If by "peeling off" you mean the mulm that is sloughing off the pellets then that's normal. However, the fact that they are clumping due to this suggests to me that you are not keeping up with the production of mulm. I'd recommend getting a bigger reactor so that you can send more flow through the reactor. I've used the TLF150 as a biopellet reactor before and found it very difficult to use for this purpose. there are lots of good reactors out there designed for this type of media. Also, if you upgrade your reactor you can upgrade your pellet reactor pump and have much better control over how much flow gets into the reactor. If getting a bigger reactor is not in the cards then you will have to manually agitate the pellets frequently to keep up with all that bacteria byproduct.
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