DRC-2011-007040 - 0901a0688024ed77

Julys, 2011
Denison Mines (USA) Corp.
1050 17th Street, Suite 950
Denver, CO 80265
USA
Tel: [phone]
Fax: [phone]
www.denisonmines.com
VIA PDF AND FEDERAL EXPRESS
Mr. Rusty Lundberg
Co-Executive Secretary
Utah Water Quality Board
State of Utah Department of Environmental Quality
195 North 1950 West
P.O. Box 144810
Salt Lake City, UT 84114-4810
Dear Mr. Lundberg:
Re: Southwest Investigation and Installation of Monitoring Wells MW-36 and MW-37:
Violation and Compliance Order, Docket No. UGW11-05
Notice of
This letter is in response to the foregoing Notice of Violation (the "Notice") dated June 2, 2011, which
Denison Mines (USA) Corp. ("DUSA") received on June 6, 2011. The Notice lists two violations (the
"Violations") of the White Mesa Mill's (the "Mill's") Ground Water Quality Discharge Permit No.
UGW370004 (the "Permit"), which resulted from the May 2011 drilling program at the Mill.
Pursuant to Utah Code Annotated 19-5-111 (1953 as amended), this letter describes:
a) the root cause of the noncompliance;
b) steps that have been or will be taken to correct the violation;
c) date when compliance was or will be regained; and
d) steps taken or to be taken to prevent reoccurrence of the noncompliance.
DUSA responds as follows;
1. Part I.H.4(c) of the Permit for failing to provide at least a 14 calendar written notice to allow the
Executive Secretary to observe all drilling and well installation activities for the Southwest
Investigation.
[The part of the Permit cited refers to the installation of MW36 and MW37, not the Southwest
Investigation. DUSA assumed the violation was intended to refer to the MW36 and MW37
installation, and has answered accordingly.]
a) Root Cause of the Noncompliance
Part I.H.4(c) of the Permit required written notice 14 days prior to drilling to allow DEQ personnel to
observe the activities. Unlike the other requirements of this Part of the Permit which had fixed dates for
performance, the drilling program start date was unspecified. All other fixed dates and requirements in
this Part were diarized immediately upon DEQ approval of the Permit revision containing the requirement
for the monitor well drilling. The single requirement, drilling startup, without a specified date was not
electronically diarized while contracting and planning for drilling was underway. The intention was to
provide the 14-day notice one the drilling date had been established. However, given the number of other
simultaneous regulatory requirements and activities underway during April and May 2011, this non-
diarized requirement was inadvertently overlooked.
b) steps That Have Been Taken to Correct the Violation
The following steps have been taken to correct the violation:
See item c, below.
c) Date When Compliance Was or Will be Regained
DEQ personnel reviewed the locations of the installed wells and piezometers during a site visit during the
week of May 17, 2011. Subsequently, DUSA provided DEQ written documentation (a grid map) of the
locations of the new monitoring wells and all piezometers in an email on May 26, 2011, in which DUSA
sought DEQ approval or further input on the locations.
d) steps Taken to Prevent Reoccurrence of the Noncompliance
Denver corporate environmental personnel review all permit revisions, notices, requests for additional
information letter responses, and other written commitments upon receipt or submittal, in order to
electronically diarize specific dates for required actions or reporting. To date, actions with unspecified
dates, such as drilling or construction, have not been consistently added to the electronic notification
system. This process has now been modified such that upon receipt or submittal, corporate personnel
will also consistently diarize interim dates by which drilling or construction schedule windows need to be
established so that notification can be submitted timely to DEQ.
DUSA also recommends that the Permit be modified, in Parts which state a requirement for a 14-day
written notice, to state a requirement for "a written notice 14 days in advance or such lesser time as the
Executive Secretary may approve in advance."
2. Part I.H.6(g) of the Permit, DUSA failed to provide at least a 14 calendar written notice to allow
the Executive Secretary to observe all drilling and well installation activities for the Southwest
Investigation.
a) Root Cause of the Noncompliance
Please see item 1 a, above. The same circumstances apply to this violation as to the violation discussed
above.
b) steps That Have Been Taken to Correct the Violation
The following steps have been taken to correct the violation:
Please see item 1 b, above.
c) Date When Compliance Was or Will be Regained
Please see item 1 c, above.
d) steps Taken to Prevent Reoccurrence of the Noncompliance
Please see item 1 d, above.
DENISOi
MINES
If you have any questions or require any further information, please contact the undersigned.
Yours very truly,
DENISON MINES (USA) CORP.
Jo Ann Tischler
Director, Compliance and Permitting
cc: David C. Frydenlund
Ron F. Hochstein
Loren Morton
Harold R. Roberts
David E. Turk
Katherine Weinel
DENISO
MINES