( ) or No (X) (attach all)

9. Chemical Composition

The material is categorized as Byproduct Type II [i.e. 11.e (2)] due to its known generation fromuranium extraction processes. Because of this known processing and classification, chemicaldata (other than radiological content) are not required for acceptance.

Laboratory Test Results: Yes ( ) or No (X) (attach all)

10. MSDS Sheet: Yes ( ) or No (X) -The material is not a product.

11. Materials Receipt and Site Handling Plan:

Specify whether the material receipt and handling is contemplated by the SiteOperations Manual, the Site Liquid and Solid Materials Management Plan, or othersite materials management plan. If the material has not been contemplated by anyof the above means, append a material-specific receipt and handling plan to thisMaterial Acceptance Report.

The material will be received and disposed according to the attached Work Plan andRWP.

Regulatory Review

We have carefully reviewed the proposed project, which involves material that is not SpecialNuclear Material (SNM), and conclude that the Mill is authorized according to its license toreceive and process or dispose of the client's material as indicated below, and that the projectcould be conducted in compliance with applicable, relevant, and appropriate State and Federalrules, regulations, and guidance documents.

The type of material under consideration is proposed for: Processing (No) or Direct Disposal (Yes)

This Material is generated from uranium extraction processes, is classified as Byproduct Type II[i.e. 11.e (2)] and requires no further regulatory review prior to disposal in the Cotter 11.e (2)tailing impoundment.

DOE statement that receipt will not adversely affect eventual transfer of facility:

Note: The Department of Energy determined previously, in a letter dated December 31, 2003,that material from this project does not adversely affect eventual transfer of the facility to thegovernment. The material generated from this project has been classified as Byproduct Type II[i.e. 11.e (2)].

EPA approvals are not required.

The project is not a CERCLA-driven cleanup and, as such, the provisions of the EPA Off-SiteRule are not applicable to this materials disposition at the Canon City Milling Facility.

(X) This project will not be accepting classified material subject to Low-level RadioactiveWaste Act, Part 22, Article 60, Title 24, CRS.

Date .J -22'-0 j--

~ Date) /'2.. o/ljfMiJ1 Environmental CoordinatoriRadiation Safety Officer ~r

Health and Safety Review

We have carefully reviewed the proposed project and conclude that the project's activities can beconducted in a manner that is protective of workers, protective of the public, and protective ofthe environment. The project will require a Radiation Work Permit.

Date 3 -,?-1-0>

It ~ DateJj 2-'; ,i-Mi1'1Environmental CoordinatorlRadiation Safety Officer

.. ~

Mill Process Review

We have carefully reviewed the proposed project and have concluded that the Mill can performthe project.

1. Disposal of the material is compatible with Cotter's tailings impoundmentreclamationplan and compliant with Part 18 of the State of Colorado Rules and Regulationspertaining to Radiation Control.

2. Material can be handled in a manner consistent with Mill operating and other procedures.3. Modification to the mill facility will not be required:

JlU J(\;OVv~Mill M~aJlurgist or chemist

Date '3 - 1-4 -0("

Date 3..- ') 1- ()S

On behalf of Cotter Corporation, this Material Acceptance Report is submitted to the ColoradoDepartment of Public Health and Environment.

~"- .~G<nter£Hseuti .c Yiec President 0Date~ / a/00

Revision 1 March 28, 2005

low Specific Activity (LSA-1) Shipments - AMAXR & D Center Materials(Phelps Dodge)

This work plan describes the procedures to be followedfor receipt of LSA-l AMAX R &D Center (Phelps Dodge) materials. Allshipments willbe transported by truck to theCanon CityMillingFacility.

PPE1Occupationai Monitoring - Transport Drivers/Equipment OperatorsThe followingPPEwillbe used:1) Head and eye protection2) Coveralls (as requested)3) Rubber shoe covers (as requested)4) Gloves5) Respiratory protection based on air monitoring results.The followingoccupational monitoring willbe conducted:1) Breathingzone air monitoringat the start of the project, then based on monitoring

results or as specified by the RSO. Samples willbe collected on the following:a) Transport drivers during unloading activities.b) Equipment operator at the disposal area.

2) TLDjpocket dosimeters based on gamma levels3) Contamination surveys willbe performed at departure from the facility.

a) Transport driversb) Equipment operators

4) Gammaradiationsurveyswillbe performedat the unloading/disposalarea duringthe project.

5) Bioassay samples willbe collected as specified by the RSO.Radiological Training1) Site radiological briefing and work plan review for the transport drivers and

equipment operators is required.a) Ask the drivers if they have received site radiologicalbriefing for deliveryof

shipments to the millingfacility.If not notify the RSO.2) Training for personnel performing the radiologicalsurveys willbe provided and will.

indude:a) Instrument operation and calibration.b) Survey procedures, documentation and entry/i"elease limits.

Truck Receiving/Entry Procedures1) The transport trucks will enter the millingfacilitythrough the mainentry gate... .," Th rI..: ~~ ...:11 -.. ..\..- --,- __L- r~- --,-- .

Revision 1 March 28, 2005

b) Document if all the required Radioactive7 placards are in place. (both sides andrear of the traller and front of trailer or tractor)

c) Check for leakage from trailer.i) If leakage is suspected initiate the Suspected LeakageReport procedure

before proceeding.(1) Perform contamination survey at leakagearea and/or collect required

samples.d) Note condition of tarp and gasket seals.e) Note any other unusual conditions.

4) Perform entry Beta/Gamma radiological surveys and document readings.a) Beta/gamma surveys are performed before transport during the loading

operations. The entry surveys performed upon arrival at the milling facility will becompared to the transport index noted on the shipping papers.i) Entry Radiation Level Limits

(1) Truck cab(2) Vehicle at surface(3) Vehicle at 2 meters

5) Recordthe required documentation.a) If any of the entry levels are exceeded notify the Radiation Safety

Department before proceeding.Truck Unloading Procedures1) After the shipment has been cleared for entry the transport driver will proceed to

the truck sca!es for weighing.a) Recordthe required documentation.

2) The receiving personnel will then direct the transport driver to the designatedunloading area at the main impoundment.

3) Unloading of materials at the impoundment area will depend on road and weatherconditions.a) If the haulage road is too wet or slick for the trucks to proceed to the

impoundment area, the trailerswill be "droppedll at the ore storage pad areaeast of the milling facility area decontamination pad until it is possible to unloadat the impoundment area.

b) Material shipments will be unloaded at the main impoundment area. Some of thismaterial may be stockpiled for use in covering the tailing beacheswhen needed.

4) After unloading at the impoundment area the transport driver will proceed to thevehicle wash pad for decontamination.

5) The driver will then return to the truck scalesfor weighing before departure andthen proceed to the main gate area foj exit inspection and departure contaminationsurveys.

Truck Release Procedures1) Afterdecontaminationthe transport driver will remove their PPEand any monitoring

equipmentif issuedand signout beforeleavingthe millingfacility.

2 mR/hr200 mR/hr10 mR/hr

Revision 1 March 28, 2005

2) Radiologicalsurveys willbe conducted on the transport vehicle and driver beforerelease.a) ContaminationSurveys

i) The followingcontamination limitswillbe used for release of the transportvehicles, equipment and personnel. The release limitsto be used for Alphacontamination are:(1) Removable 200 dpmj100cm2(2) Total Average 1000 dpmjl00cm2(3) Maximum 3000 dpmj100cm2

ii) The release limits to be used for Beta contamination are:(1) Removable 1000 dpmjl00cm2(2) Total Average 5000 dpmj100cm2(3) Maximum 15000 dpmjl00cm2

Hi)When the truck is returning for an additional shipment, only the outersurfaces of the vehicle willrequire decontamination and survey forcontamination. The trailer inside surfaces willnot require contaminationsurveys as long as the tarp and gasket seals area in place, secure and thevehicle is marked per DOTrequirements.

iv) If the truck is being released for unrestricted use, then the inside surfacesand outer surfaces willrequire decontamination and contamination surveysbefore being released from the facility.

v) The transport vehicle and driver willbe decontaminated and resurveyed if therelease limitsare exceeded. This information willbe recorded for evaluation.

b) Beta/Gamma Dose Rate Surveyi) If the truck is being released for unrestricted use, dose rate surveys are not

conducted per procedure RH-070.(a) Anplacards should be removed or covered.

ii) If the truck is being released for restricted use and returning for an additionalshipment the followinglimitswillbe used:(1) At any surface 10 mR/hr or at 1 meter from surface 2 mR/hr(2) In truck cab 0.2 mR/hr

Hi)If the truck is returning for an additional shipment, the Radioactive 7 placardsare removed or covered and the vehicle marked with the words "ForRadioactive Materials Use Only"on both sides of the transport trailer.

iv) No return shipping papers are required.c) Before release from the facilitythe release personnel and/or transport driver will

verify that the truck tarps and gasket seals are in place and secure.General Precautions1) Dust Control

a) The haulage road and unloading area willbe sprayed with water at least onceper day or more often if dusting is noticed.

b) The vehicle speed limitis 20 mph around the millingfacilityarea.

3

Revision 1 March 28, 2005

c) Gravel will be reapplied to the haulage road to the disposalarea when needed tohelp minimize dusting.

d) Follow routine procedures for equipment usage.2) ExposureControl

a) Use respiratory protection if dusting is noticed during unloading.i) Respiratory protection will be required if breathing zone monitoring indicates

>25% DACusing the Modified DAC(lE-ll uCi/ml) based on gross alpha.ii) The breathing zone sampleswill also be evaluated for Thorium 230.

b) Use requested PPE