ML20014E727

Cimarron Groundwater Meeting Agenda

ML20014E727
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Site:	07000925
Issue date:	02/16/2012
From:	- No Known Affiliation
To:	Document Control Desk, Office of Nuclear Material Safety and Safeguards
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Download: ML20014E727 (29)

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Cimarron Groundwater Meeting Agenda February 16, 2012 (Action Items in Red Font)

Administrative / Financial Issues 12/28/2011 Proposed Budget The primary issues of concern are the cost of groundwater modeling and the cost of the water treatment study. Lifeng Guo and Pat Higgins (BMcD) have been discussing the scope and level of effort, and BMcD is providing a revised cost estimate for groundwater modeling. EPM has sent an RFP to Layne Christensen to perform a treatability study and design a water treatment plant.

Other aspects of the budget will be revised to reflect updated information. An RFP for the drilling, well installation, and aquifer testing activities that will be performed by a licensed driller has been sent to Layne Christensen. Layne Christensen is the only drilling company located within 200 miles of Oklahoma City that has the equipment and experience needed to run packer tests. The budget will be revised (either up or down) based on their bid.

Finally, the cost to design the groundwater remediation plan may be revised based on decisions made regarding the treatment process. EPM will revise the proposed 2012 budget to reflect these changes, and will submit it to the beneficiaries after obtaining the information identified in the Groundwater Remediation section below.

Q1 Budget EPM submitted a partial budget in an attempt to obtain expedited approval to perform work on the license amendment in satisfaction of Trust Agreement provisions. Section 3.2.3 of the Trust Agreement states, No expenses may be incurred or paid by the Cimarron Trustee that are inconsistent with an approved budget unless the Lead Agency after consultation with the other governmental agency approves an emergency response action or a revised budget. There currently is no approved budget for the development of a groundwater remediation plan. To address this, EPM submitted a proposed first quarter budget to obtain expedited approval to work on the license amendment.

To avoid the unnecessary time and expense to prepare a detailed budget based on a first-quarter schedule, EPM submitted a partial budget by extracting the cost of portions of the 2012 budget, although some of those activities will carry over into the second quarter. DEQ recommends referring to this as a preliminary budget rather than tying it to a calendar quarter.

Alternatively, NRC and DEQ could agree to proceed with the development of a groundwater remediation plan as an emergency response action until the 2012 budget is approved. EPM will re-submit the previously submitted partial budget for preliminary partial budget approval.

Financial Reports EPM submitted the financial reports for 2011 on January 31, and sent copies via e-mail to NRC and DEQ, with additional breakdown of costs by budget category, on February 16th. EPM was significantly under budget in the Administrative and Federal Accounts, and nearly exactly on budget in the State Account (after accounting for reduced fees by NRC and DEQ relative to budgeted amounts).

DEO Fees DEQ has not submitted an invoice for DEQ fees for 2011. DEQ needs to advise EPM regarding the adequacy of the $25,000 which was submitted in the proposed 2012 budget. Will this be sufficient to cover all DEQ fees to be billed during 2012?

NRC Fees NRC sent an invoice to Tronox for all fees from the 4th quarter 2010 through 3rd quarter 2011.

NRC, EPM, and Tronox have agreed on the exact amount of fees for which Tronox and EPM are liable, but no invoice has yet been sent. NRC will check on the status of the revised billing and make sure the invoices are sent. The Trust booked the 2011 fees agreed to in 2011. The 4th quarter financial report shows those fees as paid in 2011.

Groundwater Remediation Issues October 21, 2011 Flowchart This flowchart was developed to illustrate the modified groundwater remediation process as was understood from the September 27, 2011 meeting at the Cimarron site. Feedback is needed from NRC and DEQ, particularly regarding several key elements:

Should it be simplified for public presentation by eliminating the financial decision points?

The flowchart indicates that we will quit treating produced groundwater for uranium once the combined influent to the water treatment plant is less than the release criteria for uranium. The rationale for this was that if the water coming to the water treatment plant meets site-specific criteria based on a drinking water scenario, we should not spend significant money removing the uranium from it, and can make more progress (with existing funding) toward remediation by discharging it. It exceeds MCLs, but not site-specific drinking-water based criteria, and should be well below expected discharge permit limits. A decision is needed from NRC and DEQ regarding whether treatment is required until all wells are below the release criteria for uranium instead of when influent to the plant is below the release criterion. There is a significant cost difference here.

The flowchart indicates that we will treat all the groundwater we produce during Phase I, but if we treat only the groundwater coming from BA#1, the discharge will likely contain less than 150 ppb (225 pCi/1) uranium and less than 50 ppm nitrate, which it is anticipated would be less than the OPDES permit limit. Additional alternative scenarios will be presented to DEQ Water Quality Division, and they will run their model to determine the likely permit limits for uranium and nitrate. Whatever water quality data is available for upstream and downstream Cimarron River locations will be provided to DEQ. A decision is needed from NRC and DEQ related to whether all groundwater should be treated or only that groundwater coming from BA#1. There is a significant cost difference.

The flowchart indicates that after the water treatment plant is shut down, Phase II remediation will consist of pumping groundwater from areas where nitrate exceeds release criteria and treating it by irrigation. Because the water will contain low concentrations of uranium, which could concentrate in surficial soils due to the repeated application of water, a final status survey would be needed for this 150-acre area. An order-of-magnitude cost estimate for the final status survey of this area alone could exceed $1,000,000. In lieu of

land application this water could be discharged in accordance with the OPDES permit. A decision is needed from NRC and DEQ regarding whether irrigation is needed during Phase II.

Groundwater Extraction Wells North of U-Pond #2 The remedial evaluation called for the installation of two wells north of U-Pond #2, which together would extract the same quantity of water that is being injected into the U-Pond #2 area.

The purpose for this extraction would be to prevent the injection of treated water into the U-Pond

1. 2 area from creating a higher hydraulic gradient between the bluff and the Cimarron River, driving the nitrate-laden groundwater east of the uranium plume toward the river. Not installing those wells would reduce the quantity of groundwater that would be treated (if all water is treated, rather than only the water coming from the BA#1 area). A decision is needed from NRC and DEQ regarding whether groundwater should be extracted from this area.

Water Treatment A proposal was obtained from Energy Solutions to conduct a treatability study and design a water treatment plant to treat recovered groundwater for uranium via ion exchange. Another vendor, Layne Christensen, who maintains qualifications to provide water treatment services has been sent an REP requesting a treatability study proposal. EPM anticipates receiving their bid before the end of February. If this bid is lower than Energy Solutions bid, EPM will revise the proposed 2012 budget accordingly and submit the Layne Christensen bid for agency review.

Degree of Detail in Groundwater Remediation Plan EPM asked whether a 30%, 60%, or 90% design would be required to obtain approval of a groundwater remediation plan. After discussion, EPM agreed to submit a groundwater remediation plan which includes a fully detailed design of:

The water treatment plant The impoundment The discharge structure and line The design of individual groundwater extraction and injection wells Aspects of the design which will need flexibility will be:

Location and number of groundwater extraction and injection wells. Approximate locations and number of wells will be submitted, but the design will retain sufficient flexibility that wells can be moved based upon accessibility or surface features, and well depth can be determined in the field to ensure that the entire saturated interval is appropriately screened.

Location and size of utility trenches and lines. Approximate locations will be submitted in the plan, but actual locations will be dependent on field conditions, particularly when trenching along the bluff, where shallow subsurface bedrock may dictate moving the trench slightly. The same applies to water transfer lines.

Flow rates will be estimated, but actual flow rates per well will be determined during the initial stages of operation. Anticipated flows will be submitted in the plan based on groundwater models, but adjustment to actual field conditions will be made within the first several months of startup.

Well controls will be generically described and anticipated intervals of pumping and recovery will be submitted, but adjustments to the timing of groundwater extraction will be modified based on field conditions.

© Provisions for adding groundwater extraction or injection wells will be included in the design, along with those factors that may influence the decision to add or remove wells.

It was agreed that operating procedures will be developed after NRC and DEQ approval of the groundwater remediation plan. Rather than obtaining agency approval of operating procedures, these will be available for review during inspections.

Pilot Tests Two pilots tests will be performed prior to the preparation of a groundwater remediation plan: a hydrogeologic pilot test and a water treatment pilot test (treatability study). NRC and DEQ have already seen the RFP for a water treatment study. A January 25 e-mail sent to DEQ included activity planning forms and procedures for the hydrogeologic pilot test, (note: NRC had not been sent this e-mail: a copy of this e-mail was forwarded to NRC on February 17th.) EPM requests feedback from NRC and DEQ regarding the scope of work outlined in each of the two APFs: hydrogeologic pilot testing, and groundwater sampling.

If either agency desires additional groundwater sampling and analysis during the pilot tests, this will be included in the revised proposed 2012 budget; the budget that was submitted did not include additional sampling and analysis beyond what is included in the APF.

Groundwater Modeling NRC and BMcD have been discussing the scope of groundwater modeling, and have agreed on the level of effort for various aspects of the modeling work. The next revision to the proposed 2012 budget will reflect this. The cost of incorporating data from the remediation system into the model will not be included in the 2012 budget, because this cannot be performed until 2013.

That cost will be included in the cost estimate for implementing the groundwater remediation plan.

Sampling and Analysis Plan and Procedures Two new procedures have been generated for the pilot test: packer testing and aquifer pump testing. DEQ last reviewed the SAP and existing procedures prior to the transfer of the Cimarron site to the Trust. The SAP was revised primarily to reflect the transfer of the site to the Trust, but also added analysis of water by ICP/MS. EPM requests that DEQ notify EPM whether they will review the entire SAP and all procedures, or only the two new procedures, prior to implementation during the pilot tests.

Property Disposition Photographs of the coal liquefaction equipment in the TiCte building were sent to Syntroleum after discussing the possibility of transfer of equipment to Syntroleum. Waiting on response from Syntroleum, but based on initial comments there is little potential for them to take some or all of the equipment.

A letter proposing the sale of three portions of the Site was sent to NRC and DEQ on January 30, 2012. The letter contained an attachment which provided a description of three portions of the Site, the appraised value of each portion, and identifying a party who has expressed interest in the purchase of that portion of the property. The three parcels considered for sale are:

The property west of Hwy 74.

o The southwest 1/4 of Section 12 (less a rectangle occupying approximately 6 acres)

© A 26-acre property containing the remaining buildings The paper attached to the letter also addressed three potential methods to sell the property. The beneficiaries agreed conceptually to the sale of these three properties, pending the following:

Consideration of a notice in the deed regarding the former status of the property

© Consideration of public comment regarding the divestiture of portions of the site

© Potential identification of other interested parties resulting from the announcement of the Trustees intent to sell portions of the site during the public meeting Public Meeting A public meeting will be scheduled after decisions regarding the groundwater remediation process have been finalized. The purpose of the meeting will be to:

Explain the bankruptcy, creation and funding of the Trust, Describe the roles of the Beneficiaries and the Trustee Describe the environmental status of the Cimarron site Describe plans to remediate groundwater at the site Describe the three parcels of property that are proposed to sell Solicit input from the public regarding groundwater remediation plans and divestiture of the property EPM identified one venue that could accommodate greater than 40 people - the Holiday Inn Express in Guthrie, near Interstate 35. DEQ suggested checking out the public schools in the Crescent and Guthrie area to try to find a venue closer to the site.

Vehicles for public notification were discussed. EPM suggests publication of the meeting in the Guthrie and Crescent newspapers. DEQ will consider whether Oklahoma City or area-specific editions of Oklahoma City papers would be appropriate. EPM will request assistance from DEQ regarding how to issue notice of the meeting, selecting the venue, and conducting the public meeting.

Potential Public Meeting Agenda -

Introductions - EPM Describe bankruptcy process and creation of Trust - EPM Explain agency role and responsibility as beneficiary and as regulator - NRC and DEQ Describe environmental status of site - EPM Describe proposed remediation process - EPM Describe proposed divestiture of portions of the Site - EPM Solicit feedback from public in breakout format - NRC or DEQ Breakout so attendees can individually address NRC, DEQ, or EPM End of Meeting

NRC - DEQ - EPM Telecon Action Items From May 8, 2012 Telecom Public Meeting - June 4th Monte Elder will assist Jeff Lux in arranging meeting venue Public notice - Jeff Lux will review 10 CFR 20.1405 and NRC Best Practices document Presentation - Jeff Lux will send Powerpoint file to NRC and DEQ by COB May 11 for review and comment Breakout session for public feedback - Jeff Lux will develop contact cards for DEQ, NRC, and EPM to hand out at public meeting By May 11, Jeff Lux will set up telecom to discuss public meeting Administrative Issues 2012 budget approval - David Cates will follow up on DEQ budget approval Q1 financial statement - Bill Halliburton will forward Q1 financial statement, which has already been sent to Trust parties. Jeff Lux will forward to Ken Kalman and David Cates.

DEQ reimbursement fund agreement - Bill Halliburton will locate reimbursement agreement with EPM comments and forward to Pam Dizikes and David Cates.

License Issues Response to letter on Tc-99, rubble, subarea F soil - Ken Kalman and staff will review November 2007 soil data report - Jeff Lux will send Tc-99 data to NRC - Ken Kalman will respond in writing Confirmatory survey of rubble during 2012 NRC inspection - Ken Kalman will arrange for review of Subarea F FSSR and confirmatory survey of slabs during 2012 NRC inspection Annual environmental sampling - Jeff Lux will send spreadsheet listing sample locations and analytical parameters to NRC and DEQ by COB May 11 1,200 gram or 6,000 gram limit on U-235 - Jeff Lux will e-mail Enercon review on criticality, safety & safeguards, and DOT issues Advance review - re-definition of licensed areas - Jeff Lux will e-mail draft map showing proposed licensed area by COB May 18 for preliminary review and comment Advance review - amendment request for license conditions - Jeff Lux will e-mail draft proposed changes to license conditions by COB May 25 for preliminary review and comment Groundwater Design Issues Decommissioning plan outline - Ken Kalman will notify EPM in writing regarding which portions of the outline must be incorporated into the 2012 LAR OPDES permit application - EPM will pay permit application fee when 2012 budget is approved.

Hydrogeologic pilot test - Jeff Lux will schedule field work after 2012 budget is approved

Pilot test and assessment sampling - Jeff Lux will notify NRC and DEQ when sampling will be conducted after 2012 budget is approved and drilling contractor notifies EPM when he can mobilize for field work.

Water treatability study proposals - Jeff Lux will e-mail proposals from Layne Christensen, Clean Harbors, and EnergySolutions, with summary of EPM evaluation, by COB May 11. Vendor will not be selected until NRC and DEQ provide their recommendation.

Design development document - Jeff Lux will e-mail proposal for what degree of design is required for various components of the groundwater remediation plan after water treatment vendor is selected.

Irrigation areas - Jeff Lux will send description of in-process evaluation of soil to replace final status survey by COB May 25 for NRC review and comment.

Advance review - conceptual design in Powerpoint presentation file - Jeff Lux will send Powerpoint file and conceptual plan flowcharts to NRC and DEQ by COB May 11. NRC and DEQ will review to determine if these coincide with their concept of Phased groundwater remediation.

NRC - DEQ - EPM Teleconference Notes July 10,2012 (Action Items are in Red)

On the call:

NRC Rockville-NRC Region IV-DEQ-EPM-Ken Kalman Robert Evans David Cates Kelly Pham Bill Halliburton Lifeng Guo Gerald Schlapper Mike Broderick Kate Deaton Jeff Lux Varughese Kurian Pam Dizikes Jennifer McAllister Mike Logan Administrative Issues

1. EPM has signed and submitted the DEQ reimbursement fund agreement and has sent a check for over $4,000 as per the invoice for the first quarter of 2012. DEQ may not have received either, and will check into this. DEQ will also send a statement that reflects the deduction of 2011 DEQ fees from the reimbursement fund.

2. After the 2012 budget was prepared and submitted, several decisions were made that change the scope of work for the hydrogeological pilot test. The two most significant changes relate to the need to contain purge water, well development water, and the water generated during pump tests, and the addition of confirmatory sampling borings in Subarea F. EPM will generate cost estimates for each scope of work and will send an e-mail with a cost estimate. The intent will be to fund this additional work from Task 6 -

Unanticipated Work.

License Issues

1. EPM requested that either the Trust purchase one set of the radiological instruments that will be used most frequently. Instruments, sources, and the most frequently replaced parts (batteries, cables, mylar windows) for four instrument combinations will cost approximately $10,000. The Trust will save significant money if they purchase instruments rather than rent them, and the instruments will be disposed of as assets just like the groundwater pumps, ladders, drum dollies, etc. that the Trust owns at the site. As an alternative, EPM can purchase the instruments and rent them to the Trust when they are used on site. The benefits of ownership include having the instruments there when needed, not paying for shipping instruments for each use, and reduced time and paperwork associated with renting different instruments each time work is performed. It was agreed that either the Trust or EPM should purchase the instruments, sources, and spare parts. EPM will provide the rates they have been charged for the instruments which were rented from Enercon for 2011 and 2012 site work. NRC and DEQ will notify EPM whether they desire the Trust or EPM to purchase the instruments.

2. NRC stated that they need the recent Tc-99 data to complete their review. The Tc-99 data was provided on May 9 and July 10. NRC will review the data and formally document that groundwater assessment, remediation, and monitoring for Tc-99 is complete.

3. NRC performed a confirmatory survey for the rubble in Subarea F and noted that the observed measurements were similar to those recorded for rubble in Subarea G. Pending review of the confirmatory survey report that will be prepared by NRC Region IV, NRC will likely release the rubble in Subarea F for unrestricted use.

4. EPM uploaded the 2005 Subarea F Final Status Survey Report and the 2007 Burial Area

1. 1 Subsurface Soil Assessment to the Cimarron EPM Sharepoint site on July 11. NRC will review these reports. EPM sent an Excel file to NRC and DEQ which shows that, if soils in Subarea F comply with decommissioning criteria, groundwater contamination will not cause soil to exceed decommissioning criteria. If review of the data provided in these two reports supports EPMs contention that subsurface soil complies with decommissioning criteria, NRC will conduct a confirmatory that should enable them to document that soils in Subarea F are releasable for unrestricted use.

5. Annual environmental sampling will be conducted beginning July 31. EPM sent a spreadsheet listing sample locations and analytes to NRC and DEQ on July 11. NRC and DEQ will identify any locations they would like added to the list, will highlight locations from which they would like to obtain split samples, and will inform EPM of other analyses they would like to have run on surface water samples in support of OPDES permit development. EPM requested this feedback from both agencies by close of business (COB) July 12.

6. Enercon is preparing a paper regarding the impact of a 1,200 gram or 6,000 gram limit on U-235 on criticality, safety & safeguards, and transportation of loaded resin. The paper should be distributed to NRC and DEQ by the end of August.

7. Re-defining the licensed site was discussed, and the decision was made that this will be addressed in the same license amendment request that will contain the groundwater remediation plan. During the July 31 - August 1 meeting at the Site, NRC will provide feedback on:

a. Non-contiguous areas under license

b. Need to license all areas including pipelines, and irregularly shaped areas

8. Requesting amendments to specific license conditions was discussed, and the decision was made that this will be addressed in the same license amendment request that will contain the groundwater remediation plan. During the July 31 - August 1 meeting at the Site, EPM will provide an overview of the license condition amendments that will be requested in the License Amendment Request to solicit NRC feedback on their acceptability.

9. NRC Region IV will conduct an inspection on site during the NRC and DEQ visit on July 31 and August 1. On July 11, Mr. Schlapper notified EPM that he will arrive on July 30 to conduct an inspection and will observe groundwater sampling on July 31.

Groundwater Design Issues

1. DEQ has received the check from EPM for the OPDES permit application fee. DEQ will begin review of the application.

2. Because potable water will be used for the packer test and injection test that will be conducted during the hydrogeologic pilot test, the boring/well is considered a shallow non-hazardous waste injection wells. Consequently injection into the boring (for the packer test) and the injection well (for the injection test) will not require an Underground Injection Control (UIC) permit, because shallow non-hazardous injection wells are considered Class 5 injection wells as per 40 CFR 144. However, the regulations do specify notification requirements which must be provided to DEQ prior to injection.

EPM will provide the information needed by UIC Program personnel by the end of August.

3. The activity planning form (APF) for the hydrogeologic pilot test needs to be modified to provide for containment of all produced water and for confirmatory survey sampling in Subarea F. EPM will revise the APF and submit it with needed attachments to NRC and DEQ to ensure that the work described in the APF will satisfy agency needs.

4. EPM explained that the selection of a water treatment vendor is the bottleneck for the preparation of a groundwater remediation plan. To have some level of assurance that the water treatment portion of the groundwater remediation plan can be approved by the agencies, EPM needs feedback from NRC and DEQ regarding the level of information needed for the treatability study and the design of the water treatment system. The proposals received from the vendors are sufficiently different and do not all appear to provide the information the agencies would like to see to select a vendor. NRC and DEQ will provide EPM questions to transmit to the water treatability study vendors prior to making a selection. EPM will then request that additional information from the vendors, distribute that information to NRC and DEQ, and will re-issue a summary evaluation and make a recommendation regarding the water treatment vendor. EPM requests this feedback from both agencies by COB July 24.

Other Issues

1. DEQ expressed concern about the Trust executing an oil and gas lease in relation to its status as a qualified settlement trust. No further progress can be made on the oil and gas lease until this is resolved. EPM will defer making a decision regarding the oil and gas lease until DEQ is satisfied that the execution of a lease will not adversely impact the Trusts status.

2. Lockhart Geophysical sent EPM a permit letter for EPM signature, to allow the performance of a seismic survey on the site. Lockhart Geophysical proposed to pay the Trust $125 for performance of the geophysical survey. EPM will notify Lockhart Geophysical that they will not be able to sign a permit letter at this time.

3. Cimarron Corporation sold the SW1/4 of Section 13, excluding the mineral rights, water rights, etc. EPM will look into this further to determine if the Trust now owns these rights associated with this property.

4. NRC released the SW 1/4 of Section 12 for unrestricted use. It is unimpacted and is located uphill, upgradient, and upstream from the rest of the Cimarron site. NRC expressed concern about the ability of a future landowner to perform activities that could impact the downhill/downgradient portion of the Cimarron site. DEQ may want to impose deed restrictions to prevent contamination of the site from future owners. DEQ will notify EPM of any restrictions they would impose upon the sale of this property.

There is no deadline for the sale of the property. DEQ and NRC will notify EPM when they are ready to dispose of this property. EPM will then arrange for an auction to sell this property. This will be discussed further during the July 31 - August 1 meeting.

5. NRC has released the property West of Highway 74 for unrestricted use, and this property does not have the potential to impact the Cimarron site. There is no deadline for the sale of the property. DEQ and NRC will notify EPM when they are ready to dispose of this property. EPM will then arrange for an auction to sell this property. This will be discussed further during the July 31 - August 1 meeting.

6. Two vendors have expressed interest in removing the coal liquefaction equipment for the value of the salvageable materials. Both companies will visit the Cimarron site to evaluate the value of the salvageable material. EPM will notify NRC and DEQ of further developments related to the dismantling and disposition of this material.

7. One entity, Tom Stewart of Stewart Industries, has expressed interest in the 26 acres or property that includes the former process buildings. More detailed discussions regarding proposed commercial/industrial operations that would be conducted on site, maintaining access via existing roads, continued use of the office building, uninhibited ability to conduct groundwater remediation for nitrate in the Well 1319 area, etc., are needed.

EPM will begin those discussions with Mr. Stewart.

(Action Items are in Red Bold Italics)

Cimarron Site Meeting Notes - Final July 31, 2012 Attendees:

David Cates Kelly Pham Ken Kalman Lifeng Guo Kurian Varughese Bill Halliburton Jeff Lux Inspection Closeout Dr. Gerald Schlapper, NRC Region IV, conducted an inspection of the radiation protection program on July 30. NRC is collecting split samples from select locations for confirmatory analysis. The decision was made to wait until the data was received to issue the inspection report, so that one report covers both the inspection and the inter-lab data comparison.

Environmental Sampling Event in Progress A total of 53 monitor wells and three surface water locations are being sampled. Samples from all locations are being analyzed for gross alpha, gross beta, isotopic uranium (activity), dissolved uranium (mass concentration), nitrate/nitrite, and fluoride. Some locations are also being analyzed for Tc-99. Samples from select locations are being split with NRC.

In addition, 500-ml aliquots will be retained from five locations in the Western Alluvial Area (WAA). These five aliquots will be combined to form one composite sample labeled COMP-WAA.

Another five 500-ml aliquots will be retained from Burial Area #1 (BA1). These five aliquots will be combined to form one composite sample labeled COMP-BA1. These composite samples will be analyzed for pH, chlorides, sulfate, ammonia, phosphorus, total dissolved solids, and total metals.

This data will be used in the OPDES permit application.

EPM will review the data after it is received from the lab. After data review is complete and data qualifiers area assigned as appropriate, the master database will be updated. EPM will then submit an electronic copy of the entire database, plus an electronic copy of the data for this sampling event, in Excel format to NRC and DEQ.

After receipt of data for NRC splits, NRC will perform an inspection closeout and issue an inspection report covering both the inspection and the inter-lab data comparison.

Water Treatment Vendor Selection EPM had drafted a vendor evaluation matrix that identified evaluation criteria and provided for a weighted ranking to select a vendor. A draft copy of the matrix, with sample rankings, was handed out for agency review. EPM has been discussing how to obtain needed information from vendors, with an emphasis on running a column test to breakthrough, and the vendor evaluation will be revised based on feedback from the vendors.

Information provided by both resin providers and water treatment vendors indicates that nearly any resin that is effective in removal of uranium from groundwater may be capable of adsorbing enough uranium to exceed the specified limit for fissile exempt material. If so, loading of resin to near breakthrough will have to be avoided to ensure that the resin does not lose this classification; this would create additional constraints and increased cost for shipping and disposal of loaded resin.

Page 1 of 9

(Action Items are in Red Bold Italics)

Cimarron Site Meeting Notes - Final July 31, 2012 Consequently, it was agreed that a treatability test will be performed to evaluate the extent to which a resin column can be loaded without exceeding the fissile exempt criterion of 1 gram of U-235 per 2 kilograms of loaded resin. A four-foot column, constructed of 2 or 3 PVC, will be loaded with resin, with sampling ports A through C installed at one foot intervals along the column, as shown on the attached Figure 1.

Groundwater collected during the pump test of extraction well GE-BA1-01 will be transported to a tank located near the test column, and this water (influent) will be fed into the top of the column at a rate of approximately 0.1 gallon per minute (gpm). Because the source of the influent is a large tank in which mixing has occurred, the concentration is not expected to vary significantly. At weekly intervals, a sample of influent, effluent and water from each of the three ports will be collected and submitted for laboratory analysis for uranium (mass concentration). As the resin adsorbs uranium it is anticipated that the sample collected from port A will begin to yield some uranium, while samples from B, C, and the effluent will not yield uranium. At some point in time (presumably two to four months from the beginning of the test), the sample collected from port C will yield a uranium concentration that is increasing relative to previous tests. At this time, a final set of water samples will be collected, and the introduction of influent to the test column will be terminated. The PVC column will then be cut into four one-foot sections (section 1 through 4), the resin from each one foot interval will be thoroughly mixed, and a sample of the resin will be sent for laboratory analysis for uranium (mass concentration). Theoretically, the top foot section of resin should be saturated, and the concentration of adsorbed uranium in the lower sections can be measured to determine how far beyond uranium-saturated resin the uranium-impacted groundwater can be found.

This data collected during this test will tell us the maximum loading rate as well as indicate what concentration we should expect to see in the effluent (or in an intermediate sampling port) when the resin is loaded to the maximum extent we want to allow.

EPM will generate a new evaluation matrix after receiving further information from water treatment vendors, and will recommend a vendor. DEQ and NRC will either approve the use of the vendor or will comment on the evaluation. EPM will generate an activity planning form covering the treatability test, and will send the APF to NRC and DEQ for review. NRC and DEQ will comment on the APF or notify EPM that they have no comment. Upon starting the test, data will be sent to NRC and DEQ prior to monthly status telecons, and the agencies will be kept informed of the progress of the test during each telecon.

Review of Subarea F Subsurface Soil Data NRC will defer review of the November 2007 Subarea F Subsurface Soil report until they receive the results from the confirmatory survey sampling that will be performed during the hydrogeologic pilot test. At that time, the subsurface soil data incorporated into that report, the 2005 Subarea F Final Status Survey data, and the subsurface soil confirmatory sample data will be evaluated together. If the data supports the release of subsurface soils, NRC will document that the soils in Subarea F are releasable for unrestricted use. This will provide needed support for the redefinition of the licensed site, so that only groundwater impacted portions of Subarea F need be maintained under license.

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(Action Items are in Red Bold Italics)

Cimarron Site Meeting Notes - Final July 31, 2012 Confirmatory Survey Design for Subarea F Subsurface Soil A map showing the approximate locations for injection and extraction wells, assessment wells, impoundment wells, and confirmatory sample borings was reviewed. EPM proposes to collect subsurface soil samples for a confirmatory survey from the boring for extraction well GE-BA1-01, as well as from four additional confirmatory survey borings labeled CS-BA1-01 through CS-BA1-04.

Samples will be obtained through the hollow stem auger with a 5-foot split barrel continuous sampler. Duplicate 500-ml soil samples will be collected from each one-foot interval of recovered sample for laboratory analysis. One sample will be collected for analysis by Lucas Newman Science & Technologies, Inc. (LNST), and the duplicate will be retained for analysis by NRC if and when requested by NRC. NRC will be advised of the number and locations of soil samples retained for analysis by NRCs contract laboratory.

Prior to sample collection, the recovered core will be scanned with a 2 X 2 sodium iodide detector and ratemeter. If any one-foot section of core yields elevated gamma scan readings (at least 1,000 cpm above background), a rapid analysis for uranium will be requested for the sample(s) yielding high readings. Should laboratory analysis indicate a uranium concentration exceeding 34 pCi/g total uranium (30 pCi/g plus mean background), offset borings will be advanced in four directions approximately 20 feet from the boring yielding the high result. Results for samples from offset borings will be collected to provide data for use in volumetric averaging, if necessary.

EPM will revise the draft APFfor the hydrogeologic pilot test to describe the confirmatory survey activities. EPM will submit the draft APF for NRC review. NRC will either comment on the confirmatory survey process or will notify EPM that they have no comment. EPM will schedule the pilot test after the APF is revised based on NRC comment.

Closure on Tc-99 in Groundwater NRC requested that EPM collect groundwater samples from monitor wells 1313, 1336A, and 1346, and a surface water sample from location 1208 for Tc-99 analysis. If the samples collected at these four locations yield less than the NRC limit of 3,790 pCi/1, NRC will document that groundwater remediation and future monitoring for gross beta and Tc-99 will no longer be required. This is important for the development of both in-process and post-remediation groundwater sampling programs for the license amendment request. EPM is collecting the samples and will submit the analytical results after data review is complete.

Rubble in Subarea F - Confirmatory Survey and Path Forward As a result of the confirmatory survey performed on rubble in Subarea F, NRC will issue a letter stating that the rubble in Subareas F and G is releasable for unrestricted use. This will provide the needed justification to remove portions of Subareas F and G from the license when the licensed site is re-defined.

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(Action Items are in Red Bold Italics)

Cimarron Site Meeting Notes - Final July 31, 2012 Oil and Gas Lease The company proposing to execute an oil & gas lease for minerals beneath Trust-owned property was notified that the Trust will not execute a lease at least through the end of 2012. EPM was notified that the Trust will be subject to forced pooling, and that EPM can contact the Oklahoma Corporation Commission (OCC) regarding forced pooling. EPM will contact the OCC to obtain specific information regarding forced pooling. It is our understanding that, under forced pooling regulations, the Trust will still receive compensation for extracted minerals, but no drilling activities will occur on Trust property.

Property West of Highway 74 The property west of Ehghway 74 is unimpacted. Two parties have expressed interest in the purchase of this property. NRC and DEQ are requested to notify EPM if the sale of this property can proceed, and if the sale can be transacted via a private auction involving only the two parties who have expressed interest in the property. EPM does not believe there need be any restrictions on the use of this property, since has already been released for unrestricted use and there is no reason to suspect nitrate or fluoride impact to surface water or groundwater, and future activities on the property could not impact the rest of the Trust property. EPM also recommended that the transfer of the 1/2 of the mineral rights currently owned by the Trust be included in the sale of this property to maximize the value of the property, and requested NRC and DEQ approval of the transfer of mineral rights with the surface rights to the property. NRC and DEQ will notify EPM when the property can be sold and will approve a private auction or recommend an alternative sale method.

Southwest Quarter of Section 12 The sale of this property was discussed. EPM explained that if this property is used only for ranching or farming, there is little potential for activities on this property to impact the site.

However, because this property is uphill, upstream, and upgradient of the site, the decision was made to wait to sell this property (and the associated mineral rights) until groundwater remediation is complete. EPM will notify interested parties that this portion of the site is no longer being consideredfor disposition.

Property with Buildings As the destruction of a portion of the exterior steel from the Ti02 building by recent winds illustrate, the value of the buildings at the site is declining every year the property is retained by the Trust. The buildings are becoming less of an asset and more of a liability every year. Stewart Industries is willing to negotiate for the purchase of this property, and EPM is generating a list of conditions to which Stewart Industries would have to agree to purchase the property. Examples of conditions include:

Lease the office building to the Trustee through license termination.

Provide free and unimpeded access through the property to the rest of the Trusts property.

Take possession of buildings and contents as is where is.

Provide free and unimpeded access to that portion of the property for which groundwater remediation for nitrate is required.

Accept a deed restriction preventing the use of groundwater for drinking water until nitrate and uranium are below drinking water criteria.

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Cimarron Site Meeting Notes - Final July 31,2012

© Lease includes electricity, gas, water, janitorial services, disposal of municipal solid waste, and maintenance for the duration of the lease.

If the office building (approximately $1,300 square feet) were leased at $8 per square foot per year (a reasonable rate for field office rental), an annual lease would be valued at $10,400. Over ten to twelve years (a reasonable duration to obtain license termination), the net present value of the lease (assuming the rate of lease cost increase is approximately equal to the rate of inflation) would be

$104,000 to $124,800, which is approximately equal to the assessed value of the property.

In addition, Stewart Industries would address the residual liabilities associated with the buildings and their contents instead of the trust, would convert the buildings from deteriorating structures to working facilities, would create jobs, and would maintain the property, none of which is being done by the Trust.

Because the value of this 26-acre parcel is only going to decrease with time, EPM recommends negotiating the sale of this property as soon as terms and conditions can be negotiated, and requested NRC and DEQ approval to do so. EPM will draft a list of conditions and terms of sale for NRC and DEQ approval prior to sending to Stewart Industries for their consent prior to negotiating the sale of this property, and will communicate the process to Mr. Stewart. NRC and DEQ will approve or comment on the list of conditions.

Southwest Quarter of Section 13 This property and the associated mineral rights were purchased by Kerr-McGee Corporation, transferred to Sequoyah Fuels Corporation, and then to Cimarron Corporation. The records are clear that each transfer included the mineral rights. Cimarron Corporation sold the property, but retained the mineral rights. The Quitclaim Deed transferring property from Cimarron Corporation to the Trust did not address these mineral rights. The company attempting to negotiate an oil and gas lease for Trust property provided EPM the results of research that indicates that the Logan County records imply that the Trust now owns the mineral rights for this 1/4 section of land (160 acres).

EPM will contact Matthew Paque (attorney for Tronox) to see if Tronox was aware that Cimarron Corporation owned those mineral rights. EPM will also review the Logan County records to determine if Cimarron sold the mineral rights in a separate transaction, and to make a copy of any relevant documents that may be found in the county clerks office.

Communication with Property Owners EPM has e-mail addresses and/or mailing addresses of those people who have expressed an interest in purchasing a portion of the Trust property. It has been nearly two months since they provided that information, and except for verifying that EPM has the correct address, no subsequent communication has been provided to these people. EPM will draft an information letter to be mailed and/or e-mailed to those people for NRC and DEQ review and comment.

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Cimarron Site Meeting Notes - Final July 31, 2012 Re-definition of Licensed Site EPM will propose to bring certain portions of the Trust property back under license, and will request to remove some areas from the license. The size and shape of the licensed site and the need to include the office building in the licensed area were discussed.

EPM will submit a revised draft licensed area map dividing the site into four areas:

Areas not currently under license which will remain not under license Areas currently under license for which release for unrestricted use will be requested Areas which will be under license, but which are releasable - barring a release or spill into one of these areas, no final status survey will be required Areas which will be under license, for which final status survey will be required to demonstrate compliance with either soil or groundwater criteria.

EPM will propose that the office building not be a licensed area. The office building will only be used to store samples prior to shipment for laboratory analysis, and to store exempt sources used for instrument calibration and as check sources. NRC asked if the quantity of material in the office building would be below exempt quantities. 10 CFR 70 does not identify an exempt quantity of special nuclear material, but 10 CFR 70.17 states, The Commission may, upon application of any interested person or upon its own initiative, grant such exemptions from the requirements of the regulations in this part as it determines are authorized by law and will not endanger life or property or the common defense and security and are otherwise in the public interest.

10 CFR 20 establishes quantities or radioactive material below which posting and control is not required. These exempt quantities are 10 times the quantity listed in Appendix C to 10 CFR 20.

The controlling limits for the Cimarron site are 0.010 pCi for both U-234 and U-235. The isotope of greater activity in groundwater at the Cimarron site is U-234, which since 2004 has never exceeded 3,000 pCi/1 in the most impacted well, TMW-09. Over 3,000 liters of water containing 3,000 pCi/1 of U-234 would be required to reach this limit. EPM will request (in the license amendment request) that NRC grant an exemption from licensing of this area due to the fact that a quantity of radioactive material that would require control will never be stored in the office building. EPM will generate a draft map of the site presenting the requested licensed area and Phase areas will be drawn. NRC will provide feedback to EPM on the appropriateness of the designated areas.

License Condition Amendment Requests A set of spreadsheets containing a list of the documents referenced in license conditions 10, 26, and 27(a), plus miscellaneous requirements in condition 23, 27(b), and 27(c) was provided for NRC review. Most license condition amendment requests will consist of deleting references, but the inclusion of several documents in conditions were included in the list. EPM requests that NRC review the list of recommended changes and provide feedback prior to the submittal of the license amendment request. NRC will identify proposed changes that will not be considered in the license amendment request.

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(Action Items are in Red Bold Italics)

Cimarron Site Meeting Notes - Final July 31, 2012 Authorization to increase the possession limit for U-235 from 1,200 grams to 6,000 grams was discussed. EPM will not request an increase in the possession limit.

Enercon Evaluation of 1,200 and 6,000 Gram Limit on U-235 Enercon explained that the authorization to possess up to 6,000 grams of U-235 would result in exceeding the limit in 10 CFR 70.24 for criticality accident alarm systems, and it is therefore not desirable to request an increase in the authorized possession limit for U-235 above the existing limit of 1,200 grams.

Pump Tests and Packer and Injection Tests Discussions related to the usability of the data that would be collected during packer and injection tests during the hydrogeologic pilot tests yielded the conclusion that the data collected is not worth the time and cost that would be invested in the tests. Due to the fractured nature of the sandstone in the Western Upland, U-Pond #1, and U-Pond #2 Areas, the decision was made to incorporate either infiltration galleries or horizontal wells into the groundwater remediation design. EPM will revise the activity plan for the hydrogeologic pump test to eliminate both packer tests and the injection test.

Update of Groundwater Flow Models Because EPM will propose an infiltration gallery or horizontal injection wells for injection of treated water into the Western Upland Area, the groundwater model for this area will not be revised.

Revision of this model will be considered after groundwater remediation has begun and data from upgradient and downgradient monitor well is available.

Groundwater flow models for the Western Alluvium and Burial Area #1 will be revised as needed based on the results of aquifer tests performed in these areas. After revising the models, EPM will submit the pump test data and models to NRC and DEQ. NRC and DEQ will either provide comments on the models or will accept them for use in designing numbers and locations of groundwater extraction wells in the groundwater remediation plan.

Disposition of Collected Water and Frac Tanks Frac tanks with a total capacity of approximately 3,500 barrels (147,000 gallons) will be mobilized to the site. Approximately 1,000 barrels of tankage will be placed near the new groundwater extraction well in Burial Area #1 (GE-BA1-01), and approximately 2,500 barrels of tankage will be placed near the new groundwater extraction well in the Western Alluvial Area (GE-WA-01). These tanks will be used to store groundwater produced during well development and aquifer testing.

Because frac tanks are often used in the oil field, they could be contaminated with NORM, which would impact subsequent release surveys. Consequently, each frac tank will be scanned for NORM prior to placement on site. After collection of all groundwater, a sample of water from each tank will be submitted for laboratory analysis for isotopic uranium and uranium concentration. A Land Application Permit may be required to dispose of this water by releasing it to the land surface. If a permit is required, either the pilot test will be delayed to obtain the permit, or the cost of frac tanks will increase significantly, because regulations governing the issuance of land application permits ensure that the process will likely require at least six months. DEQ will determine if the discharge Page 7 of 9

(Action Items are in Red Bold Italics)

Cimarron Site Meeting Notes - Final July 31, 2012 of the groundwater to the land will require a land application permit. If a land application permit will be required, EPM will initiate the permit application process.

Table 2 of Appendix B in 10 CFR 20 lists effluent limits for discharges to air and water. The concentration limits are equivalent to the radionuclide concentrations which, if ingested continuously over the course of a year, would produce a total effective dose equivalent of 50 millirem. The effluent limit for all three isotopes of uranium present at the site (U-234, U-235, and U-238) is 3 E-07 pCi/ml (300 pCi/1). The uranium activity in collected groundwater is likely to exceed this limit, particularly in the tankage in Burial Area #1. However, the water in these tanks will likely be applied to the ground in less than one week, and personnel will not be likely to ingest the water. Consequently, the application of effluent limits is not appropriate for this scenario.

The more appropriate concern will be the impact of the water on the concentration of uranium in the surficial soil to which the water is applied. The area over which groundwater will be spread will be determined by the quantity and the uranium activity in the water to be spread. EPM will provide a spreadsheet to NRC and DEQ illustrating how the potential impact to soil will be determined.

OPDES Permit Application EPM submitted an OPDES permit application in June 2012. The permit application was based on incomplete data and will be revised after more information is obtained from both the current groundwater sampling event and the hydrogeologic pilot test. DEQ will issue a notice of deficiency (NOD) identifying all information that will be required before DEQ can issue a permit.

EPM will respond to the NOD, providing a schedule for obtaining and providing the required information.

One additional item was not discussed during the meeting but is being included for completeness in these notes. The purpose for the submittal of the permit application was to provide DEQ sufficient information to informally calculate anticipated permit limits. A new DEQ permit writer, Kelly Pham, was assigned to this permit application. We did not communicate with Kelly that the reason for submitting a permit application before we obtained all the needed information was to provide sufficient information on the anticipated water for DEQ to calculate approximate permit limits.

EPM will contact DEQ to discuss the need for draft calculated permit limits.

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Cimarron Site Meeting Notes - Final July 31, 2012 (Action Items are in Red Bold Italics)

Figure 1 Resin Treatability Test Schematic Influent c

T Effluent Page 9 of 9

NRC - DEQ - EPM Telecon Notes October 9, 2012 (Red text indicates who will take the next action)

Attendees NRC Ken Kalman Lifeng Guo Varughese Kurian Blair Spitzberg Gerald Schlapper DEO EPM Bill Halliburton Mike Logan Jeff Lux David Cates Kelly Pham Paul Davis Pam Dizikes Monty Elder Administrative Issues

© Proposed 2013 Budget - A proposed budget will be submitted to NRC and DEQ by October 19th. EPM DEQ reimbursement fund agreement and invoice(s) - The reimbursement fund agreement was signed by EPM and sent to DEQ. DEQ Along with the proposed 2013 budget submittal, EPM will project expenditures for each account at the end of 2012 relative to the approved budget, and will determine if sufficient funds will remain to continue work into 2013 if the budget is not approved by the end of the year. EPM License Issues Response to letter on Tc NRC will review the data and, if appropriate, will send a letter stating that no future monitoring or remediation for Tc-99 will be required. NRC Letter from NRC re: Subarea F rubble - NRC issued a letter stating that the rubble in Subarea F is releasable for unrestricted use. No Action Required Confirmatory survey for subsurface soil in Subarea F - Five soil borings were advanced at locations identified in the activity plan for the hydrogeologic pilot test. Soil samples were collected (as recovery allowed) from each one foot interval. Soil boring logs include the gamma counts for each one foot interval. No one-foot interval exceeded the 1,000 count per minute threshold, so the soil sample yielding the highest gamma count was sent to GEL Laboratory for analysis. Analytical results for four of the five samples have been received, and the highest activity for these samples was approximately 7 pCi/g total uranium. No offset borings were advanced as described in the activity plan. Copies of the soil boring logs will be e-mailed to NRC and DEQ. NRC will identify soil samples which EPM will send to NRCs laboratory for analysis. These samples will constitute the confirmatory samples for Subarea F. NRC Annual environmental sampling - The data from the 2012 annual environmental sampling event has been received, reviewed, and imported into the EQuIS database. The data for discrete locations was e-mailed to NRC and DEQ on October 2. The data for composite samples was sent to NRC and DEQ on October 9. The comprehensive database (containing all historic as well as recent environmental data) will be placed on the Sharepoint site by October 12. Maps which are similar to Figures 2, 3, and 4 from the Cimarron Evaluation of Potential Groundwater Remediation Technologies report, revised to include the 2012 data, are being generated. These maps will show that the 1 of 3

groundwater plumes are not static. EPM believes the 2013 annual sampling event should be moved to early in 2013, and that a comprehensive data set (120-140 wells) should be generated prior to submission of the groundwater remediation plan. The proposed 2013 budget will provide funding for such a sampling event. EPM requests that NRC and DEQ review the maps and comment on the need for another comprehensive data set. The last comprehensive sampling event was in 2004. EPM-Deliver Excel data file and maps. NRC and DEQ - provide feedback on 2013 sampling event.

1,200 gram or 6,000 gram limit on U-235 - EPM will not request an increase in the quantity of U-235 in a license amendment request, because this would likely trigger 10-CFR 70.24 requirements. No Action Required

© Proposed license condition changes - EPM distributed a table containing a summary of the condition changes that will be requested in the license amendment request. EPM requested that NRC identify any changes which would be of concern to NRC. NRC Groundwater Design Issues Impact of no irrigation or impoundment on licensed site - EPM e-mailed a description of changes to the groundwater remediation plan that result from eliminating irrigation. Not using irrigation for disposal of water during Phase 2 eliminates the need for a large impoundment. EPM requested feedback from NRC and DEQ on this paper, as well as identification of other changes not identified in the paper. NRC and DEQ OPDES permit application - Changes in the groundwater remediation plan significantly changes the content of the OPDES permit application. To provide for a streamlined transition from Phase 1 to Phase 2, EPM will submit an OPDES permit application that includes anticipated flow and concentrations for both Phase 1 and Phase 2 discharges.

Since groundwater from the Well 1319 area will now be routed to the tank battery instead of used for irrigation, DEQ suggested collecting a groundwater sample from this area for the same parameters for which recent composite samples from BA #1 and the WAA were analyzed. EPM will send the laboratory reports for the composite samples to DEQ, as well as a letter revising the schedule of submittal of a revised OPDES permit application.

EPM Hydrogeologic pilot test - Installation and development of all wells is complete.

Confirmatory subsurface soil sampling is complete. Geotechnical borings in the tank battery location are complete. Cuttings were contained in drums, which were sampled for analysis for uranium. Aquifer testing will begin the week of October 15th. Because the groundwater extraction well installed in the Transition Zone material in BA #1 produces less than one gallon per minute, this well could not be well developed. EPM and Enercon will perform as much of a pump test as can be performed for this well, but will also conduct slug tests on at least six wells in the Transition Zone material to determine if installation of a groundwater recovery trench will be more effective than groundwater extraction wells in this area. After pump tests are completed, samples of the water in the frac tanks will be collected and submitted (along with samples collected during the pump test) for uranium and nitrate analysis prior to disposal. After all work is completed, EPM will issue a report on the hydrogeologic pilot test. EPM Water treatability study - Two column tests will be conducted to evaluate the resins effectiveness in removal of both uranium and nitrate, as well as to determine the extent to which, once resin is saturated with nitrate, the resin will preferentially adsorb uranium 2 of 3

and release nitrate. These factors are critical in the design of the treatment system. EPM has generated a draft activity plan for this test and sent it to Clean Harbors for comment.

EPM will send a copy of the draft activity plan to NRC and EPM for comment. The activity plan should be finalized by October 24th. The current schedule is to begin the test the first week of November. NRC and DEQ - comment on draft activity plan.

EPM - Execute contract with Clean Harbors, revise activity plan, and begin water treatment test.

Other Issues

© An article was published in the Logan County Courier on September 13th, based on the public information that was placed on the CERT website fwww.certoklahoma.com). No Action Required

© Section 13 and other property - Tronox has stated that only the property associated with the license was to have been transferred from Tronox / Cimarron Corporation to the Trust. Mineral rights associated with the Section 13 property and a partial interest in a portion of Section 7, T16N, R3W are not associated with the licensed site and are therefore retained by Tronox. Tronox will send an e-mail to EPM addressing these issues. EPM will forward that information to NRC and DEQ. EPM

© Property West of Highway 74 - NRC stated that, provided restrictions placed on the property prohibit drilling any kind of well, an auction may be scheduled. Questions about DEQs enforcement authority restrictions on the property are yet to be resolved.

DEQ will communicate with NRC regarding a vehicle which can satisfy both NRCs and DEQs concerns within the existing regulatory framework. DEQ and NRC 25 acres with buildings - EPM advised NRC and DEQ that EPM anticipates receipt of an offer from Stewart Industries for the purchase of this property. The inability to obtain environmental liability insurance on a property with known impact (of greatest concern is the coal tar in the processing equipment) suggests that a lease-purchase arrangement may enable Stewart Industries to remove the coal liquefaction equipment, enabling them to obtain the insurance necessary to complete the transaction. Mr. Stewart will also propose that Stewart Industries be granted first right of refusal regarding the rest of the property (east of Highway 74), such that they could expand operations in the future if business conditions warrant. EPM will forward the offer to NRC and DEQ when received. EPM 3 of 3

Attendees Jeff Lux Ken Kalman David Cates Mike Logan Lifeng Guo Pam Dizikes Bill Halliburton Gerald Schlapper Kelly Pham Paul Davis Administrative Issues October 9 telecon notes - Revisions were made to the telecon notes based on comments from DEQ. NRC had no further comments. Final notes will be sent out the week of November 19th.

EPM Proposed 2013 budget - Several changes will be made to the proposed 2013 budget, including:

1. Nearly all costs associated with the water treatability test, will be transferred to 2013, including:

o The cost to pump water from wells and transport the water to the influent tanks, o The cost to dispose of the water generated during the water treatability test, o HP costs associated with designating and controlling a radiologically restricted area once the resin has absorbed at least 1 OX the Appendix C quantity of uranium, o All analytical costs

2. Costs for sampling and analysis of approximately 120 wells during the annual environmental sampling event will be divided between Tasks 2 and 4.

The revised budget will be submitted as revision 1 to the proposed budget. EPM DEQ reimbursement - A reimbursement fund agreement has been in place since June. EPM has not yet received any quarterly statement(s). DEQ will check on the status of 2nd and 3 rd quarter statements. DEQ License Issues Response to letter on Tc NRC will send a letter addressing the discontinuance of further monitoring or remediation for Tc-99 within the next two weeks. NRC Confirmatory survey for subsurface soil in Subarea F - EPM sent the results from 5 subsurface soil samples to NRC. The highest U activity in any sample is less than 12 pCi/g total U. EPM sent the soil boring logs, including the gamma scan readings recorded at one foot intervals, to NRC and DEQ October 12. EPM is storing duplicate samples of all the samples identified in boring logs, pending NRC selection of samples to use as confirmatory samples. NRC will notify EPM which samples to send for analysis within 3-4 weeks. NRC Annual environmental sampling - The analytical data from the 2012 annual environmental sampling event were sent to NRC and DEQ on October 9. Maps showing the current extent of uranium, nitrate, and fluoride exceeding their criteria are being generated and should be sent to NRC and DEQ the week of November 19th. EPM recommends that the 2013 annual environmental sampling be conducted early in 2013, and that it include a comprehensive sampling of all wells in and surrounding areas where uranium, nitrate, and fluoride exceed their respective criteria. EPM will submit a proposed list of wells to sample early in 2013. EPM NRC - DEQ - EPM Telecon Notes November 13, 2012 (Red text indicates who will take the next action) 1 of 3

Release surveys for frac tanks used to store development, purge, and pump test water will begin after the water is removed for disposal. EPM NRC is going through some organizational changes. Keith McConnell and Paul Michalak are now both gone. Drew Persinko has replaced Keith McConnell.

Inspection Report - NRC Region IV received the annual environmental program data, and is completing the inspection report from the June 4-5 inspection. NRC Groundwater Design Issues Hydrogeologic pilot test - Well installation, aquifer testing, and sampling of all media is complete. One laboratory data package is yet to be received. Disposal of well development, purge water, and aquifer testing water is beginning this week. The groundwater extraction well in Burial Area #1 produced very little water, and a long-term pump test could not be conducted using this well as a pumping well. Consequently, slug tests were conducted on six wells installed in Transition Zone material. EPM will:

1. Send NRC and DEQ a spreadsheet containing all laboratory data for soil, groundwater, and contained water.

2. Prepare a report on the hydrogeologic pilot test describing the work performed, providing the aquifer test data and the interpretation of that data, and discussing the impact of the work on the groundwater remediation design.

3. Schedule a meeting with NRC and DEQ hydrogeologists to discuss the use of the aquifer test results on the revision of the groundwater flow model.

EPM plans to submit the report by the end of the year. EPM Groundwater remediation plan - At this time, EPM believes the groundwater remediation plan will include the following changes relative to the conceptual design presented to the public during the June 4 public meeting:

1. No irrigation will be used - all water not reinjected into upland sandstones to flush the chemicals of concern to the alluvium will be discharged to the Cimarron River.

2. Horizontal injections wells will be used in the Well 1348, Western Upland, U-Pond #1, and U-Pond #2 Areas instead of vertical groundwater pumping wells.

3. Groundwater recovery trenches will be installed in the transition zones instead of vertical groundwater pumping wells.

4. A substantially greater volume of water will be produced from the Western Alluvial Area than had been thought.

5. A second treatment system, removing uranium and nitrate from Western Alluvial Area groundwater, may be added to the groundwater remediation plan to maintain nitrate loading in the discharge to the Cimarron River below daily loading limits.

6. A second discharge line from a second treatment plant may be permitted to provide for the greater anticipated total flow.

7. Groundwater from the Well 1319 area will be piped to one of the water handling/treatment areas.

NRC - DEQ - EPM Telecon Notes November 13, 2012 (Red text indicates who will take the next action) 2 of 3

These changes will be reflected in a revised conceptual plan, presenting approximately the same level of detail as presented in the conceptual plan presented to the public on June 4th. EPM OPDES permit application - Due to the changes listed above, the OPDES permit application initially submitted in April 2012 will be withdrawn. A new permit application will be re-submitted in 2013 after the changes in the groundwater remediation strategy presented above have been better quantified via groundwater modeling. EPM Water treatability study - EPM is still in the process of working out contractual issues with Clean Harbors. Clean Harbors tells us they have experienced some problematic issues working for Trusts in the past. They are struggling with the release waiver attached as Appendix C to the master services agreement. We hope to have a contract in place before the end of November.

The activity plan has been revised based on comments from NRC and DEQ, excluding some technical discussion, some of which will be answered by the test. Due to the fact that the resin may accumulate more than ten times the Appendix C quantity of uranium, the area within which the test will be conducted will be designated a radiologically restricted area, and radiological controls will be implemented during the test. We anticipate the test will begin in December.

EPM Well 1319 area - Due to the removal of irrigation from the groundwater remediation plan, groundwater extracted from this area will be piped to a treatment/storage area to be addressed with other Phase II groundwater.

Other Issues Section 13 property - EPM is waiting to receive an e-mail from Tronox explaining why Tronox still owns mineral rights to Section 13 and other property which may have been owned by Cimarron Corporation, but which was not transferred to the Trust on the Effective Date. Tronox Property west of Highway 74 - EPM will generate a draft sales agreement which will include terms agreeing not to install water, oil or gas wells on this property. The draft sales agreement will be sent to NRC and DEQ to review. Upon their approval, an auction will be scheduled for the sale of the property. EPM 25-acre property with buildings - Stewart Industries (SII) submitted a lease/purchase offer. EPM will decline to accept the offer, and will discuss alternative terms with SII.

Alternatives include selling the property as is, with the Trust either retaining responsibility to remediate the groundwater in the Well 1319 Area, or excepting that property from the sale. The Trust will not consider a first right of refusal on adjacent property. EPM NRC - DEQ - EPM Telecon Notes November 13, 2012 (Red text indicates who will take the next action) 3 of 3

NRC - DEQ - EPM Telecon Notes December 11, 2012 (Red text indicates who will take the next action)

Attendees Jeff Lux Mike Logan Bill Halliburton Ken Kalman Lifeng Guo Kurian Varughese David Cates Mike Broderick Kelly Pham Paul Davis Gerry Williams Joe Nardi Brad Brittain Administrative Issues November 13 telecon notes - No comments were received. Final notes will be sent by December 14. EPM Proposed 2013 budget - Several changes were made to the proposed 2013 budget, including:

1. Nearly all costs associated with the water treatability test were transferred to 2013, including:

o The cost to pump water from wells and transport the water to the influent tanks, o The cost to dispose of the water generated during the water treatability test, o HP costs associated with designating and controlling a radiologically restricted area once the resin has absorbed at least 10X the Appendix C quantity of uranium, o All analytical costs

2. Costs for sampling and analysis of approximately 120 wells during the annual environmental sampling event were divided between Tasks 2 and 4.

3. Costs to drill and sample six additional monitor wells to further plume delineation.

The revised budget was submitted as revision 1 to the proposed budget on November 29. Rev 1 does not include money for additional aquifer testing, nor does it include money to install new monitor wells. DEQ requested a breakdown of costs for tasks. EPM will provide a breakdown of costs for activities within tasks in a separate submittal. EPM DEQ reimbursement - DEQs accounting department will send statements for the 2nd and 3rd quarter of 2012, likely before the end of the year. DEQ License Issues A report on the NRC inspection conducted in July was sent December 5, 2012. There were no findings or violations. Data for annual environmental monitoring samples split between EPM and NRC showed sufficient correlation.

The following instruments have been received on site:

Ludlum 19 micro-R meter Ludlum 2360 ratemeter and Ludlum 43-93 alpha/beta detector Ludlum 12 ratemeter and Ludlum 44-10 gamma survey meter Ludlum 3 03 0E sample counter and Ludlum 43-10-1 detector The following sources have been received on site:

Cs-137 (gamma source - 0.25 pCi)

Th-230 (alpha source - 176.5 Bq)

Tc-99 (beta source - 229.4 Bq) 1 of 3

NRC - DEQ - EPM Telecon Notes December 11, 2012 (Red text indicates who will take the next action)

Response to letter on Tc NRC will send a letter addressing the discontinuance of further monitoring or remediation for Tc-99, likely within the next two weeks. NRC Confirmatory survey for subsurface soil in Subarea F - EPM sent the soil boring logs, including the gamma scan readings recorded at one foot intervals, and the laboratory analytical results for the soil sample submitted to GEL for analysis, to NRC and DEQ October 12. The highest U activity was less than 12 pCi/g total U. EPM is storing duplicate samples of all the samples identified in boring logs, pending NRC selection of samples to use as confirmatory samples.

NRC will notify EPM which samples to send for analysis within the next four weeks. NRC Annual environmental sampling - The analytical data from the 2012 annual environmental sampling event were e-mailed to NRC and DEQ October 2. Data obtained during the hydrogeologic pilot test, along with maps showing the current extent of uranium, nitrate, and fluoride exceeding their criteria were e-mailed to NRC and DEQ November 28th. This data showed that the extent of groundwater exceeding NRC and DEQ criteria for uranium and nitrate is shifting. EPM e-mailed NRC and DEQ a proposed list of wells to sample early in 2013 on November 16th. It appears that uranium is not fully delineated in Burial Area #1, and nitrate is not yet fully delineated in the Western Alluvial Area. EPM recommends the installation of additional monitor wells, which should then be sampled simultaneously with those in the list sent November 16th. EPM Release surveys for frac tanks used to store development, purge, and pump test water will begin after the water is removed for disposal. EPM Groundwater Design Issues Hydrogeologic pilot test - Disposal of well development, purge water, and aquifer testing water is ongoing. EPM will schedule a meeting with NRC and DEQ hydrogeologists to discuss the use of the aquifer test results on the revision of the groundwater flow model. EPM will prepare a report on the hydrogeologic pilot test describing the work performed, providing the aquifer test data and the interpretation of that data, and discussing the impact of the work on the groundwater remediation design. EPM Groundwater remediation plan - The groundwater remediation plan now consists of:

1. Groundwater extraction wells in the Western Alluvial Area (WAA) and Burial Area #1 (BAl).

2. Groundwater recovery trenches will be installed in the transition zones instead of vertical groundwater pumping wells.

3. A substantially greater volume of water will be produced from the Western Alluvial Area than had been thought.

4. Groundwater from the Well 1319 area will be piped to one of the water treatment areas.

5. A water treatment system will remove uranium from the BAl groundwater.

6. All BAl treated water not reinjected into upland sandstones to flush chemicals of concern to the alluvium will be discharged to the Cimarron River, along with all groundwater produced from the WAA.

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7. Horizontal injections wells will be used in the Well 1348, Western Upland, U-Pond #1, and U-Pond #2 Areas instead of vertical groundwater pumping wells.

8. A water storage tank battery (or batteries) will be installed instead of an impoundment.

9. A second treatment system, removing uranium and at least some nitrate from WAA groundwater, may be added to the groundwater remediation plan to keep nitrate in the discharge to the Cimarron River below daily loading limits.

10. A second discharge line from the second treatment plant may be permitted to provide for the greater anticipated total flow.

11. If nitrate concentrations indicate the need to distribute the discharge in the river, rather than install a point source discharge, a diffusion system will be included in the design.

These changes will be reflected in a revised conceptual plan, presenting approximately the same level of detail as presented in the conceptual plan presented to the public on June 4th. EPM OPDES permit application - Due to the changes listed above, the OPDES permit application initially submitted in April 2012 was withdrawn November 29th. A new permit application will be re-submitted in 2013 after the changes in the groundwater remediation strategy presented above have been better quantified via groundwater modeling. EPM Water treatability study - Contractual issues have been resolved with Clean Harbors, and a contract should be in place by December 14. Resin within the resin columns can accumulate more than ten times the Appendix C quantity of uranium, so the area within which the test will be conducted will be designated a radiologically restricted area, and radiological controls will be implemented during the test. The test will begin in January. EPM Other Issues

© Section 13 property - EPM received an e-mail from Tronox explaining why Tronox owns mineral rights to Section 13 and other property which may have been owned by Cimarron Corporation. EPM forwarded that e-mail to NRC and DEQ on November 19th. EPM requests confirmation of the adequacy of Tronox explanation from NRC and DEQ.

NRC and DEQ Property west of Highway 74 - EPM drafted a sales agreement which will include an agreement not to install water, oil or gas wells on this property. The draft sales agreement is in legal review, and will be sent to NRC and DEQ after revision from legal review. Upon NRC and DEQ approval, an auction will be scheduled for the sale of the property. EPM 25-acre property with buildings - Stewart Industries (SII) submitted a lease/purchase offer. EPM declined the offer, and has initiated discussions with SII for the sale of the property as is - where is, with the Trust either retaining responsibility to remediate the groundwater in the Well 1319 Area, or excepting that property from the sale. EPM NRC - DEQ - EPM Telecon Notes December 11, 2012 (Red text indicates who will take the next action) 3 of 3