CROW BUTTE RESOURCES, INC.

86 Crow Butte RoadP.O. Box 169 (308) 665-2215Crawford, Nebraska 69339-0169 (308) 665-2341 - FAX

July 1, 2005

Mr. Gary Janosko, Branch ChiefFuel Cycle Licensing Branch, FCSSc/o Document Control DeskU.S. Nuclear Regulatory CommissionWashington, DC 20555

Re: Source Materials License SUA-1534Docket No. 40-8943SM6-12 Monitor Well Excursion

Dear Mr. Janosko:

On June 27, 2005 during routine biweekly water sampling of Crow Butte Resources, Inc. (CBR)shallow monitor well SM6-12, the multiple parameter upper control limit (UCL) for conductivity andthe single parameter upper control limit (UCL) for chloride was exceeded. As required by LicenseCondition 11.2 of Source Materials License SUA-1 534, a second sample was collected within 48 hoursand analyzed for the three excursion indicator parameters. The results of the second sample exceededthe multiple UCL for conductivity and the single UCL for chloride.

CBR notified Mr. Stephen J. Cohen by telephone on June 28, 2005 of the confirmation of theexceedance as required in License Condition 12.2. A confirmation e-mail was sent on the same date.Laboratory results for the sample analysis for SM6-12 are attached. In addition, graphs are attached forthe three excursion indicator parameters and water level that cover the period from January 10,2005 toJune 27,2005.

CBR believes that this apparent excursion is due to increased groundwater levels caused by thesignificant amount of precipitation received at the facility this spring and is not caused by miningactivity. This conclusion is supported by the following indications:

1. Water level in the well has increased approximately 4 feet this spring and is currently withinapproximately 11 feet of the top of the casing at the well. SM6-12 is located in Mine Unit 6 in anarea of high groundwater near the springs that form the source of English Creek. Groundwaterquality in this area is under the influence of surface water.

CROW BUTTE RESOURCES, INC.

Mr. Gary JanoskoJuly 1, 2005Page 2

2. The chloride concentration has increased from normal concentrations of 4 mg/l to 26 mg/].If the monitor well were affected by an excursion of mining solutions, it would be expected that thechloride concentration would be much higher due to its high concentration in the lixiviant (whichtypically contains chloride concentrations in excess of 500 mg/l) and its mobility in the environment.

3. There are very few injection wells in operation near SM6-12 (

CROW BUTTE RESOURCES, INC.

Mr. Gary JanoskoJuly 1, 2005Page 3

cc: U.S. Nuclear Regulatoiy CommissionMr. Stephen J. Cohen - ADDRESSEE ONLYFuel Cycle Licensing BranchMail Stop T-8A33Washington, DC 20555

Mr. Steve Collings - CBR, Denver

SM6-12

Alkalinity

400 -

350 -

300 -4,wi

= 250 -

200 -

150 -

0 -_

%~~~~~~~ 'PO Po 'P ' it t git elH % t @OA e @ % @

inn

Date

L-Alk MCL --Alkalinity-Alk SCL|

Tuesday, June 28, 2005

CWO

SM6-1 2

Conductivity

850

750736

613

650 -

e 550C

450*

350*

25,n

0V+2 ,2 I 2 PO wo eo PO V/o POo zo POs ooO POgO%

I I I I I I I I I I I I i I I

bt~~~~~< k0 ~ ¢> ) lb 'lb ,O O43 'lb b6\g,° SK tg / 9 8~b

Date

- Cond MCL - Conductihity - Cond SCL

Tuesday, June 28, 2005

SM6-12

Chloride

30 T

25 +

23

1920 +

0

la07E

15 4-

10 +

5-tp L L5' & ON d' -

*s > k? >p (P9 (P *p 7@Pp ¢ ° P P v

SM6-1 2

16

14

12

10.4.0)0,

UL8

6'I-'Water Level I

4

2

0L L LO) U7 L L m L( LO LO L L LO

c N cC CN No M LO -% -X N O Z_ r 0 coNn N r

Date

Perimeter Monitor WellsShallow Monitor WellspCM8-0 9

.SM8-13.Mc-6jCM8-7

.CM8-5SM8-12 .SMS-1 1

Weubouse 27.SM8-09

.CM8-4,sM8-08

,CM8-3

cs4

ASI48-5.SM8-25

WeIKhOUS 37

.cM8g-

DiM84.$M8-29

.SM8-3

.CM6-1O

SM6-2 8

CM6-9

O

.CM6-8

pCM6-7

Sample Date

Analysis Date

612705

6/27/05

Crow Butte ProjectMonitor Well Laboratory Report

Alkalinity Conductivity ChlorideWell ED (mg/L) Alk SCL Alk MCL (Itmho/cm) Cond SCL Cond MCL (mg&L) Cl SCL Cl MCL

SM4-2

SM4-3

SM5-20

SM5-21

SM5-22

SM5-23

SM5-24

SM5-25

SM7-14

SM7-15

SM7-16

CM5-18

CM5-20

CM5-21

CM6-18

CM6-19

SM6-1

SM6-2

SM6-9

SM6-11

SM6-12

SM6-14

SM6-18

SM6-20

CM6-12

190

188

180

180

180

178

170

175

138

150

145

305

335

300

300

300

210

205

230

220

250

203

205

215

300

513

361

268

284

278

287

264

264

180

200

199

441

445

441

442

452

325

291

336

318

348

301

305

323

393

301

223

236

232

239

220

220

150

167

166

367

371

367

368

377

271

242

280

265

290

251

254

269

640

640

510

470

470

470

450

470

330

350

330

1940

2350

1950

1940

1940

550

560

490

490

670

560

570

570

1950

1256 1039

1251

750

755

773

753

700

724

618

495

451

2916

2929

2910

2909

2880

903

1008

815

691

736

936

837

717

1043

625

629

644

628

583

604

515

413

376

2430

2441

2425

2424

2400

752

840

679

576

613

780

697

598

13

11

5.2

4.1

3

3

4.8

6.3

2.6

1.9

1.9

181

230

181

181

181

8.3

12

4.8

5.6

25

13

16

14

127

38

32

29

33

28

28

31

65

24

24

315

310

275

302

295

47

85

51

24

23

58

33

26

88

32

27

24

28

24

24

26

54

20

20

263

258

229

252

246

39

71

42

20

19

48

27

22

233436 364 2794 2328 189 279

c0- .-Monday, June 27, 2005 Page 1 of2Monday, June 27, 2005Page I of 2

Sample Date

Analysis Date

6fl7105

6/27/05

Crow Butte ProjectMonitor Well Laboratory Report

Alkalinity Conductivity Chloride

Well IDI (mgIL) Alk SCL Alk MCL (tmbholcm) Cond SCL Cond MCL (mgIL) Cl SCL Cl MCL

CM6-13

CM6-14

CM6-15

CM6-16A

CM6-17

305

300

290

295

300

446

436

444

418

442

372

364

370

348

368

1940

1930

1950

1930

1940

2866

2909

2779

3082

2779

2388

2424

2316

2568

2316

185

178

183

185

185

285

297

287

338

275

238

247

239

282

229

Monday. June 27, 2005 Page 2 of 2

Mxxbay, June 27, 2005 Page 2 of 2

Sample Date -

Analysis Date

612N5

6I/2805

Crow Butte ProjectMonitor Well Laboratory Report

Alkalinity Conductivity Chloride

Well ED (mg/L) Alk SCL Alk MICLI (limho/cm) Cond SCL Cond ICL| (mgfL) aI SCL Cl MCL

SM8-1

SAM8-2

SM18-3

SM8-4

SM8-5

SM8-8

SM8-9

SA8-11

CM6-1

CMA6-2

CM6-3

CA18-1

CM8-2

CM8-3

CM8-4

CM8-5

CM8-6

SM44

SM4-6

SM5-1

SM5-2

SMS-3

SM5-4

SAM5-5

SM5-6

230

235

230

220

255

233

228

225

290

295

295

300

270

275

308

298

305

205

275

240

190

230

205

235

210

374

353

331

323

346

340

353

323

432

436

441

455

395

432

428

425

432

266

361

363

287

351

327

367

324

312

294.

276

269

288

283

294

269

360

364

367

379

329

360

356

354

360

222

301

302

239

293

272

306

270

530

510

530

520

640

510

520

540

1910

1940

1930

2000

1930

1960

1940

1930

1930

630

680

620

460

610

580

610

580

763

778

720

819

749

864

886

792

3168

2822

2808

3110

3125

3211

3125

3067

3067

1099

1103

1032

714

1048

973

1041

922

636

648

600

683

624

720

738

660

2640

2352

2340

2592

2604

2676

2604

2556

2556

916

919

860

595

874

811

868

768

7.4

4.4

6.1

7.2

15

5.2

5.2

7

183

181

181

185

179

185

185

181

181

12

13

12

5.9

13

19

11

25

24

24

25

23

24

23

24

334

279

269

372

334

367

328

328

317

62

34

57

27

81

66

65

21

20

20

21

19

20

19

20

278

233

224

310

278

306

274

274

264

52

28

47

22

68

55

54

13 47 39

Tuesday, Junc 28, 2005 Page I of 2

Sample Date

Analysis Date

6/28/05

6/28/05

Crow Butte ProjectMonitor Well Laboratory Report

Alkalinity Conductivity ChlorideWell ID (mg/L) Alk SCL Alk MCL (Imho/cm) Cond SCL Cond MCL (mg/L) Ca SCL

SM7-17

SM7-18

SM7-19

SM7-23

CM5-6

CM5-7

CM5-8

CM5-9

CM5-10

CM5-1

CMS-12

CMS-19

SM6-12

SM6-28

PR8

IJ13P

195

135

140

180

300

300

310

303

290

310

298

365

250

270

610

590

209

217

212

278

458

433

448

433

403

438

456

425

348

351

484

415

174

181

176

232

382

361

373

361

336

365

380

354

290

293

403

346

440

350

350

490

1880

1880

1900

1900

1910

1980

1920

2600

670

670

4140

4170

539

513

599

850

2844

2870

2876

2864

2943

2897

2982

2916

736

778

2866

2900

449

427

499

708

2370

2392

2396

2387

2453

2414

2485

2430

613

648

2388

2417

3.7

3.3

2.2

5.2

178

178

178

178

178

183

178

281

26

11

444

433

30

23

38

59

292

288

289

289

333

307

323

320

23

24

282

278

Cl MCL

25

19

31

50

244

240

241

241

277

256

269

266

19

20

235

232

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