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HomeMy WebLinkAboutDRC-2008-002463 - 0901a06880a3d6bdroN la.lrsMAN.rR. Goventor GARY HERBERT Lieutctnnt Goventor Department of Environmental Quality Richard W. Sprott Executive Director DIVISION OF RADIATION CONTROL Dane L. Finerfrock Direoor May 2,2008 David C. Frydenlund Vice President and General Counsel 1050 Seventeenth Street, Suite 950 Denver, CO 80265 October 12,2007 Draft Contingency Plan for Denison Required Under Parr I.H.16 of State of Urah GWDP Approval Mines Corporation (DMC), as #UGW370004: Conditional Dear Mr. Frydenlund, We have received and reviewed the October 12,2OO7 Draft Contingency Plan. We approve the Contingency Plan with the following conditions: 1. Submit a final version of the contingency plan for DRC records.2- Submit a draft update for the Contingency Plan for approval prior to placing Cell 44 into operation. If you have any questions, please contact John cook at (801) 536-4253. UTAH RADIATION CONTROL BOARD DF/JPC: jc F:\FACILITIES\DENISON - WHITE MESA\Contingency Plan\2007-10-10 Contingency Plan\2008-05-02 Contingency plan cond app - final.doc 168 Norrh 1950 Wesr. PO Box 144850. Salr take City, UT 841 l4-4850. phone (801) 536_4250. fax (80t) 533_4097 T.D.D. (80I ) 536-4414. u,llw.deq.utah.gov , Executive Secretary State of Utah Department of Environmental Quality Richard W. Sprott Executive Directrn' DIVISION OF RADIATION CONTROL Dane L. Finerfrock Director TO: FROM: DATE: roN M. ,-ll.*o*, r*. Goventor GARY HERBERT Lieutenant Governor Loren Morton MEMORANDUM Johnathan P. Cook, P.E i/rfr-/A February 29,2008 Evaluation of the October 12,2007 Draft Contingency Plan for Denison Mines, as Required Under Part I.H.16 of State of Utah GWDP #UGW370004 I have reviewed the October lO, 2007 Draft Contingency Plan submitted for DRC review by Denison Mines. They have adequately addressed most of the concerns expressed in my September 5,2007 letter. There are still two areas that you should be aware of. l. Section 3.3.d) (groundwater contamination) I requested a detailed list of actions. Denison Mines responded: " Section j.4 of the Plan addresses the types of actions that will be taken (i.e. the submittal of a Groundwater Remediation Plan). Section 3.4 describes, the types of actions that will be taken, in general teftns. As the type of remediation will depend on the specific circumstances, it is not possible to be any more specific than as already set out in Section 3.4. In order to better tie Section 3.3 into Section 3.4, we have added the following sentence to the end of Section 3.3(d): If groundwater remediation is required, Denison will prepare and submit to the Executive Secretary a Ground Water Remediation Plan, as described in Section 3.4 below." I was hoping for more specificity than this, but it is adequate 168 North 1950 West. PO Box 144850. Salt Lake City, UT 841 l4-4850. phone (801) 536-4250. fax (801) 533-4097 T.D.D. (801 ) 536-441 4 . www.derl.utalt gov Page2 2. I requested that since the Cell 4A retrofit has been approved, both DMT and BAT standards apply to the Mill site. Please revise accordingly. Denison Mines responded: "The Mill's DMT Plan is currently in the process of being revised to include Cell4A. It is therefore premature at this time to revise the Contingency Plan to incorporate DMT for Cell 4A. Once the revised DMT Plan has been approved by the Executive Secretary, Denison will revise the Contingency Plan accordingly and will submit the revised Contingency Plan to the Executive Secretary for approval" This is acceptable. I propose we write the approval of the Contingency Plan as "Conditional". It should be conditioned on the need to have the Contingency Plan revised prior to operating Cell 4,A'. F:\FACILITIES\DENISON - WHITE MESA\Contingency Plang007-10-10 Contingency PIan\2008-02-29 Memo Contigency Plan review.doc itu) 9-,:!!roN M. nt*o^. r*, Govenutr GARY HERI]ERT Li(ukilanl Gorcnntr State of Utah Department of Environmental Quality Richard W. Sprott Exccutive Direcurr DIVISION OF RADIATION CONTROL Dane L. Fincrfrock Dirccun' September 5,2007 David C. Frydenlund Vice President and General Counsel I050 Seventeenth Strcet, Suite 950 Denver, CO 80265 Subject: April 7, 2006 Draft Contingency Plan for Denison Mines Corporation (DMC), as Required Under Pan I.H..l6 of State of Utah GWDP #UGW37OOO4: Request for Revision and Resubmital. Dear Mr. Frydenlund, We have received and reviewed the April 7, 2006 Draft Contingency Plan submirted by then Intemational Uranium (USA) Corporation (IUSA). We have several concerns that we would like to lrave addressed. Please revise the plan to resolve the issues in the Attached Table l. The DRC also had the following general commenls that need to be resolved: l. The ownership of the rnill has changed since the April 7,2006. Please revise Lhe contingency plan accordingl y. 2. Now that the Cell 4,{ retrofit has been approved, both DMT and BAT standards apply to the mill sitc. Please revise the contingency plan accordingly. Sincerely, tr?/tai'-7U'/- Johnathan P. Cook, P.E. Divisron of Radiation Control Enclosure l(rl(Norrhl950Wcsl .l)Olloxl44n50.S;rlt Lakc('irr,.tl'Iti4 ll4-4li50.phonc(ll()l)-536-4250.|ax(tt()t)5:il-409? T-.l).l). (80I ) 53()-44|4 . trln.drt1.utttlt.gn 1,. o E U a o o CNItso t, 0) 0) o ot- t,-l: orrlv aI bo.; l.= ElA P IE.9lLhZl'o clu '-lo!UO-(JU.; (D -Lh L tJ"a t) +! EooFE5c)o-o{J >re- 6sr0)Eq;tL)t<t() Iaa I.-Lt-c(gI-al3.3 Io-E IE o^. I) Z-- | E EE I t_lcsl>loIt-lo-la-ld Ita0Itr CE.o-''o tE l)L.oE CtIA€:,Eo"l- O- =bo nDu00.E hn!E 0()= a.):-oo^ d UE IElol3l9 .lc! 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Slg,s B 5lA ^ { Hlu !t Ss.sl LHl s i:l s $i !EEIsEs E isl ! s Ei;il ss!i Efl,i =.E s s tlEi"t s*$siu= stgSErt Psi$E[! r* obnC!o. o\ (,)b0 o- o\()b0 o- C)oo(! O. Iq) U) c.; Cr/ qn$ n V-r rr,oqlr) (.) oo q) G'F ,o* nr. eb*o*, r* GARY HERBERT Lieutenant Covernor State of Utah Department of Environmental Quality Richard W. Sprott Executive Diredor DTVISION OF RADIATION CONTROL Dane L. Finerfrock Direclor TO: FROM: DATE: MEMORANDUM Loren Morton Johnathan P. Cook, P.E fn&@ August L4,2007 SLIBJECT: Evaluation of the April 7, 2006 Draft Contingency Plan for Denison Mines, Required Under Part I.H.16 of State of Utah GWDP #UGW370004 I have reviewed the April 7 ,2006 Draft Contingency Plan submitted for DRC review by Denison Mines, then International Uranium Corporation (IUSA). I have combined comments made by both myself and David Rupp, see the attached table. It seems for the most part, they have simply repeated the requirements of the Groundwater Permit and have decided to leave the details until they have an incident. Section 3, "Groundwater Contaimination" states this clearly with the following statement: "Since there are matry dffirent possible scenarios that could potentially give rise to groundwater contamination, and since the development and implementation of a remediation program will normally be specific to each particular scenario, this Plan does not outline a definitive remediation program. Rather, this Plan describes the steps that will be followed by IUSA in the event IUSA is found to be out of compliance with respect to any constituent in any monitoring well, pursuant to Part 1.G.2 of the GWDP." If, at this time, we need a list of specific actions which they will take, they will have to make major revisions to the Contingency Plan. 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E] o Q o *L5q)ocdC>(a eFoe5E:a e 9 io -EO-E ;p(, O.Q a (.)X ccleHE gEu, aU)(I)=-od: trEcIo,lkE.d v (l)'i >rF6bCI" O.Acq o 6.€tr)tz tro E€) (I)& o OJc! at cg F1 q) aa oLE{ ao |<ra o(n o (.) b0(€ 0.r coob0C!p< U)0) IJa (n o .o cdpr otrobI) oU c0kn\o ON t-- $ () q- o P tr] t soJ)l INES Re: October 12,2OO7 Draft Contingency Plan for Denison Mines (USA) Corporation, as Required Under Part 1.H.16 of State of Utah GWDP No. UGW370004: Conditional Approval As requested, please find enclosed a draft revised Contingency Plan for your review. The draft includes revisions to incorporate the recent changes to the White Mesa Mill's Groundwater Discharge Permit relating to Cell 4A, as well as some minor clean-up changes resulting from other changes to the Permit. lf you have any questions or require any further information, please contact the undersigned. Yours very truly, DeursoH ,t, DENI August 8, 2008 VIA PDF AND FEDEX Mr. Dane L. Finerfrock Executive Secretary Utah Radiation Control Board State of Utah Department of Environmental Quality 168 North 1950 West Salt Lake City, UT 84114-4850 Dear Mr. Finerfrock: Oenison Mines (USA) Corp, 1050 17th Street, Suite 950 Denver, CO 80265 USA Tel i 303 62&7798 Fax : 303 38$4125 www.denisonmines.com frz 1;;'1'{ i,ir rl tiil; fili,.-r,. ,,,. .I r,nir-.1,ultittit (USA) Conp. De0id c. F Vice President, Regulatory Affairs and Counsel Ron F. Hochstein Harold R. Roberts Steven D. Landau David E. Turk White Mesa Mill - Stand? Oneratins Procedures DU/08 Revision:DUSA-I Book # l9-Groundwater Discharge Permit Plans and Procedures Paee 1 of 13 WHITE MESA URANIUM MILL CONTINGENCY PLAN As Required Under Part I.H.165 of State of Utah Groundwater Discharge Permit No.UGW37OOO4 Prepared by: Denison Mines (USA) Corp. 1050 17th Street, Suite 950 Denver CO 80265 @,200+g Book# 19-Groundwater Discharge Permit Plans and Paee 2 !lL!3 Page No. aJ1. TABLE OF CONTENTS INTRODUCTION PURPOSE GROUNDWATER CONTAMINATION Notification Continuation of Accelerated Monitoring Submission of Plan and Timetable Groundwater Remediation Plan 4. IVIILLDISCHARGEVIOLATIONS.INCLUDING UNAUTHORIZED DISCHARGE OR RELEASE OF PROHIBITED CONTAMINANTS TO THE TAILING CELLS4.1. Notifications 4.2. Field Activities4.3. Request for Approvals and/or Waivers 5. DMT VIOLATIONS 5.1. Tailings Cell Wastewater Pool Elevation Above the Maximum Elevations 5.2. Excess Head in Tailings Cells 2 and 3 Slimes Drain Systems5.3. Excess Cell4A Leak Detection Fluid Head or Dailv Leak Rate 5*5.4. Excess Elevation For Tailings Solids $45.5. Roberts Pond Wastewater Elevation 555.6. Feedstock Storage Area #5.7. Mill Site Chemical Reagent Storage 5#5.8. Failure to Construct as per Approval $.&5.9. Failure to Comply with Stormwater Management and Spill Control Requirements J 4 4 4 5 6 6 6 7 7 8 2 98l!9 10e ue rz+ 1Z+ White MesaMill- StandU Oneratins Procedures DU/08 Revision: DUSA-I Book# 19-Groundwater Discharge Permit Plans and Procedures Page 3 of 13 WHITE MESA URANIUM IVIIL CONTINGENCY PLAN State of Utah Groundwater Discharge Permit No. UGW370004 1. INTRODUCTION The State of Utah has granted Ground Water Discharge Permit No. UGW370004 (the "GWDP") for Denison Mines (USA) Corp.'s ("Denison's") White Mesa Uranium Mill (the "Mill"). The GWDP specifies the construction, operation, and monitoring requirements for all facilities at the Mill that have a potential to discharge pollutants directly or indirectly into groundwater. )PURPOSE This Contingency Plan (the "Plan") provides a detailed list of actions Denison will take to regain compliance with GWDP limits and Discharge Minimization Technology ("DMT") requirements defined in Parts I.C and I.D of the GWDP. The timely execution of contingency and corrective actions outlined in this Plan will provide Denison with the basis to exercise the Affirmative Action Defense provision in Part I.G.3.c) of the GWDP and thereby avoid noncompliance status and potential enforcement actionl. The contingency actions required to regain compliance with GWDP limits and DMT requirements deflned in Parts I.C and I.D of the GWDP are described below. 3. GROUNDWATER CONTAMINATION Since there are many different possible scenarios that could potentially give rise to groundwater contamination, and since the development and implementation of a remediation program will normally be specific to each particular scenario, this Plan does not outline a definitive remediation program. Rather, this Plan describes the steps that will be followed by Denison in the event Denison is found to be out of compliance with respect to any constituent in any monitoring well, pursuant to Part I.G.2 of the GWDP. When the concentration of any parameter in a compliance monitoring well is out of compliance, Denison will, subject to specific requirements of the Executive Secretary as I Part I.G.3.c) of the GWDP provides that, in the event a compliance action is initiated against Denison for violation of permit conditions relating to best available technology or DMT, Denison may affirmatively defend against that action by demonstrating that it has made appropriate notifications, that the failure was not intentional or caused by Denison's negligence, that Denison has taken adequate measures to meet permit conditions in a timely manner or has submitted an adequate plan and schedule for meeting permit conditions, and that the provisions ofUCA l9-5-107 have not been violated. a White Mesa Mill- Standil Oneratins Procedures DU/08 Revision: DUSA-l Book# I9-Groundwater Discharge Permit Plans and Procedures Pase 4 or[3 set forth in any notice, order, remediation plan or the equivalent, implement the following process: 3.1. Notification Denison will notify the Executive Secretary of the out of compiiance status within 24 hours after detection of that status followed by a written notice within 5 days after detection, as required under Part I.G.4.a) of the GWDP. 3.2. Continuation of Accelerated Monitoring Denison will continue accelerated sampling for the parameter in that compliance monitoring well pursuant to Part I.G.1 of the GWDP, unless the Executive Secretary determines that other periodic sampling is appropriate, until the facility is brought into compliance, as required under Part I.G.4.b) of the GWDP. If the accelerated monitoring demonstrates that the Mill is no longer out of compliance with respect to a parameter in a well, then, with the written approval of the Executive Secretary, Denison will cease accelerated monitoring for the parameter, and no further steps will be followed by Denison with respect to such parameter. 3.3. Submission of Plan and Timetable If the accelerated monitoring confirms that the Mill is out of compliance with respect to a parameter in a well, then, within 30 days of such confirmation, Denison will prepare and submit to the Executive Secretary a plan and a time schedule for assessment of the sources, extent and potential dispersion of the contamination, and an evaluation of potential remedial action to restore and maintain ground water quality to ensure that permit limits will not be exceeded at the compliance monitoring point and that DMT will be reestablished, as required under part LG.4.c) of the GWDP. This plan will normally include: The requirement for Denison to prepare a detailed and comprehensive operational history of the facility and surrounding areas which explores all activities that may have contributed to the contamination; A requirement for Denison to complete an evaluation, which may include geochemical and hydrogeological analyses, to determine whether or not the contamination was caused by Mill activities or was caused by natural forces or offsite activities; If it is concluded that the contamination is the result of current or past activities at the Mill, Denison will prepare a Characterization Report, which characterizes the physical, chemical, and radiological extent of the ground water a) b) c) n White Mesa Mill - Stand? Ooeratins Procedures DU/08 Revision: DUSA-I Book# 19-Groundwater Discharee Permit Plans and Page 5 o:[ 13 contamination. This will normally include a description of any additional wells to be used or installed to characterize the plume and the hydrogeologic characteristics of the affected zone, the analytical parameters to be obtained, the samples of ground water to be taken, and any other means to measure and characterize the affected ground water and contamination zone; and d) If it is concluded that the contamination is the result of current or past activities at the Mill, Denison will evaluate potential remedial actions, including actions to restore and maintain groundwater quality to ensure that permit limits will not be exceeded at the compliance monitoring point and that DMT will be reestablished, as well as actions that merely allow natural attenuation to operate and actions that involve applying for Alternate Concentration Limits ("ACLs"). If groundwater remediation is required, Denison will prepare and submit to the Executive Secretary a Ground Water Remediation Plan, as described in Section 3.4 below. 3.4. Groundwater Remediation Plan If the Executive Secretary determines that ground water remediation is needed, Denison will submit a Ground Water Remediation Plan to the Executive Secretary within the time frame requested by the Executive Secretary. The Ground Water Remediation Plan will normally include: a) A description and schedule of how Denison will implement a corrective action program that prevents contaminants from exceeding the ground water protection levels or ACLs at the compliance monitoring point(s) or other locations approved by the Executive Secretary, by removing the contaminants, treating them in place, or by other means as approved by the Executive Secretary; b) A description of the remediation monitoring program to demonstrate the effectiveness ofthe plan; and c) Descriptions of how corrective action will apply to each source of the pollution. Denison will implement the Ground Water Remediation Plan in accordance with a schedule to be submitted by Denison and approved by the Executive Secretary. 4. MILL DISCHARGE VIOLATIONS - INCLUDING UNAUTHORIZED DISCHARGE OR RELEASE OF PROHIBITED CONTAMINANTS TO THE TAILING CELLS Part I.C.2. of the GWDP provides that only l1e.(2) by-product material authorized by the Mill's State of Utah Radioactive Materials License No. UT-2300478 (the "Radioactive Materials License") shall be discharged to or disposed of in the Mill's tailings cells. az White Mesa Mill - StandU Operatins Procedures U/08 Revision: DUSA-I Book# l9-Groundwater Discharge Permit Plans and Procedures Page 6 or[_! 3 Part I.C.3 of the GWDP provides that discharge of other compounds into the Mill's tailings cells, such as paints, used oil, antifreeze, pesticides, or any other contaminant not defined as 11e.(2) material is prohibited. In the event of any unauthorized disposal of contaminants or wastes (the "Unauthorized Materials") to the Mill's tailings cells, Denison will, subject to any specific requirements of the Executive Secretary as set forth in any notice, order, remediation plan or the equivalent, implement the following process: 4.1. Notifications a) Upon discovery, the Mill Manager or RSO will be notified immediately; and b) Denison will provide verbal notification to the Executive Secretary within 24 hours of discovery followed by a written notification within five days of discovery. 4.2. Field Activities a) Upon discovery, Mill personnel will immediately cease placement of Unauthorized Materials into the Mill's tailings cells; b) To the extent reasonably practicable and in a manner that can be accomplished safely, Mill personnel will attempt to segregate the Unauthorized Materials from other tailings materials and mark or record the location of the Unauthorized Materials in the tailings cells. If it is not reasonably practicable to safely segregate the Unauthorized Material from other tailings materials, Mill personnel will nevertheless mark or record the location of the Unauthorized Materials in the tailings cells; c) To the extent reasonably practicable and in a manner that can be accomplished safely, Mill personnel will attempt to remove the Unauthorized Material from the tailings cells; and d) Denison will dispose of the Unauthorized Material under applicable State and Federal regulations. 4.3. Request for Approvals and/or Waivers If it is not reasonably practicable to safely remove the Unauthorized Materials from the tailings cells, then Denison will: a Book# l9-Groundwater Discharee Permit Plans and Page 7 oL13 Submit a written report to the Executive Secretary analyzing the health, safety and environmental impacts, if any, associated with the permanent disposal of the Unauthorized Material in the Mill's tailings cells; Apply to the Executive Secretary for any amendments that may be required to the GWDP and the Radioactive Materials License to properly accommodate the permanent disposal of the Unauthorized Material in the Mill's tailings cells in a manner that is protective of health, safety and the environment; and Make all applications required under the United States Nuclear Regulatory Commission's ("NRC's") Non- 1 le.(2) Disposal Policy, including obtaining approval of the Department of Energy as the long term custodian of the Mill's tailings, in order to obtain approval to permanently dispose of the Unauthorized Material in the Mill's tailings cells. DMT VIOLATIONS 5.1. Tailings Cell Wastewater Pool Elevation Above the Maximum Elevations Partl.D.Z and Part I.D.6.d) of the GWDP provides that authorized operation and maximum disposal capacity in each of the existing tailings cells shall not exceed the levels authorized by the Radioactive Materials License and that under no circumstances shall the freeboard be less than three feet, as measured from the top of the flexible membrane liner ("FML"). ln the event that tailings cell wastewater pool elevation in any tailings cell exceeds the maximum elevations mandated by Part I.D.2 and Part I.D.6.d) of the GWDP, Denison will, subject to any specific requirements of the Executive Secretary as set forth in any notice, order, remediation plan or the equivalent, implement the following process: a) Upon discovery, the Mill Manager or RSO will be notified immediately; b) Denison will provide verbal notification to the F,xecutive Secretary within24 hours of discovery followed by a written notification within five days of discovery; c) Upon discovery, Mill personnel will cease to discharge any further tailings to the subject tailings cell, until such time as adequate freeboard capacity exists in the subject tailings cell for the disposal of the tailings; d) To the extent reasonably practicable, without causing a violation of the freeboard limit in any other tailings cell, Mill personnel will promptly pump fluids from the subject tailings cell to another tailings cell until such time as the freeboard limit for the subject tailings cell is in compliance. If there is no room available in a) b) c) 5. z Book#19-Groundwater Discharee Permit Plans and Page 8 p:[_13 e) another tailings cell, without violating the freeboard limit of such other cell, then, as soon as reasonably practicable, Mill personnel will cease to discharge any further tailings to any tailings cell until such time as adequate freeboard capacity exists in all tailings cells; If it is not reasonably practicable to pump sufficient solutions from the subject tailings cell to another tailings cell, then the solution levels in the subject tailings cell will be reduced through natural evaporation; and Denison will perform a root cause analysis of the exceedance and will implement new procedures or change existing procedures to minimize the chance of a recurrence. Excess Head in Tailings Cells 2. 3 and 34A Slimes Drain Svstems5.2. Part I.D.3.b)1) of the GWDP provides that Denison shall at all times maintain the average wastewater head in the slimes drain access pipe in Cell 2 tobe as low as reasonably achievable, in accordance with a DMT Monitoring Plan approved by the Executive Secretary pursuant to Part I.H.13 of the GWDP, and that for Cell 3, this requirement shall apply only after initiation of de-watering operations. Similarly. Part I.D.6.c) of the GWDP provides that after Denison initiates pumping conditions in the slimes drain layer in Cell4A,. Denison will provide continuous declining fluid heads in the slimes drain layer. in a manner equivalent to the requirements found in Part I.D.3.b). ln the event that the average wastewater head in the slimes drain access pipe for Cell 2 or, after initiation of de-watering activities, Cell 3 or initiation of pumping conditions in the slimes drain layer in Cell44, exceeds the levels specified in the DMT Monitoring Plan, Denison will, subject to any specific requirements of the Executive Secretary as set forth in any notice, order, remediation plan or the equivalent, implement the following process: a) Upon discovery, the Mill Manager or RSO will be notified immediately; b) Mill personnel will promptly pump the excess fluid into an active tailings cell, or other appropriate containment or evaporation facility approved by the Executive Secretary; c) If the exceedance is the result of equipment failure, Mill personnel will attempt to repair or replace the equipment; d) If the cause of the exceedance is not rectified within 24 hours, Denison will provide verbal notification to the Executive Secretary within the ensuing 24 hours followed by a written notification within five days; and a e) If not due to an identified equipment failure, Denison will perform a root cause analysis of the exceedance and will implement new procedures or change existing procedures to minimize the chance of a recurrence. 5.3. Excess Cell4,A Leak Detection Svstem Fluid Head or Daily Leak Rate Part I.D.6.a) pfovides that the fluid head in the Leak Detection System ("LDS") for Cell 4A. shall not exceed 1 foot above the lowest point in the lower membrane liner. and Part I.D.6.b) of the GWDP provides that the maximum allowable daily leak rate measured in the LDS for Cell4A shall not exceed 24.160 gallons/day. In the event that the fluid head in the LDS for Cell 4A exceeds 1 foot above the lowest point in the lower membrane layer or the daily leak rate measured in the Cell 4A LDS exceeds 24.160 gallons/day. Denison will. subject to any specific requirements of the Executive Secretar.v as set forth in any notice. order. remediation plan or the equivalent. implement the following process: a) Upon discovery. the Mill Manager or RSO will be notified immediately: b) Mill personnel will promptly pump the excess fluid into an active tailings cell. or other appropriate containment or evaporation facility approved by the Executive Secretarv. until such time as the cause of exceedance is rectified or until such time as otherwise directed by the Executive Secretary: c) If the exceedance is the result of equipment failure. Mill personnel will attempt to repair or replace the equipment: d) If the cause of the exceedance is not rectified within 24 hours. Denison will provide verbal notification to the Executive Secretary within the ensuing 24 hours followed by a written notification within five days: and e) If not due to an identified equipment failure. Denison will perform a root cause analysis of the exceedance and will implement ngw procedures or change existing procedures to remediate the exceedance and to minimize the chance of a recurrence. t&5.4. Excess Elevation For Tailings Solids Part I.D.3.+g)2) of the GWDP provides that upon closure of any tailings cell, Denison shall ensure that the maximum elevation of the tailings waste solids does not exceed the top of the FML. In the event that, upon closure of any tailings cell, the maximum elevation of the tailings waste solids exceeds the top of the FML, Denison will, subject to any specific a Book# l9-Groundwater Discharee Permit Plans and Paee l0 o[_13 requirements of the Executive Secretary as set forth in any notice, order, remediation plan or the equivalent, implement the following process: a) Upon discovery, the Mill Manager or RSO will be notified immediately; b) Denison will provide verbal notification to the Executive Secretary within 24 hours of discovery followed by a written notification within five days of discovery; c) To the extent reasonably practicable, without causing a violation of the freeboard limit in any other tailings cell, Mill personnel will promptly remove tailings solids from the subject tailings cell to another tailings cell, or other location . approved by the Executive Secretary, until such time as the maximum elevation of the tailings waste solids in the subject tailings cell does not exceed the top of the FML; and d) Denison will perform a root cause analysis of the exceedance and will implement new procedures or change existing procedures to minimize the chance of a recurrence. 545.5. Roberts Pond Wastewater Elevation Part I.D.3,+g) of the GWDP provides that the Permittee shall operate Roberts Pond so as to provide a minimum 2-foot freeboard at all times and that under no circumstances shall the water level in Roberts Pond exceed an elevation of 5,624 feet above mean sea level. In the event that the wastewater elevation exceeds this maximum level, Denison shall remove the excess wastewater and place it into containment in Tailings Cell I withinT2 hours of discovery, as specified in Part I.D.3.-e9) of the GWDP. In the event that, Denison fails to so remove any such excess wastewater, Denison will, subject to any specific requirements of the Executive Secretary as set forth in any notice, order, remediation plan or the equivalent, implement the following process: a) Upon discovery, the Mill Manager or RSO will be notified immediately; and b) Denison will provide verbal notification to the Executive Secretary within 24 hours of discovery followed by a written notification and proposed corective actions within five days of discovery. 555.6. Feedstock Storage Area Part I.D.3.Jfl and Part I.D.1 1 of the GWDP provides that open-air or bulk storage of all feedstock materials at the Mill facility awaiting Mill processing shall be limited to the a Book# l9-Groundwater Discharee Permit Plans and Pagellof13 eastern portion of the Mill site area described in Table 4 of the GWDP, and that storage of feedstock materials at the facility outside that area shall be performed and-mdnained if,€rsin accordance with an approved Feedstock Management Plan oursuant to Part I.H.21 of the GWDP. In the event that, storage of any feedstock at the Mill is not in compliance with the requirements specified in Part I.D.3.J0 and Part I.D.11 of the GWDP, Denison will, subject to any specific requirements of the Executive Secretary as set forth in any notice, order, remediation plan or the equivalent, implement the following process: a) Upon discovery, the Mill Manager or RSO will be notified immediately; b) Denison will provide verbal notification to the Executive Secretary within24 hours of discovery followed by a written notification within five days of discovery; c) Mill personnel will: (i) move any open-air or bulk stored feedstock materials to the portion of the Mill site area described in Table 4 of the GWDP;(ii) ensure that any feedstock materials that are stored outside of the area described in Table 4 of the GWDP are stored and maintained in €lo@ water tight eentainer"^ccordance with the approved Feedstock Management Plan; and(iii) to the extent that any such containers are observed to be leaking, such leaking containers will be placed into watertight over-pack containers pg otherwise dealt with in accordance with the approved Feedstock Management Plan, and any impacted soils will be removed and will be deposited into the Mill's active tailings cell; and d) Denison will perform a root cause analysis of the non-compliant activity and will implement new procedures or change existing procedures to minimize the chance of a recurrence. 5.65.7. Mill Site Chemical Reagent Storage Part I.D.3.-eg) of the GWDP provides that for all chemical reagents stored at existing storage facilities, Denison shall provide secondary containment to capture and contain all volumes of reagent(s) that might be released at any individual storage area, and that for any new construction of reagent storage facilities, the secondary containment and control shall prevent any contact of the spilled reagent with the ground surface. In the event that Denison does not provide the required secondary containment required under.Part I.dD.3=-eg) of the GWDP, Denison will, subject to any specific requirements a of the Executive Secretary as set forth in any notice, order, remediation plan or the equivalent, implement the following processl a) Upon discovery, the Mill Manager or RSO will be notified immediately; b) Denison will provide verbal notification to the Executive Secretary within 24 hours of discovery followed by a written notification within five days of discovery; and c) Denison will promptly remediate any spilled re-agent resulting from the failure to provide the required secondary containment under Part I.dD.3.eg) of the GWDP, by removal of the contaminated soil and disposai in the active tailings cell. 5*5.8. Failure to Construct as per Approval Part I.D.4 of the GWDP provides that any construction, modification, or operation of new waste or wastewater disposal, treatment, or storage facilities shall require submittal of engineering design plans and specifications, and prior Executive Secretary review and approval, and that a Construction Permit may be issued. In the event that, any new waste or wastewater disposal, treatment, or storage facilities are constructed at the Mill facility without obtaining prior Executive Secretary review and approval, or any such facilities are not constructed in accordance with the provisions of any applicable Construction Permit, Denison will, subject to any specific requirements of the Executive Secretary as set forth in any notice, order, remediation plan or the equivalent, implement the following process: a) Upon discovery, the Mill Manager or RSO will be notified immediately; and b) Denison will provide verbal notification to the Executive Secretary within 24 hours of discovery followed by a written notification and proposed corrective actions within five days of discovery. $&5.9. Failure to Comply with Stormwater Management and Spill Controt Requirements Part I.D.8]Q of the GWDP provides that Denison will manage all contact and non-contact stormwater and control contaminant spills at the Mill facility in accordance with an approved Stormwater Best Management Practices Plan, pursuant to Part I.H.176 of the GWDP. In the event that any contact or non-contact stormwater or contaminant spills are not managed in accordance with the Mill's approved Stormwater Best Management Practices Plan, Denison will, subject to any specific requirements of the Executive Secretary as set a forth in any notice, order, remediation plan or the equivalent, implement the following process: a) Upon discovery, the Mill Manager or RSO will be notified immediately; Denison will provide verbal notification to the Executive Secretary within 24 hours of discovery followed by a written notification and proposed corrective actions within five days of discoveryi and To the extent still practicable at the time of discovery, Denison will manage any such contaminant spill in accordance with the Mill's approved Stormwater Best Management Practices Plan. To the extent it is no longer practicable to so manage any such spill, Denison will agree with the Executive Secretary on appropriate clean up and other measures. b) c) z DEN''OdI MINES August 7, zOOa VIA FEDEX Mr. Dane L. Finerfrock Executive Secretary Utah Radiation Control Board State of Utah Department of Environmental Quality 168 North 1950 West Salt Lake City, UT 84114-4850 Denison Mines (USA) Corp. 1050 17th Street, Suite 950 Denver, CO 80265 USA Tel : 303 62&7798 Fax : 303 3894125 www.denisonmines.com 8". & Heceived AUG :ill0ll Division of Radiaiion Control .' ir: :- Dear Mr. Finerfrock: Re: October 12,2007 Draft Contingency Plan for Denison Mines (USA) Corporation, as Required Under Part 1.H.16 of State of Utah GWDP No. UGW370004: Conditional Approval As requested, please find enclosed a final version of the Contingency Plan, dated October 12, 2007, for your records. Yours very truly, Vice President, Regulatory Affairs and Counsel Ron F. Hochstein Harold R. Robefts Steven D. Landau David E. Turk WHITE MESA URANIUM MILL CONTINGENCY PLAN As Required Under Part I.H.16 of State of Utah Groundwater Discharge Permit No.UGW370004 Prepared by: Denison Mines (USA) Corp. 1050 17th Sfieet, Suite 950 Denver CO 80265 October I2,2OO7 Page No. Jl. aJ 4 4 4 5 6 6 6 TABLE OF CONTENTS INTRODUCTION PURPOSE GROUNDWATER CONTAMINATION Notification Continuation of Accelerated Monitoring Submission of Plan and Timetable Groundwater Remediation Plan 4. MILLDISCHARGEVIOLATIONS.INCLUDING UNAUTHORIZED DISCHARGE OR RELEASE OF PROHIBITED CONTAMINANTS TO THE TAILING CELLS4.I. Notifications4.2. Field Activities4.3. Request for Approvals and"/or Waivers 5. DMT VIOLATIONS5.1. Tailings Cell Wastewater Pool Elevation Above the Maximum Elevations5.2. Excess Head in Tailings Cells 2 and 3 Slimes Drain Systems5.3. Excess Elevation For Tailings Solids5.4. Roberts Pond Wastewater Elevation5.5. Feedstock Storage Area5.6. Mill Site Chemical Reagent Storage5.7. Failure to Construct as per Approval5.8. Failure to Comply with Stormwater Management and Spill Control Requirements 7 7 8 8 9 9 10 11 11 WHITE MESA URANIUM MILL CONTINGENCY PLAN State of Utah Groundwater Discharge Permit No. UGW370004 I. INTRODUCTION The State of Utah has granted Ground Water Discharge Permit No. UGW370004 (the "GWDP") for Denison Mines (USA) Corp.'s ("Denison's") White Mesa Uranium Mill (the "Mill"). The GWDP specifies the construction, operation, and monitoring requirements for all facilities at the Mill that have a potential to discharge pollutants directly or indirectly into groundwater. )PURPOSE This Contingency Plan (the "Plan") provides a detailed list of actions Denison will take to regain compliance with GWDP limits and Discharge Minimization Technology ("DMT") requirements defined in Parts LC and I.D of the GWDP. The timely execution of contingency and corrective actions outlined in this Plan will provide Denison with the basis to exercise the Affirmative Action Defense provision in Part I.G.3.c) of the GWDP and thereby avoid noncompliance status and potential enforcement actionl. The contingency actions required to regain compliance with GWDP limits and DMT requirements defined in Parts I.C and I.D of the GWDP are described below. 3. GROUNDWATER CONTAIVIINATION Since there are many different possible scenarios that could potentially give rise to groundwater contamination, and since the development and implementation of a remediation program will normally be specific to each particular scenario, this Plan does not outline a definitive remediation program. Rather, this Plan describes the steps that will be followed by Denison in the event Denison is found to be out of compliance with respect to any constituent in any monitoring well, pursuant to Partl.G.2 of the GWDP. When the concentration of any parameter in a compliance monitoring well is out of compliance, Denison will, subject to specific requirements of the Executive Secretary as set forth in any notice, order, remediation plan or the equivalent, implement the following process: I Part I.G.3.c) of the GWDP provides that, in the event a compliance action is initiated against Denison for violation of permit conditions relating to best available technology or DMT, Denison may affirmatively defend against that action by demonstrating that it has made appropriate notifications, that the failure was not intentional or caused by Denison's negligence, that Denison has taken adequate measures to meet permit conditions in a timely manner or has submitted an adequate plan and schedule for meeting permit conditions, and that the provisions of UCA I 9-5- 107 have not been violated. Notification Denison will notify the Executive Secretary of the out of compliance status within 24 hours after detection of that status followed by a written notice within 5 days after detection, as required under Part I.G.4.a) of the GWDP. 3.2. Continuation of Accelerated Monitoring Denison will continue accelerated sampling for the parameter in that compliance monitoring well pursuant to Part I.G.1 of the GWDP, unless the Executive Secretary determines that other periodic sampling is appropriate, until the facility is brought into compliance, as required under Pan I.G.4.b) of the GWDP. If the accelerated monitoring demonstrates that the Mill is no longer out of compliance with respect to a parameter in a well, then, with the written approval of the Executive Secretary, Denison will cease accelerated monitoring for the parameter, and no further steps will be followed by Denison with respect to such parameter. 3.3. Submission of Plan and Timetable If the accelerated monitoring confirms that the Mill is out of compliance with respect to a parameter in a well, then, within 30 days of such confirmation, Denison will prepare and submit to the Executive Secretary a plan and a time schedule for assessment of the sources, extent and potential dispersion of the contamination, and an evaluation of potential remedial action to restore and maintain ground water quality to ensure that permit limits will not be exceeded at the compliance monitoring point and that DMT will be reestablished, as required under part I.G.4.c) of the GWDP. This plan will normally include: The requirement for Denison to prepare a detailed and comprehensive operational history of the facility and surrounding areas which explores all activities that may have contributed to the contamination; A requirement for Denison to complete an evaluation, which may include geochemical and hydrogeological analyses, to determine whether or not the contamination was caused by Mill activities or was caused by natural forces or offsite activities; If it is concluded that the contamination is the result of current or past activities at the Mill, Denison will prepare a Characterization Report, which characterizes the physical, chemical, and radiological extent of the ground water contamination. This will normally include a description of any additional wells to be used or installed to characterize the plume and the hydrogeologic characteristics of the affected zone, the analytical parameters to be obtained, the a) b) c) samples of ground water to be taken, and any other means to measure and characterize the affected ground water and contamination zone; and d) If it is concluded that the contamination is the result of current or past activities at the Mill, Denison will evaluate potential remedial actions, including actions to restore and maintain groundwater quality to ensure that permit limits will not be exceeded at the compliance monitoring point and that DMT will be reestablished, as well as actions that merely allow natural attenuation to operate and actions that involve applying for Alternate Concentration Limits ("ACLs"). If groundwater remediation is required, Denison will prepare and submit to the Executive Secretary a Ground Water Remediation Plan, as described in Section 3.4 below. 3.4. Groundwater Remediation Plan If the Executive Secretary determines that ground water remediation is needed, Denison will submit a Ground Water Remediation Plan to the Executive Secretary within the time frame requested by the Executive Secretary. The Ground Water Remediation Plan will normally include: a) A description and schedule of how Denison will implement a corrective action program that prevents contaminants from exceeding the ground water protection levels or ACLs at the compliance monitoring point(s) or other locations approved by the Executive Secretary, by removing the contaminants, treating them in place, or by other means as approved by the Executive Secretary; b) A description of the remediation monitoring program to demonstrate the effectiveness ofthe plan; and c) Descriptions of how corrective action will apply to each source of the pollution. Denison will implement the Ground Water Remediation Plan in accordance with a schedule to be submitted by Denison and approved by the Executive Secretary. 4. NTILL DISCHARGE VIOLATIONS _ INCLUDING UNAUTHORIZED DISCHARGE OR RELEASE OF PROHIBITED CONTAMINANTS TO THE TAILING CELLS PartLC.2. of the GWDP provides that only lle.(Z) by-product material authorized by the Mill's State of Utah Radioactive Materials License No. UT-2300478 (the "Radioactive Materials License") shall be discharged to or disposed of in the Mill's tailings cells. Part I.C.3 of the GWDP provides that discharge of other compounds into the Mill's tailings cells, such as paints, used oil, antifreeze, pesticides, or any other contaminant not defined as 11e.(2) material is prohibited. ln the event of any unauthorized disposal of contaminants or wastes (the "Unauthorized Materials") to the Mill's tailings cells, Denison will, subject to any specific requirements of the Executive Secretary as set forth in any notice, order, remediation plan or the equivalent, implement the following process: Notifications a) Upon discovery, the Mill Manager or RSO will be notified immediately; and b) Denison will provide verbal notification to the Executive Secretary within 24 hours of discovery followed by a written notification within five days of discovery. Field Activities a) Upon discovery, Mill personnel will immediately cease placement of Unauthorized Materials into the Mill's tailings cells; 4.3. To the extent reasonably practicable and in a manner that can be accomplished safely, Mill personnel will attempt to segregate the Unauthorized Materials from other tailings materials and mark or record the location of the Unauthorized Materials in the tailings cells. If it is not reasonably practicable to safely segregate the Unauthorized Material from other tailings materials, Mill personnel will nevertheless mark or record the location of the Unauthorized Materials in the tailings cells; To the extent reasonably practicable and in a manner that can be accomplished safely, Mill personnel will attempt to remove the Unauthorized Material from the tailings cells; and Denison will dispose of the Unauthorized Material under applicable State and Federal regulations. Request for Approvals and/or Waivers If it is not reasonably practicable to safely remove the Unauthorized Materials from the tailings cells, then Denison will: Submit a written report to the Executive Secretary analyzing the health, safety and environmental impacts, if any, associated with the permanent disposal of the Unauthorized Material in the Mill's tailings cells; Apply to the Executive Secretary for any amendments that may be required to the GWDP and the Radioactive Materials License to properly accommodate the permanent disposal of the Unauthorized Material in the Mill's tailings cells in a manner that is protective of health, safety and the environment; and b) c) d) a) b) c) Make all applications required under the United States Nuclear Regulatory Commission' s ("NRC's") Non- 1 le.(2) Disposal Policy, including obtaining approval of the Department of Energy as the long term custodian of the Mill's tailings, in order to obtain approval to permanently dispose of the Unauthorized Material in the Mill's tailings cells. 5. DMT VIOLATIONS 5.1. Tailines Cell Wastewater Pool Elevation Above the Maximum Elevations Part I.D.2 of the GWDP provides that authorized operation and maximum disposal capacity in each of the existing tailings cells shall not exceed the levels authorized by the Radioactive Materials License and that under no circumstances shall the freeboard be less than three feet, as measured from the top of the flexible membrane liner ("FML"). In the event that tailings cell wastewater pool elevation in any tailings cell exceeds the maximum elevations mandated by Part I.D.2 of the GWDP, Denison will, subject to any specific requirements of the Executive Secretary as set forth in any notice, order, remediation plan or the equivalent, implement the following process: a) Upon discovery, the Mill Manager or RSO will be notified immediately; b) Denison will provide verbal notification to the Executive Secretary within 24 hours of discovery followed by a written notification within five days of discovery; Upon discovery, Mill personnel will cease to discharge any further tailings to the subject tailings cell, until such time as adequate freeboard capacity exists in the subject tailings cell for the disposal of the tailings; To the extent reasonably practicable, without causing a violation of the freeboard limit in any other tailings cell, Mill personnel will promptly pump fluids from the subject tailings cell to another tailings cell until such time as the freeboard limit for the subject tailings cell is in compliance. If there is no room available in another tailings cell, without violating the freeboard limit of such other cell, then, as soon as reasonably practicable, Mill personnel will cease to discharge any further tailings to any tailings cell until such time as adequate freeboard capacity exists in all tailings cells; If it is not reasonably practicable to pump sufficient solutions from the subject tailings cell to another tailings cell, then the solution levels in the subject tailings cell will be reduced through natural evaporation; and c) d) e) 0 Denison will perform a root cause analysis of the exceedance and will implement new procedures or change existing procedures to minimize the chance of a recurrence. 5.2. Excess Head in Tailings Cells 2 and 3 Slimes Drain Systems Part I.D.3.b)1) of the GWDP provides that Denison shall at all times maintain the average wastewater head in the slimes drain access pipe in Cell 2 tobe as low as reasonably achievable, in accordance with a DMT Monitoring Plan approved by the Executive Secretary pursuant to Part I.H.13 of the GWDP, and that for Cell 3, this requirement shall apply only after initiation of de-watering operations. In the event that the average wastewater head in the slimes drain access pipe for Cell 2 or, after initiation of de-watering activities, Cell 3 exceeds the levels specified in the DMT Monitoring Plan, Denison will, subject to any specific requirements of the Executive Secretary as set forth in any notice, order, remediation plan or the equivalent, implement the following process: a) Upon discovery, the Mill Manager or RSO will be notified immediately; b) Mill personnel will promptly pump the excess fluid into an active tailings cell, or other appropriate containment or evaporation facility approved by the Executive Secretary; c) If the exceedance is the result of equipment failure, Mill personnel will attempt to repair or replace the equipment; d) If the cause of the exceedance is not rectified within 24 hours, Denison will provide verbal notification to the Executive Secretary within the ensuing 24 hours followed by a written notification within five days; and e) If not due to an identified equipment failure, Denison will perform a root cause analysis of the exceedance and will implement new procedures or change existing procedures to minimize the chance of a recurrence. 5.3. Excess Elevation For Tailings Solids Part I.D.3 b)2) of the GWDP provides that upon closure of any tailings cell, Denison shall ensure that the maximum elevation of the tailings waste solids does not exceed the top of the FML. In the event that, upon closure of any tailings cell, the maximum elevation of the tailings waste solids exceeds the top of the FML, Denison will, subject to any specific requirements of the Executive Secretary as set forth in any notice, order, remediation plan or the.equivalent, implement the following process: a) Upon discovery, the Manager or RSO will be immediately; b) Denison will provide verbal notification to the Executive Secretary within 24 hours of discovery followed by a written notification within five days of discovery; c) To the extent reasonably practicable, without causing a violation of the freeboard limit in any other tailings cell, Mill personnel will promptly remove tailings solids from the subject tailings cell to another tailings cell, or other location approved by the Executive Secretary, until such time as the maximum elevation of the tailings waste solids in the subject tailings cell does not exceed the top of the FML; and d) Denison will perform a root cause analysis of the exceedance and will implement new procedures or change existing procedures to minimize the chance of a recurrence. 5.4. Roberts Pond Wastewater Elevation Part I.D.3 c) of the GWDP provides that the Permittee shall operate Roberts Pond so as to provide a minimum 2-foot freeboard at all times and that under no circumstances shall the water level in Roberts Pond exceed an elevation of 5,624 feet above mean sea level. In the event that the wastewater elevation exceeds this maximum level, Denison shall remove the excess wastewater and place it into containment in Tailings Cell I withinT2 hours of discovery, as specified in Part I.D.3 c) of the GWDP. In the event that, Denison fails to so remove any such excess wastewater, Denison will, subject to any specific requirements of the Executive Secretary as set forth in any notice, order, remediation plan or the equivalent, implement the following process: a) Upon discovery, the Mill Manager or RSO will be notified immediately; and b) Denison will provide verbal notification to the Executive Secretary within 24 hours of discovery followed by a written notification and proposed corrective actions within five days of discovery. 5.5. Feedstock Storage Area Part LD.3. d) of the GWDP provides that open-air or bulk storage of all feedstock materials at the Mill facility awaiting Mill processing shall be limited to the eastern portion of the Mill site area described in Table 4 of the GWDP, and that storage of feedstock materials at the facility outside that area shall be performed and maintained only in closed, water-tight containers. In the event that, storage of any feedstock at the Mill is not in compliance with the requirements specified in Part I.D.3. d) of the GWDP, Denison will, subject to any specific requirements of the Executive Secretary as set forth in any notice, order, remediation plan or the equivalent, implement the following process: a) Upon discovery, the Mill Manager or RSO will be notified immediately; b) Denison will provide verbal notification to the Executive Secretary within 24 hours of discovery followed by a written notification within five days of discovery; c) Mill personnel will: (i)move any open-air or bulk stored feedstock materials to the portion of the Mill site area described in Table 4 of the GWDP; ensure that any feedstock materials that are stored outside of the area described in Table 4 of the GWDP are stored and maintained in closed, water-tight containers; and to the extent that any such containers are observed to be leaking, such leaking containers will be placed into watertight over-pack containers, and any impacted soils will be removed and will be deposited into the Mill's active tailings cell; and (ii) (iii) d) Denison will perform a root cause analysis of the non-compliant activity and will implement new procedures or change existing procedures to minimize the chance of a recurrence. 5.6. Mill Site Chemical Reagent Storage Part I.D.3. e) of the GWDP provides that for all chemical reagents stored at existing storage facilities, Denison shall provide secondary containment to capture and contain all volumes of reagent(s) that might be released at any individual storage area, and that for any new construction of reagent storage facilities, the secondary containment and control shall prevent any contact of the spilled reagent with the ground surface. In the event that Denison does not provide the required secondary containment required under Part I.d.3. e) of the GWDP, Denison will, subject to any specific requirements of the Executive Secretary as set forth in any notice, order, remediation plan or the equivalent, implement the following process: a) Upon discovery, the Mill Manager or RSO will be notified immediately; b) Denison will provide verbal notification to the Executive Secretary within 24 hours of discovery followed by a written notification within five days of discovery; and 10 c) Denison will promptly remediate any spilled re-agent resulting from the failure to provide the required secondary containment under Part I.d.3.e) of the GWDP, by removal of the contaminated soil and disposal in the active tailings cell. Failure to Construct as per Approval Part I.D.4 of the GWDP provides that any construction, modification, or operation of new waste or wastewater disposal, troatment, or storage facilities shall require submittal of engineering design plans and specifications, and prior Executive Secretary review and approval, and that a Construction Permit may be issued. In the event that, any new waste or wastewater disposal, treatment, or storage facilities are constructed at the Mill facility without obtaining prior Executive Secretary review and approval, or any such facilities are not constructed in accordance with the provisions of any applicable Construction Permit, Denison will, subject to any specific requirements of the Executive Secretary as set forth in any notice, order, remediation plan or the equivalent, implement the following process: a) Upon discovery, the Mill Manager or RSO will be notified immediately; and b) Denison will provide verbal notification to the Executive Secretary within 24 hours of discovery followed by a written notification and proposed corrective actions within five days of discovery. 5.8. Failure to Comply with Stormwater Management and Spill Control Requirements Part I.D.8 of the GWDP provides that Denison will manage all contact and non-contact stormwater and control contaminant spills at the Mill facility in accordance with an approved Stormwater Best Management Practices Plan, pursuant to Part I.H.l1 of the GWDP. In the event that any contact or non-contact stormwater or contaminant spills are not managed in accordance with the Mill's approved Stormwater Best Management Practices Plan, Denison will, subject to any specific requirements of the Executive Secretary as set forth in any notice, order, remediation plan or the equivalent, implement the following process: a) Upon discovery, the Mill Manager or RSO will be notified immediately; Denison will provide verbal notification to the Executive Secretary within 24 hours of discovery followed by a written notification and proposed corrective actions within five days of discovery; and To the extent still practicable at the time of discovery, Denison will manage any such contaminant spill in accordance with the Mill's approved Stormwater Best Management Practices Plan. To the extent it is no longer practicable to so b) c) 11 manage any such spill, Denison will agree with the Executive Secretary on appropriate clean up and other measures. a "J)l Denison Mines (USA) Corp. 1050 lTth Street, Suite 950 Denver, CO 80265 USA Tel :303 628-7798 Fax : 303 389-4125 www.denisonmines.com DENIS MINES October 12,2007 VIA FACSIMILE AND US MAIL Jonathan P. Cook, P.E. Division of Radiation Control Utah Department of Environmental Quality 168 North 1950 West Salt Lake City, UT 84114-4850 Dear Mr. Cook: ..1 4. <fr.. - ". i L*ti1.'i-''- 0C1 20ut **3,,rllli#'-* Re: April 7,2006 Draft Contingency Plan for Denison Mines (USA) Corp. ("Denison") White Mesa Mill, as Required Under Part 1.H.16 of State of Utah GWDP No. UGW370004: Request for Revision and Re- submittal -Your Letter of September 5,2007 Reference is made to your letter of September 5,2007 regarding the draft Contingency Plan for Denison's White Mesa Mill (the "Milf'). ln your letter you set out several concerns relating to the draft Contingency Plan that you ask us to address, and you request that we revise and re-submit the Plan. Enclosed with this letter is a revised draft Contingency Plan for the Mill, marked to indicate changes over the April7,2006 version. We respond to your questions as follows (your questions or comments are repeated below in italics, followed by our response): 1. The ownership of the Mill has changed since April 7, 2006. Please revise the Contingency Plan accordingly. The ownership of the Mill has not changed; however, the name of the operator of the Millwas changed in December 2006 from lnternational Uranium (USA) Corporation to Denison Mines (USA) Corp. This change has been incorporated into the attached revised draft Plan. 2. Now that the Cell44 retrofit has been approved, both DMT and BAT standards apply to the Milt site. Please revise the Contingency Plan accordingly. The Mill's DMT Plan is currently in the process of being revised to include Cell 44. lt is therefore premature at this time to revise the Contingency Plan to incorporate DMT for Cell44. Once the revised DMT Plan has been approved by the Executive Secretary, Denison will revise the Contingency Plan accordingly and will submit the revised Contingency Plan to the Executive Secretary for approval. 3. You note that the Contingency Plan provides, in Section 3.3(d) on page 5, that "lf it is concluded that the contamination is the result of current or past activities at the Mill, IUSA willevaluate potential remedial actions, including actions to restore and maintain groundwater quality to ensure that permit limits will not be exceeded at the compliance monitoring point and that DMT will be reestablished, as well as actions that merely allow natural attenuation to operate and actions that involve applying for Alternate Concentration Limits.('ACLs'). You ask that we provide a detailed list of actions in the Contingency Plan. Section 3.4 of the Plan addresses the types of actions that will be taken (1.e., the submittal of a Groundwater Remediation Plan). Section 3.4 describes, the types of actions that will be taken, in generalterms. As the type of remediation will depend on the specific circumstances, it is not possible to be any more specific than as already set out in Section 3.4. ln order to better tie Section 3.3 into Section 3.4, we have added the following sentence to the end of Section 3.3(d): lf groundwater remediation is required, Denison will prepare and submit to the Executive Secretary a Ground Water Remediation Plan, as described in Section 3.4 below. 4. You note that the Contingency Plan provides, in Section 4 on page 5, that "Part l.C.e of the GWDP provides that discharge of other compounds into the Mill's tailings cells, such as paints, used oil, antifreeze, pesticides, or any other contaminant not defined as 11e.(2) material is prohibited." You ask how this affects the "current practice of disposing of paint chips . . . in the tailings cells?" The Mill may dispose of dried paint chips or flakes on equipment or paint chips that may result from sand blasting or similar activities. These are wastes generated in connection with the milling process and are therefore 1 1e.(2) byproduct material. This differs f rom disposal of pure unused, uncontaminated paint, that is not a waste, into the tailings cells, which may not be 11e.(2) byproduct material and, if not, would not be able to be directly disposed of in the Mill's tailings cells. 5. Section 4.3 (c) on page 6. You have asked us to change the words "including without limitation obtaining approvalof" to "including obtaining approval of" We have made the requested change. 6. With respect to the requirements set out in Sections 5.1 (a) through 5.1(t) of the Plan, you have asked if Milt operations will be halted untilthe wastewater pool elevation has dropped back below the minimum freeboard level. Section 5.1(c) of the Plan provides that upon discovery, Mill personnel will cease to discharge any further tailings to the subject tailings cell, until such time as adequate freeboard capacity exists in the subject tailings cell for the disposal of the tailings. Section 5.1 (d) provides that to the extent reasonably practicable, without causing a violation of the freeboard limit in any other tailings cell, Mill personnel will promptly pump fluids from the subject tailings cell to another tailings cell until such time as the freeboard limit for the subject tailings cell is in compliance. lf there is no room available in another cell, without violating the freeboard limit of such cell, then, as soon as reasonably practicable, Mill personnel will cease to discharge any further tailings to any cell until such time as adequate freeboard capacity exists in all cells. We have added the following language to Section 5.1 (d): lf there is no room available in another cell, without violating the freeboard limit of such other tailings cell, then, as soon as reasonably practicable, Mill personnel will cease to discharge any further tailings to any tailings cell until such time as adequate freeboard capacity exists in all tailings cells. DENISONDII MINES 7. Section 5.4, page 9: Add paragraphs similar to 5.1.d), 5.1.e), and 5.1.f) The Permit already specifically addresses what must be done if the freeboard limit in Roberts Pond is exceeded. Specifically, Part 1.D.3.(c) of the Permit states that in the event that the wastewater elevation exceeds the maximum level, Denison shall remove the excess wastewater and place it into containment in Tailings Cell 1 within 72 hours of discovery. Such a specific provision does not exist to address exceedances of freeboard limits in the Mill's tailings cells. That is whythe procedures in Section 5.1 (d), (e)and (f) are not repeated in Section 5.4. For example, given the specific wording of Part 1.D.3 (c) of the Permit, there is no need to repeat Sections 5.1(d) and (e) of the Contingency Plan in Section 5.4 of the Contingency Plan. Similarly, Part 1.D.3 of the Permit contemplates that the freeboard limit in Roberts Pond may be exceeded temporarily from time to time, and gives a 72-hour window in which to get the solution levels in Roberts Pond down to the maximum elevation before a violation can be issued under the Permit. Therefore, we do not believe that it is necessary to perform a root cause analysis for exceedances of freeboard limits in Roberts Pond, as is required for exceedances of freeboard limits in the tailings cells. Accordingly, we have not added paragraphs similar to 5.1(d), (e) and (f) to Section 5.4. 8. Section 5.5, page 9: What will be done should it be discovered that feedstock containers are leaking? We have added the following as a new Section 5.5 (c)(iii): (iii) to the extent that any such containers are observed to be leaking, such leaking containers will be placed into watertight over-pack containers, and any impacted soils will be removed and will be deposited into the Mill's active tailings cell; and 9. S-ection 5.8, page 11: Provide more details on what will be done upon discovery of a failure to compty with Stormwater Management and Spill Control Requirements, such as method for clean-up We have added the following as a new Section 5.8(c): (c) To the extent still practicable at the time of discovery, Denison will manage any such contaminant spill in accordance with the Mill's approved Stormwater Best Management Practices Plan. To the extent it is no longer practicable to so manage any such spill, Denison will agree with the Executive Secretary on appropriate clean up and other measures. lf you have any questions regarding the foregoing, or require any further information, please contact the undersigned. Yours very truly, SA) Cone. and Counsel Ron F, Hochstein Harold R. Roberts Steven D. Landau David Turk . Frildenlund Vice Presideht, Flegulatory Affairs DENISOJ)IJ lvllNES WHITE MESA URANIUM MILL CONTINGENCY PLAN As Required Under Part I.H.16 of State of Utah Groundwater Discharge Permit No.UGW3700A4 Prepared by: I ruSA) Corp.erarien 1050 17th Sffeet, Suite 950 Denver CO 80265 @^oW I OraftDate: @,\OOq ,, 3. 3.1. 3.2. J.J. 3.4. TABLE OF CONTENTS INTRODUCTION PURPOSE GROLII\DWATER CONTAMINATION Notification Continuation of Accelerated Monitoring Submission of Plan and Timetable Groundwater Remediation Plan Page No. aJ 3 4 4 4 5 7 7 7E 8 9 9 10 101 11 4. MILL DISCHARGE VIOLATIONS - INCLUDING T]NAUTHORIZED DISCHARGE OR RELEASE OF PROHIBITED CONTAMINANTS TO TIIE TAILING CELLS4.I. Notifications 4.2. Field Activities 4.3. Request for Approvals and/or Waivers 5. DMT VIOLATIONS 5.1. Tailings Cell Wastewater Pool Elevation Above the Maximum Elevations 5.2. Excess Head in Tailings Cells 2 and 3 Slimes Drain Systems5.3. Excess Elevation For Tailings Solids 5.4. Roberts Pond Wastewater Elevation 5.5. Feedstock Storage Area 5.6. Mill Site Chemical Reagent Storage5.7. Failure to Construct as per Approval5.8. Failure to Comply with Stormwater Management and Spill Control Requirements 6 6 6 lOraftDate: @,201 WHITE MESA URANIUM MILL CONTINGENCY PLAN State of Utah Groundwater Discharge Permit No. UGW370004 1. INTRODUCTION The State of Utah has granted Ground Water Discharge Permit No. UGW370004 (the "GWDP") for (USA) Corp.eratien's ("trusADenison's") white Mesa Uranium Mill (the "Mill"). The GWDP specifies the construction, operation, and monitoring requirements for all facilities at the Mill that have a potential to discharge pollutants directly or indirectly into groundwater. )PURPOSE This Contingency Plan (the "Plan") provides a detailed list of actions flJ$4Delison will take to regain compliance with GWDP limits and Discharge MinimizationTechnology ("DMT") requirements defined in Parts I.C and I.D of the GWDP. The timely execution of contingency and corrective actions outlined in this Plan will provide usADeniig! with the basis to exercise the Affirmative Action Defense provision in Part I.G.3.c) of the GWDP and thereby avoid noncompliance status and potential enforcement actionl. The contingency actions required to regain compliance with GWDP limits and DMT requirements defined in Parts LC and I.D of the GWDP are described below. 3. GROUNDWATER CONTAMINATION Since there are many different possible scenarios that could potentially give rise to groundwater contamination, and since the development and implementation of a remediation program will normally be specific to each particular scenario, this Plan does not outline a definitive remediation program. Rather, this Plan describes the steps that will be followed by {us+pgnilon in the event rJsADqnlle! is found to be out of compliance with respect to any constituent in any monitoring well, pursuant to Part I.G.2 of the GWDP. When the concentration of any parameter in a compliance monitoring well is out of compliance, IfISADgg[gqn will, subject to specific requirements of the Executive I Part I.G.3.c) of the GWDP provides that, in the event a compliance action is initiated against IJSApgnlig! for violation of permit conditions relating to best available technology or DMT,gJsADeqilg! may affirmatively defend against that action by demonstrating that it has made appropriate notifications, that the failure was not intentional or caused by IUSAD9niso!'s negligence, that IUS+Dglilg! has taken adequate measures to meet permit conditions in a timely manner or has submitted an adequate plan and schedule for meeting permit conditions, and that the provisions of UCA l9-5-107 have not been violated. DraftDate: @,2006{ Secretary as set forth in any notice, order, remediation plan or the equivalent, implement the following process: 3.1. Notification I{JS+Den.L$on will notify the Executive Secretary of the out of compliance status within 24 hours after detection of that status followed by a written notice within 5 days after detection, as required under Part I.G.4.a) of the GWDP. 3.2. Continuation of Accelerated Monitoring {JS,aDenison will continue accelerated sampling for the parameter in that compliance monitoring well pursuant to Part LG.1 of the GWDP, unless the Executive Secretary determines that other periodic sampling is appropriate, until the facility is brought into compliance, as required under Part I.G.4.b) of the GWDP. If the accelerated monitoring demonstrates that the Mill is no longer out of compliance with respect to a parameter in a well, then, with the written approval of the Executive Secretary, +f+SADentgg! will cease accelerated monitoring for the parameter, and no further steps will be followed by RJsADen[gq! with respect to such parameter. 3.3. Submission of Plan and Timetable If the accelerated monitoring confirms that the Mill is out of compliance with respect to a parameter in a well, then, within 30 days of such confirmation, I{JSApeuiqon will prepare and submit to the Executive Secretary a plan and a time schedule for assessment of the sources, extent and potential dispersion of the contamination, and an evaluation of potential remedial action to restore and maintain ground water quality to ensure that permit limits will not be exceeded at the compliance monitoring point and that DMT will be reestablished, as required under part I.G.4.c) of the GWDP. This plan will normally include: The requirement for l+gsADenisg! to prepare a detailed and comprehensive operational history of the facility and surrounding areas which explores all activities that may have contributed to the contamination; A requirement for {Js,aDenisg! to complete an evaluation, which may include geochemical and hydrogeological analyses, to determine whether or not the contamination was caused by Mill activities or was caused by natural forces or offsite activities; If it is concluded that the contamination is the result of current or past activities at the Mill, uSApgn:ilen will prepare a Characterization Report, which characterizes the physical, chemical, and radiological extent of the ground water contamination. This will normally include a description of any additional wells to be used or installed to characterize the plume and the hydrogeologic a) b) c) DraftDate: @,2006{ characteristics of the affected zone, the analytical parameters to be obtained, the samples of ground water to be taken, and any other means to measure and charucterize the affected ground water and contamination zone; and d) If it is concluded that the contamination is the result of current or past activities at the Mill, {USApenlsoq will evaluate potential remedial actions, including actions to restore and maintain groundwater quality to ensure that permit limits will not be exceeded at the compliance monitoring point and that DMT will be reestablished, as well as actions that merely allow natural attenuation to operate and actions that involve applying for Alternate Concentration Limits ("ACLs"). If groundwater remediation is required. Denison will prepare and submit to the Executive Secretarv a Ground Water Remediation Plan. as described in Section 3.4 below. 3.4. Groundwater Remediation Plan If the Executive Secretary determines that ground water remediation is needed, +USADggilg! will submit a Ground Water Remediation Plan to the Executive Secretary within the time frame requested by the Executive Secretary. The Ground Water Remediation Plan will normally include: a) A description and schedule of how {JsADenison will implement a corrective action program that prevents contaminants from exceeding the ground water protection levels or ACLs at the compliance monitoring point(s) or other locations approved by the Executive Secretary, by removing the contarhinants, treating them in place, or by other means as approved by the Executive Secretary; b) A description of the remediation monitoring program to demonstrate the effectiveness of the plan; and c) Descriptions of how corrective action will apply to each source of the pollution. IU$ADeniSg! will implement the Ground Water Remediation Plan in accordance with a schedule to be submitted by tr{+$ADenfSqq and approved by the Executive Secretary. 4. MILL DISCHARGE VIOLATIONS - INCLT]DING UNAUTHORIZED DISCHARGE OR RELEASE OF PROHIBITED CONTAMINANTS TO TIIE TAILING CELLS Part I.C.2. of the GWDP provides that only Lle.(Z) by-product material authorized by the Mill's State of Utah Radioactive Materials License No. UT-2300478 (the "Radioactive Materials License") shall be discharged to or disposed of in the Mill's tailings cells. DraftDate: @,20CF/ Part I.C.3 of the GWDP provides that discharge of other compounds into the Mill's tailings cells, such as paints, used oil, antifreeze, pesticides, or any other contaminant not defined as 11e.(2) material is prohibited. In the event of any unauthorized disposal of contaminants or wastes (the "Unauthorized I Materials") to the Mill's tailings celis,IUS,4pg4json will, subject to any specific requirements of the Executive Secretary as set forth in any notice, order, remediation plan or the equivalent, implement the following process: 4.1. Notifications a) Upon discovery, the Mill Manager or RSO will be notified immediately; and I Ul ++lS+Delison will provide verbal notification to the Executive Secretary within 24 hours of discovery followed by a written notification within five days of discovery. 4.2. Field Activities a) Upon discovery, Mill personnel will immediately cease placement of Unauthorized Materials into the Mill's tailings cells; b) To the extent reasonably practicable and in a manner that can be accomplished safely, Mill personnel will atterirpt to segregate the Unauthorized Materials from other tailings materials and mark or record the location of the Unauthorized Materials in the tailings cells. If it is not reasonably practicable to safely segregate the Unauthorized Material from other tailings materials, Mill personnel will nevertheless mark or record the location of the Unauthorized Materials in the tailings cells; c) To the extent reasonably practicable and in a manner that can be accomplished safely, Mill personnel will attempt to remove the Unauthorized Material from the tailings cells; and I al {J.$aDen6on will dispose of the Unauthorized Material under applicable State and Federal regulations. 4.3. Request for Approvals and/or Waivers If it is not reasonably practicable to safely remove the Unauthorized Materials from the I tailings cells, then IU$ADedSpg will: a) Submit a written report to the Executive Secretary analyzingthe health, safety and environmental impacts, if any, associated with the permanent disposal of the Unauthorized Material in the Mill's tailings cells; I OraftDate: @,zOOq 6 b) Apply to the Executive Secretary for any amendments that may be required to the GWDP and the Radioactive Materials License to properly accommodate the permanent disposal of the Unauthorized Material in the Mill's tailings cells in a manner that is protective of health, safety and the environment; and c) Make all applications required under the United States Nuclear Regulatory Commission's ("NRC's") Non-l Ie.(2) Disposal Policy, including {,rd+h€u+ limi+atie+obtaining approval of the Department of Energy as the long term custodian of the Mill's tailings, in order to obtain approval to permanently dispose of the Unauthorized Material in the Mill's tailings cells. 5. DMT VIOLATIONS 5.1. Tailines Cell Wastewater Pool Elevation Above the Maximum Elevations Part I.D.2 of the GWDP provides that authorized operation and maximum disposal capacity in each of the existing tailings cells shall not exceed the levels authorized by the Radioactive Materials License and that under no circumstances shall the freeboard be less than three feet, as measured from the top of the flexible membrane liner ("FML"). In the event that tailings cell wastewater pool elevation in any tailings cell exceeds the maximum elevations mandated by Part I.D.2 of the GWDP, ruSADenigqn will, subject to any specific requirements of the Executive Secretary as set forth in any notice, order, remediation plan or the equivalent, implement the following process: a) Upon discovery, the Mill Manager or RSO will be notified immediately; b) l++SADenlSon will provide verbal notification to the Executive Secretary within 24 hours of discovery followed by a written notification within five days of discovery; c) Upon discovery, Mill personnel will cease to discharge any further tailings to the subject tailings cell, until such time as adequate freeboard capacity exists in the subject tailings cell for the disposal of the tailings; d) To the extent reasonably practicable, without causing a violation of the freeboard limit in any other tailings cell, Mill personnel will promptly pump fluids from the subject tailings cell to another tailings cell until such time as the freeboard limit for the subject tailings cell is in compliance. If there is no room a another tailings cell. without violating the freeboard limit of such other cell. then. as soon as reasonably practicable. Mill personnel will cease to discharge any further tailings to any tailings cell until such time as adequate freeboard capacity exists ini{l tailings cells; 200q 7Draft Date: MarehStOctober 10, e) If it is not reasonably practicable to pump sufficient solutions from the subject tailings cell to another tailings cell, then the solution levels in the subject tailings cell will be reduced through natural evaporation; and 0 {USADeni;g! will perform a root cause analysis of the exceedance and will implement new procedures or change existing procedures to minimize the chance of a recumence. Excess Head in Tailings Cells 2 and 3 Slimes Drain Systems Part I.D.3.b)l) of the GWDP provides that IUSApgnilAn shall at all times maintain the avsrage wastewater head in the slimes drain access pipe in Cell 2 tobe as low as reasonably achievable, in accordance with a DMT Monitoring Plan approved by the Executive Secretary pursuant to Part I.H.13 of the GWDP, and that for Cell 3, this requirement shall apply only after initiation of de-watering operations. In the event that the average wastewater head in the slimes drain access pipe for Cell 2 or, after initiation of de-watering activities, Cell 3 exceeds the levels specified in the DMT I Monitoring Plan, lusaDegbon will, subject to any specific requir-ments of the Executive Secretary as set forth in any notice, order, remediation plan or the equivalent, implement the following process: a) Upon discovery, the Mill Manager or RSO will be notified immediately; b) Mill personnel will promptly pump the excess fluid into an active tailings cell, or other appropriate containment or evaporation facility approved by the Executive Secretary; c) If the exceedance is the result of equipment failure, Mill personnel will attempt to repair or replace the equipment; 5.3. If the cause of the exceedance is not rectified within 24 hours, HJSADeniqon will provide verbal notification to the Executive Secretary within the ensuing 24 hours followed by a written notification within five days; and If not due to an identified equipment failure, tr{+SADeniSq! will perform a root cause analysis of the exceedance and will implement new procedures or change existing procedures to minimize the chance of a recurrence. Excess Elevation For Tailings Solids Part I.D.3 b)2) of the GWDP provides that upon closure of any tailings cell, +US+Dgnl!q! shall ensure that the maximum elevation of the tailings waste solids does not exceed the top of the FML. d) e) lDraftDate: @,200q In the event that, upon closure of any tailings cell, the maximum elevation of the tailings waste solids exceeds the top of the FML, tr{J+ADgnllg! will, subject to any specific requirements of the Executive Secretary as set forth in any notice, order, remediation plan or the equivalent, implement the following process: a) Upon discovery, the Mill Manager or RSO will be notified immediately; b) +US,aDgUUg! will provide verbal notification to the Executive Secretary within 24 hours of discovery followed by a written notification within five days of discovery; c) To the extent reasonably practicable, without causing a violation of the freeboard limit in any other tailings cell, Mill personnel will promptly remove tailings solids from the subject tailings cell to another tailings cell, or other location approved by the Executive Secretary, until such time as the maximum elevation of the tailings waste solids in the subject tailings cell does not exceed the top of the FML; and d) IUS,+Dgnbon will perform a root cause analysis of the exceedance and will implement new procedures or change existing procedures to minimize the chance of a recurrence. 5.4. Roberts Pond Wastewater Elevation Part LD.3 c) of the GWDP provides that the Permittee shall operate Roberts Pond so as to provide a minimum 2-foot freeboard at all times and that under no circumstances shall the water level in Robe{s Pond exceed an elevation of 5,624 feet above mean sea level. In the event that the wastewater elevation exceeds this maximum level, eJs,apenllg4 shall remove the excess wastewater and place it into containment in Tailings Cell 1 within 72 hours of discovery, as specified in Part I.D.l c) of the GwDp. In the event that,I{JSApsnilen fails to so remove any such excess wastewater, lusADgntson will, subject to any specific requirements of the Executive Secretary as set forth in any notice, order, remediation plan or the equivalent, implement the following process: a) Upon discovery, the Mill Manager or RSO will be notified immediatelyi and b) [JS,aDgnrson will provide verbal notification to the Executive Secretary within 24 hours of discovery followed by a written notification and proposed corrective actions within five days of discovery. 5.5. Feedstock Storage Area DraftDate: @,20062 Part LD.3. d) of the GWDP provides that open-air or bulk storage of all feedstock materials at the Mill facility awaiting Mill processing shall be limited to the eastem portion of the Mill site area described in Table 4 of the GWDP, and that storage of feedstock materials at the facility outside that area shall be performed and maintained only in closed, water-tight containers. In the event that, storage of any feedstock at the Mill is not in compliance with the requirements specified in Part I.D.3. d) of the GWDP, IUSAD9nI!9! will, subject to any specific requirements of the Executive Secretary as set forth in any notice, order, remediation plan or the equivalent, implement the following process: Upon discovery, the Mill Manager or RSO will be notified immediately; +Us+Denisol will provide verbal notification to the Executive Secretary within 24 hours of discovery followed by a written notification within five days of discovery; Mill personnel will: (i) move any open-air or bulk stored feedstock materials to the portion of the Mill site area described in Table 4 of the GWDP; anC(ii) ensure that any feedstock materials that are stored outside of the area described in Table 4 of the GWDP are stored and maintained in closed, water-tight containers ; and(iii) to the extent that any such containers are observed to be leaking. such leaking containers will be placed into watertight over-pack containers. and any impacted soils will be removed and will be deposited into the Mill's active tailines cell: and d) gJSADenUq! will perform a root cause analysis of the non-compliant activity and will implement new procedures or change existing procedures to minimize the chance of a recurrence. 5.6. Mill Site Chemical Reagent Storage Part I.D.3. e) of the GWDP provides that for all chemical reagents stored at existing storage facilities, +t+S,4DglfSon shall provide secondary containment to capture and contain all volumes of reagent(s) that might be released at any individual storage area, and that for any new construction of reagent storage facilities, the secondary containment and control shall prevent any contact of the spilled reagent with the ground surface. In the event that luS+Denilog does not provide the required secondary containment required under Part I.d.3. e) of the GWDP, {tJS+DenEon will, subject to any specific requirements of the Executive Secretary as set forth in any notice, order, remediation plan or the equivalent, implement the following process: a) b) c) DraftDate: @,2006{ 10 b) c) a) Upon discovery, the Mill Manager or RSO will be notified immediately; ItgSADedSg! will provide verbal notification to the Executive Secretary within 24 hours of discovery followed by a written notification within five days of discovery; and [JSADen$q! will promptly remediate any spilled re-agent resulting from the failure to provide the required secondary containment under Part I.d.3.e) of the GWDP, by removal of the contaminated soil and disposal in the active tailings cell. Failure to Construct as per Approval5.7. Part LD.4 of the GWDP provides that any construction, modification, or operation of new waste or wastewater disposal, treatment, or storage facilities shall require submittal of engineering design plans and specifications, and prior Executive Secretary review and approval, and that a Construction Permit may be issued. In the event that, any new waste or wastewater disposal, treatment, or storage facilities are constructed at the Mill facility without obtaining prior Executive Secretary review and approval, or any such facilities are not constructed in accordance with the provisions of any applicable Construction Permit, g+S+Deg1gon will, subject to any specific requirements of the Executive Secretary as set forth in any notice, order, remediation plan or the equivalent, implement the following process: a) Upon discovery, the Mill Manager or RSO will be notified immediately; and b) [JS+Denison will provide verbal notification to the Executive Secretary within 24 hours of discovery followed by a written notification and proposed corrective actions within five days of discovery. 5.8. Failure to Comply with Stormwater Management and Spill Control Requirements Part I.D.8 of the GWDP provides that trUSADenison will manage all contact and non- contact stormwater and control contaminant spills at the Mill facility in accordance with an approved Stormwater Best Management Practices Plan, pursuant to Part I.H.17 of the GWDP. In the event that any contact or non-contact stormwater or contaminant spills are not managed in accordance with the Mill's approved Stormwater Best Management Practices Plan, uSApeqilen will, subject to any specific requirements of the Executive Secretary as set forth in any notice, order, remediation plan or the equivalent, implement the following process: a) Upon discovery, the Mill Manager or RSO will be notified immediately;and DraftDate: @,2006d 11 b) ltgsADeniSpt will provide verbal notification to the Executive Secretary within 24 hours of discovery followed by a written notification and proposed corrective actions within five days of discoveryi_ald L-.fo tne extent stl such contaminant spill in accordance with the Mill's approved Stormwater Best Management Practices Plan. To the extent it is no longer practicable to so manage any such spill. Denison will agree with the Executive Secretarv on appropriate clean up and other measures. lnraftDate: @,20Cfd 12 OCT-I?-?@@7 t6z@8 Pase: 1215 Oenieon Mlnce (USA) CorF. 101i0 tTlh Streel, Sutt! 9SO Donvcr, C0 80266 usA rcl :303 62&7799 Fex : 303 S8$,4'l2s www.dcnlsonmine3.com Facsimile Transmittal Mr. Jonathan P. Cook, Division of iladiation Control Fax No.: 801-5gg-4097 DENlsoJ)dd TWNES To: October 12,2007 Company: Utah Oivision of Radiation Corrtrol Date: From: DavidC. Fry_denlund pf@ ;- Whita Mesa Miil Please see attached letter dated October lZ, ZOOT ir\o)$r()\''^Q\"'\] MINES USR To:918015334A91o P ase z?t !6 Denison Mlnee (USl) Corp. 1050 17th Strcct, Suite 990 Donver, CO 80265 U$A Tel : 80S A2F7798 Fox : 303 389-4125 www,donlsonmineg.com october 12,2007 VIA FACSIMILE AND US MAIL Jonathan P. Cook, p.E. Division ol Radiation Control Utah Department of Environmental euality 168 North 19S0 West Salt Lake Clty, UT 84114-4BSO Dear Mr. Cook: Be: AprilT' 2006 Draft Gontlngency PlanJorDenisor irlnss (U.SA)Corp. (,,Deni8on,,) whlte Mesa Mill,ae Required under Part l.H.l6 ol stete of utah GWDP No. uawsz6oo+;'nlque"t-ioi n*.ri"ion and Be-Eubmlttal-Your Letter of $eptember S, 2007 Fleference is made tq.-y-o-Y.l letter of September 5,.2007 regarding the dralt contingency plan for Dsnison,swhito Mesa Mill (the..Mlll"), ln your leiter you set out sEvdral co-ncerns rolating to*tl.re iraft Contingency planthat you ask us to addres$, and you reque-st that we revi"" anO r+suUrnlt the plan. Enclosed with this lett€r is a revised oraft contingency Ptan lor the Mill, marked to indicate changes over theApril7,2006 version. We respond to your questions as follows (your questions or cornments are repeated below in italics, followed byour response): t 7. The ownership of the Mitt has changed since Aprilt, 2006. please revise the Conthgency ptanv accordingly- Tho ownership of the Mill has.not changed; lgryever, the name of the operator of the Mill was changed inDecember 2006 from International uranium (uSA) corporut,on to Denison Mi;e; iGAi corp. This change hasbeen incorporated into the attached revised Oratt Ftan.' 2' Now that the Cett 44 retrofit has-bean epproved, both DMT and BArsfandards appty to the Mil site.P/oase revise the Contingency plan accordingly. The Mill's DMT Plan is currently in the process of being revised to includa cell 4A. lt is therefore pr.mature atthis time to revise the Contingency plan to lncorporato OtUf for Cell 44, Once me revLeJOMT plan has beenapproved by the Exec{tive Secretary, Denison will revise tne coniingency plan accoroinjty and will submit therevised contingerrcy Plan to the Executive secretary ro,. approraL "e-"-J 3' Yau note thal tho.conthlg.engy Plan pravides, in .se.ctiott 3.9(d) on page 5, that ,,tf it i5 conctuded that thecontamination is the result of current or past.activities at tne'iiii, i)ie ii'eiitiaie'iiientiat remediatactions, inctuding actions to restore and maintain grouiaiiteiiurtity ti iis)iii tiiipir*rt fimirs wilt not be OCT-t?-?AA7 t5z@8 Fnom:DENIS0N NINES USRo To:918815334A91o Page:3215 exceoded at the complience monitoring point and that DMT witt be reestablished, as wett as actions thatmer?ly ellow natural attenuation to operate and actions that invotva apptying fir etteiit ConcentrationLimits (ACLs'} You ask thet we provida a detailed tist of actions in titi boitingeniy ptan sectlon 3.4 of the Plan addresses the types of actiorrs that will be taken (1.e., the submittal ot a GroundwaterFlsrnediation Plan). section 3-4 describes, the types ol acrions rhat wil tir rir"n, in!;;;;;] rerms. As tho typeol remediation will_depend.on the specif ic circurnitances, it is not possibte 6 il;;yil;r;ipecific than asalready set out in Section 3_4" In order to batter tie Section 3.9 into Section 3.4, we have added the following sentence to the end of Section3.3(d): lf groundwater remcdlation is required, Denison will prepare and submit to thc ExecutiveSecretary a Ground Water Bemecliation Plan, a$ desbribea in Section 8,4 beiow, - 4- You note that the contingency Ptln.pravldg!,.,i!,r, s."?.!jon 4 on page 5, that,,part t.c.e ot the GWDp providesthat discharga of other compounds into the Mitt's tailings celli, sich as paints, used oll, entifreeze,p.esticides, or any other contamlnent nat de.fined as t ie.(Z) iaterial isfironionii.',- iiu-as* how thts affectsthe "current practice of disposing of paint chips . . . tn thd iailings calls?, Ths Mill may dispose of dried paint chips or flakes on equipment or paint chips that may resutt from sandblasting or slmilar activitias. These are wastes generated in "onneciion witn'tire mirii"g'process and aretherefore 11e.(2) byprorluct material, This diffeisfrom disposalof pure unused, uncon-tdrninared peint, thar isnot a waste, into the tailings cell-s, which may nol ue r re,(a) nyproiluct material and, il not, would not be able tobe directly disposed of in the Mill,s tailings cells. 5' Saction 1 3-!c) on pege 6, You have asked .us.to change the words "incturltrtg without timitalion obtalningapprovalof" ta "including obtaining apprcvat of We have made the requested charrge, 6. With respect b fie requlremenls set out in.sections .5.1 (a) thraugh 5.t(f) ot the plan, you have asked if Milloperations will be halted untilthe wastewater pool elavaiion nas iroppid back oeiii' ini minimumfreeboard level section 5'1(c) of the Plan provides that upon disoovery, Mill personnel will cease to discharge any fuilhertailings to the subJect tailings cell, until such tlme.as adeqrai" treepoaro capacity e^isis in if,e subject tailingscell for the disposal of the-6ilings. Section 5.1 (d) providbs ff'at io ir,e extent redsonaoiy pirrtic*bte, withoutcausing a violation of the freeboard limlt in any itirir tailinis ."ir, nrirr p*r*onnet witt prorirfilv-pr*p ftuids fromthe subject tailings oell to another tailing$ cell until such tirne a* itre fri.board limlt rJr. ir'"-s,lu.,ect taitings coll isin compllance, lf there ls nO room available in another cell, without violating the freeboard limit of such cell, then, as soon asreasonably practicable, Mill personnel will cease.to dischar[e anv iurtn", railings to inv ceii untit sucn tim6 asadoquate freehoard capacity €xists in all cells, we have aoteJ tlleJoitowing tanguage ro section s.1 (d): lf there is no room available in arrother cell, without violating the freeboard limit of suchother tailings cell, then, as soon as reasonably practicable,"Miil perronnei wiit cease todischarge any furthertallings !o any tailings citiuntil CuJn'tim" as adequate freeboardcapacily exists ln all tailings cells. OENISOJ)dJ MINES ocl-t?-?o@1 t6|o9 FroUNIsoN NINES usA To:9188153=L Paset4t16 7. Section 5.4, page g: Add paragraphs similar to 5.1,d), 5.1.e), and S.t.f) Tha Permit already specifically addresses what must be done if the freeboard limit in Floberts pond isexceoded. Specifically, Part 1,D.3.(c) of the Permit statos that in the everrt that the wastewater elovationexceeds the maximum lavel' Denison shall remove the 6xc6s$ wastewater arrd place it into containment inTailings Cell 1 within 72 hours of discovery. such.a specific provision does not exist to address exceedances of freeboard limits in the Mill's tailings cells.That is why tho procedures in-S99tion-5,1 (9), (e) and (f) are not repeated in Seotion 8.4. For exampts, giventhe specif ic wording of Part 1.D.3 (c) of the Permit, fiere is no need'to repeat Secrnn.'S.r iO) ano (e) ol theContingency Plan in Section 5.4 of the Contingency Plan. Similarly, part 1.D.3 ol the permit'cont€mptates thatthe lreeboard limit in Floberts Pond may be exceeded temporarily from time to time, anJ f ir", u Ty.hourwindow in which to get the solution levcls in Roberts Pond'downio tho maximum eievati;n betoro a violatroncan be issued under the pemit. Therelore, we do not belleve that it is nei"isaiy io purfor* a root causeanalysis for exceedances of freeboard limits in Floberts Pond, as is requircd tor J*ceioences of freeboard timitsin the tailings cells. Accordingty, we have not added paragraphs similar to 8.1(d), (e) and (f) to section 5.4. 8- Sectrbn 5-5, page g: whet witl be done shoutd it be dlecovered thar fdadstoci containers are taaking? We have added the fottowing as a n6w Section S.S (c)(iii): (iii) to the extent thet any such containers are observed to be leaking, such leakingcontainers willbe placed lnto watertight over-pack containers, and arry imi'acted soils wiltbe rernoved and will be deposited into the Mlli,s active tailirrgs cell; and 9. lyction 5.8, page t 1: Provide more detaits on what wilt be done upon discovery of a failure to comply withStormweter Manegement and Spitt Control Raquiraments, such as method for ite,an-uj We have added the loflowing as a new Soction S-g(c): (c) To the extent still practicable at the. time _oJ discovery, Denison will manage any suchcontaminant spill in accordance wlth the Mitt's approved Stormwater Best 1iinagtmentPractioes Plan. To the extent it is no longer pra'ctlcaute to so manage any srJh spitt.Denison will agree with the Executive Secreiary on appropriate cteln uri inJ o1'ermeasures. lf you have any questions regarding the foregoing, or require any further information, please conlacl theundersigned. Yours very truly, Hon F, Hochstein Harold R. Floberts Steven D, Landau David Turk Presideht, Regulatory Affairs and Counsel DENISOJ)dJ MINES oCT-L?-?a@1 t6:@9 FronT:NiSON NINES USR To:9184153*rb WHITE MESA URANIUMMILL CONTINGENCY PLA]\ As Requircd [Inrler p&rt I.H.16 of sratc,f Lltah Grouudwatcr Discharge pennit No.uGW3?0004 Prepared by: Denver CO 8(J2(i5 @aaCFZ Paee:5216 en+$mqpq$9!_Mines (US A ) Corp,erefio* 1050 ITrh Street, .Suitc 950 I Draft Date: li4ur<#4trgg1obElJll, ZAfFd ocT-7?-?aa7 t6:o9 FroUNisoN NINES usA To:9188153=Orl PaeetTtIS Thc State of l,tah has gritnLed Cround Warer Discharge permit No. UGW3700O4 (the"CWI)P") rO, (USA) Cory.or&$ieR,s("[J$Al)cnison's") white Mesa urauium Mill (the'Mill'), rn] cwnp specifics thcconstnrction, opurilt"ion, and monitorirrg rccluircment$ for all facilities flt thc Mill that havea poLentinl to disr-:ltarge. pollutants directly or irrrlirectly into grourr6watcr. 7,. PURPOSE 'l'his C-'ontiflgency Plan (the "Plan") providet a detailed list of nctiotrs {Js.{Denison willtale t1 lcgain c:,ompliance wirh (iwDP liurits antl Discharge Minimizarion fffiot,ogy("DMT") rctluirc,mcnts defined in Parts t.C zurrt I.D of ttre-cwop. Thc timcly.n""uiionof contingerrcy and coffective action.c oul.lined in this Plan will pr.crvitle [J$.ADeUisonwith thc basis Lo exercise the Affir:urativu Action Defense prnrriiion irr part t.c:Oi*f U.Ciwl)P and thcreby avoid noncompliaucc stal,us and potential euforccrnont actioni. Thc contingency ac:tions rcquirerl lrr rcgain complianco with GWDp lirnils and DMTrccluirements defined in parrs I.c and LD of the GwDp arc clc.,icribed below. 3. GROI]NDWATE,R CONTAMINATION Sirrr:e Lhere are many diffcrcrrt. possible scenarios that ccruld potentially give rise t'grountlwater contamination. autl since thc developmr-,nt and hnplemeruafion of arcmcdialion plogram will nortttrtlly be specitic to each 1:rartioultu sce[ario, this plan docsrtot orrtlinc a definitive remediatiott prr)gram. Rather, this plun clcscribes thc steprs thatwill he ltrllowcd by l+*$ADcnisoq in the eveut {usADerriau is found to be out ofcompliarrce with rcspect to afly r:onstituent in arry nror*t*ifu well. pursuaut to parr I.C.2of thc GWDP. W}en the concen[ation ol'rTry paramoter in a compliance nronitoring well is gut ofcourpliunce, u$A,Denl!o! will, sut:.ject to specit)c lcquirements of tire bxecutive WM'I'U MIT$A T.IRANIUM MILL CON'I'INGENCY PLAN . State of Utah (Jrourrdwuter Dischargc permit No. UGW370004 I. TNTRODUCTION I Part I.G.3.c) of the GWI)P provldes that, iu the evcrnl a c,lrmpliance actiou is iuitiutcd againstus*tlgqilq! tbr violatiorr of pcrmit conrtitirrns relatirrg tu bcist availabte rechnology o,. bur,tusADeuis! rrrly affirnrativcly defend aguinst that action by denroust,.lring rtrat ii has made appropriatcnotiticui.ns, that the tailu'c- rvus n.t inteniional or caused uy l+ls+pEouqtr:* negligencc. thatru$ApqlinrE has taken adequate fllcasurcs tr.r nleet pc.rnrit jonditi.r,r,, 11 g timety minne, or lus submittednn udl:qttaie plan and schedulc lor meeting pcrmit co0clitions, und rhflt (he provirions of UCA Ig-S-IU7have rrot been violatcd. Draft Datc: l,lnrcn++AEgbgfl_0, ZOe6d ACT-t?-"qO7 !5:t@ To:9188153*T Paee:8215FrominENISON I'IINES USRo secretary a's sct forth in any notice, otder, reiuodiation plem or thc equivalent, irnplementthc t'ollowing proce.ss; 3.I. Nqtificarion ilJS+U9lEon will notify thc Executive Secrctary of thr: out ol'c:ompliance .rtatus wirhin24 hours after dctcction of that status followed hy u writtcn notice within 5 days aftcrldetection, as rcquiretl under part I.G.4.a) of rhc: GWDP. +JSADeobon will contittuc accelerRted samplin_g t'or rhc pirameter in thar courpliarrcemonitoring wcll pursuant to parl I.G.I of thecwt:p. unlcss t]re Executiv" s;;;;,clctermines that othet periodic sampling is appropriare, rrntil rhc I'ncility is Uroug1iiilto couqlliarrr:rr, as required under part I.G.4.b) of the GWDP. II'the accelerated monitoriug tlunon$trate.t that the Mill is rt1 longer out of compliarrcewith respect to a parorrrctsr hr it weil, then, with the writtcn .rpproval of the F.xec:utiveSecretary, {USADeIrispg will c:sase accelerated nronitodng fui the parameler, aud nofurther steps will be lirllowcd by rus*Denuog with rcspc-ct r..ruch parameter. 3.3. Submission of PLur and Timetable lf the acceleratcd monitorilg confirms that the MiU is out of tompliance with rcspccr ro aparamcter ir a wel[, t]rcn, within 30 doys of snch confirmation, lu+,qDeniie! *i1preparc and suhnrit to tltc Executivc Secretary a plan ancl a time scSedulc t'or as$essme.nrof the sources, extcrt ancl potential d,ispersiori ot'ihe contamination, an<l an cvaluation ofpotential remedial actiott ttr restore and nraintain grountl water quality to ensuro thirtpelruit limits will not bc cxceeded at the conrpliancc rnonitoring poinl arrcl that DMT willbe ree.'itehlisltctl' as requircd ttnder part LG.4-c) of the Gwt)p. *I'his plan will normallyinclude: 'Ihe requiren:ent for rus,+Dexrson to prepalc a dctailed ancl co,rprehc'sive operational hislory of the facility and.rurrotrnding areas which explores allactivities that mrry have contributed to thc cuntariination; A rcquirenrent for l{J$,{Dguilon tcr complcre an evaluation, which rnay includegeochcurical and hydrogeological unalyscs, to determine wlrethcr or not thecontattdltation was caused by Mill astivitics or was causcd hy nahrral forces oroffsitc irc:tivities; lf it is stlncludcd that the contamination is the resulr of currcllr or past activitiesat thc Mill' {t+sADE4Iso! wiil prepare a characteriz.ati,n Rcport, whicrrcharactcrizes the physical, chemic:al, and radiologicar extent of the grouncl watercoulalnination. This will rrormally include a descriptiun uf any adrlitional wcllsto bc used or insralled to characte.rize the plunre oo,i th. hytlr'ieologic 3.2. a) b) c) DraftDate: *+affilr++Ocebera0,Ze0b7 4 ocT-t?-?@47 t6:1@ Fr" om: |IENIS0N NINES USR To:918015334A97o P ase :9t 1,6 charactcristics of the affccted zotlc. thc analylical parameters to [rt: obtuinetl, thc sirrnples of ground water to he tuken, and any other mcans to nreasur.c and characterizc the affectcd grorrnd wflter and contaminatiorl zone; and d) If it is cortclrrdecl that the contaminatiorr is thc rcsult ol current or past activitics at the Mill' ilJS'+D*u!()E will cvaluate potcutial remedial actions, incllclilg actions to rest,ore and maiutain grountlwatcr quality to ensure that pcrmir liriitswilll]ot bcr sxsssflgd at the compliarrce monitbringpoint and rhilt.IjMT will bereestablished, as well as actions thal merely allow natural attenuution to operatc ancl actions thot involve applyiug Ibr Alternate concentration Limits (.,niLs,'). i.son will .1.4. GroundwaterRemediationplan If the Executive Secretsry dcturrnines that gpound watcr rcnrerliation is needed,fiJ$ADguisan will subnrit a Grourrd Water Remecliation Plirn tu the Executive $ccrctarywithin the lime frame requestc.d by the Executive Secretary, T]re Cround Water Remediation Plau will nornurlly inclucle: a) A desffiption auclschedule of how +t+$-+D-giU will implenrent a corroctiye actiott progr arn that prcvents contaminant.s ti'orn ,^.r",lirrg the groulcl warerprotecrion levels or ACLs at the cornpliancc uroniroring poin(s) or othcrlocations approvetl hy the Executive Secret.ary, by removing the contafitirrunts. treating tlrcm fur place, or by other ,ocan$ as approvcd by the Exccur.ive Secretaryt b) A_descriptir'rn r.rf thc rcrnediation monitoling progxam to demonstr.atc the ef'frctivcucss r"rl' tlre plan; and c) De.scriptions ol lrow cottcctive actiou will upply to cach sourcc ol the pollution. t+lSADg!i$9! will irtrplement the Gtouurl Wirler Remediation plan in acconlance with aschedule to be suhmittccl by lus*Dgulg! and approved by the Executivr: secretary. 4. MILL DISCHARGE VIOLATIONS - INCLTIDIN(; TINAUTHORIZEDDISCHARGI] (.)R RELBASE OF PROHIBITED CONTAMINANTS TO TIIITAILING CELLS Part I,C.2. of the GWDP provides that only I I e.(2) by-product uratuial uuthorizert hy thcMill's State trl'fltah Radiooctive Mater:ials License rrrt. ur-ztOO47g (rhe.,Raclioactiirc Materials Licfitse") shall be dischargcrl to or disposed of in rhE Mill's tailing.s cells. Draft Date: I4nr€H+AqgbeLlA, ZOWZ OCl-7?-?@@7 t6tt|From:nENIS0N MINES USAt To:918815334?97o Pase: 11u 16 b) c) Apply to the F.xcclrtive Sec.retary f'or any afllcnchrcnts that may be requir.crJ ro thecwDP and the Radioactive Materials Lisensc to properly accommodatc thc pel'mzuIcnL disposal of the Unauthoriz,erl Material in the Mill's tailings cells in armruIcr thal. is protective of hcalth, .ral'ety and the enviroruncuti and Makc all applications requilcd undcr [re united states Nuclc:ar Regulatory commission's ("NRC'ri") Non-l le.(2) Dispo.sal ptrlicy, including n*h€-r+limitetisrmhtaining appro_val of the l')epzutincnt of Energy as thelong rerm cust.odinn of thc Mill's tailings, in ordcr t0 obtain approvat to pcrnranently disposc of rhe unauthoriz.ed Matcrial iu the Milr's tailing* celis. DMT VIOLATIONS5. 5.t. Paft I'D.2 ol'lhe CWDP plcvidcs that auftorized operation and rnaximum disposal capacity itr cuch of the-cxisting tflilitg.\ uells shall nqt exceed rltc lcvels authorized by thcRadioactivc Mul.erials License ancl tltat under no circumstances sh*ll [he. freeboar.rl hc tcsstharr tlrrcc fcr:l, a$ measured fronr thc top uf lhe flexihle nrernbrzurc liner (..FML,,). ln thc cvent that tailings cell wastewilter pool elevation in urry lailings cell exceeds 1hemaxittturn elevations manrlatcd by Part t.D.2 of the (iWDP, iUS+D*$", wilt, subjccr toany spccilit: requiremcnts of the Excc:r.rtive Secretary as sct lbnh in any notice, p.dci., remetlintion plan or thc equivalent. irrrplement the fbllowirrg proco.ss: a) upon discovery, thc Milr Manager or RSo will bo notified immediatcly; b) tgSAIlglUAtl will provide verbal notificarion ro ther Executive Secretary within 24 hours of discovery followecl by a written notifir:ation within tive tlays ol' di.scovery; t:) Upon discovery' Mill persotutel will ceasc to clisr:harge any further tailings to thcsubject tailings cell, trutil suc:h time as adequatu frr:r,buard capacity exlsts-'fur the sub.jecr tailirrgs ccll lilr the disposal of the tailings: d) To lhe extent reasouatrly practicable, without causing a violation of tlrt: lie.eboardlirnit iu ary other tailings cell, Mill personncl will piomptly punrp tluirls Itom thc lubject tailings cell to another tailing.s cell until such tim. as-the iieeboartl Iimitfor the .<lrhject tailings cell is in compliance Drall Date: Mar€hSIgqAbqJ,Z\W 7 ocT-te-?@O7 L52Lt Pase t 7?t 16 If it is rot rea$onably practicahle to pump sul1ic:ien( solutions trom the $ub.icct tailings cell to another tailings cell. thcn thc solution levels in rhe srrlrject tailings cell will be rcduced thrtrrrgh natural evaporation; iurd rus+pguisa$ will pcrl'orm a root cause anarysis of thc cxccetlance and will implement new ptr:ccdurc$ or changc existirrg proccclurcs ro minimize the chancc of a rccurrence, 5.2. I Purr I'f).1.b)I) of the CWDP pt'ovides that ltlS'4Dcnison shall at all rinres nraintain lhe average wastewater head in thc slirlrcs rlrain access pipe in Cell 2 to bc as lgw as reauonably achicvable, in act::ordiurt:t': vi1[ a DMT Monitorirrg Plan apprtrvetl by the ExccuLive Seuetary pur.cuant to Part I.H. l3 of the CWDP, and rjrat tor C.rtt 3, this rcquirr:rrrent. shall apply only after: initiation of cle-watering operations. ln the event that tlre trveragc werstewuter head in the sliures clrain access pipe fbr Cell 2 or, after initiation of de-waterirtg activities. Cell 3 exceeds the tevcls spccifieti in the DM't' I Monittrring Plau, ffJSADE"ison will, subject to any specific requircnrcrrts 9f the Excctttive Sec.retary as seL furth in any notice, order, remediation plan or the equivalent, implement the followinB ptocssri: a) Upon discovery, tltc Mill Munager or RSO will [rc norilied immediately; b) Mill pcrsonnel will promptly punrp the exce.\s lluid into an active tailings cell, orother appropriirtt: cuntainmcnt or evaporation lar:ility itpprovcd by the Eigcurive Secretary; c) [f the cxceeclutrse is thc result of equipnrer:t failurc, Mill personncl will attempr to repail or ruplace the cquipment; I al If the cattsr: oI the exceedance is not rccrilicd within 24 hours, {tl$&Dcu5$ will provide verhal no(ific:ation to the Exectrtive Scr:rctury within the er*,ri,rg 24 hours t'oll.wetl by a wrirten notificati.n within five riays; und | ") If not clue to an irlcntil'ied equipment failurc, {USADenim! will perforur a rool causc analysis of thc exc:eedance and will implcrncnt new procedures or charrgc existing procetlures to nriuimizc the chance of a rccurrence. 5.3. F.xcgss EL:vation Fo{ Tailings ti,olids . Paft I.D.3 h)2) of thc GWDP provides rhat uporr ck;sure of any railings ccll, | +US*pgtj-t}! .thall e,nsure that thc nruximum elcvation of theiailingr:, wilstc solids doesnot excccd the top of the FM t.. FrorUNIsoN NINES usA To:9180153=*rb e) I tlraft Date; Marehltoqlg@,IOW I ' CICT-1e-?Z@7 t1t l-t From:DENIS0N NINES USRo To:918815334497a Pase: 13215 in the evcnt [hat, upol] c:lo$ureof any trrilings ccll, ths maximum elevntioll ol'the taililgs waste solids exceecls the top of ttre FMI., [JSADenison will, suhject to any ,rpecificrequil'clll$rtu of the Executive Sccrttary fl$ $et forUl iu any nolice, order, remidiatiop planor thc equivalent, impleurent the lbllowing proce$ri: a) Upou discovery, thc Mill Munager or RSO will bc netified immediately; b) usAl:enlpgg will provide vert'ral norilicatiou to the Executivc Secretary withir 24 houns of rJisurvery fhllowed by a written notification within livc days of discovr.:ry; c) Ttr the extcnt reasonably pructicable, without causing a violatiorr of the Iieehr.rarcllimit in any other tailings crdl, Mill personnel will pi'ourptly remove tuilings solids lrom the subject tnilirrgs r:cll to anothe.l tailirigs cJ[,-,,. other locatitin apptovcd by Lhe Exccutive .Scuc.tary, uutil such tirne ns thc lnaximum elevatiorrtrl'the tailings woste solid$ in the subject tailings cell rkrcs not exceed rhe top ofthe FML; and d) gJ$+De.niso[ will pcrtonrt a root cause anatysis ol-the exceedance ancl willimplenre[t new procedurcs ot'change existing proc:cdure.r to minimize thc c]ranceof a rccumence. 5.4. Roberts Ppnd Wastewatcr Elevation Part [,D.3 c) of the GwDP provide.s that the Perrrrit.tee shall operute Roberts pod su as toprovide a minimurrr 2'toot Iieeboard at all timcs *rrd lhat undir no circurrrstances shallthc wate.r leveJ in Roberls Pontl excecd an elevation of 5,624 fcet ahovc rucan sea lcvel. In the event drat the wu'ilowatcr elevation exceecls this maximum level, #$ADenisonshall remove the execss waritewatcr and placc iL in(o containment inTrrilings C;l l--within 72 hours of discovcry, as specifiecl in part I.D.3 c) of rhe (.iwDp. In the cvcnt that, IUs+D%i€gg lirils to so remove any sur:h excess wa.rrewfltc.r,ruS+pentsol will, sutrjcct. lo any specific requirements of the Execurive Secrctary as settbrth in uny notice, orclcr, rcmediation plan or:tlrr, et{r.rivalcnt, inrplemcnt the following l)l'L)rlL)s.$: a) Upon discovery, the Mill Manager or RSO will be norifled inrmc6iately; and b) {+Js+Dedlgtl will provide verhnl notilic:ation to the Executive Secretary withi, 24 hour.s of discovury followed hy a wdtrcn notification arrd proposed correctivcactions wirhirr livc days of discovery. 5.5. Feedsrock Storaqe Area Drafl Dat.e: Ma*e*++Aqlqbqi_e,Z}CFd g OCT-t?-?q@7 L6t1,?From:DENISON NINES USF To:918O1 P ase z 74/ 76 Part I.D.3- d) of thc GWDP provides thst opcu-irir or bulk storage of all fccdstock n'latcdals a[ the Mill facility awaiting Mill proccssing shall bc limiterl to thc r.;utem Portion of Lhe Mill site alea dcscriherl in Table 4 of the GwDp, ancl that storage of I'cetlstock matffials at thc fhcility outside that area shall bc: perlbrmed and nraiutair:ccl only in clo.sed, watertiglrt containem. In the evcttt tltat., storage of any feedstock at thc Mill is not ip cornpliarrce with therequirenrcnts specified in Part I.l).3. d) ol'the CWDP, {JS*D-rct!!qt wil[, subject to allyspecific rcquirurnenls of the Execftivc sccretary a.s set forilr in zury ilot"ice, ord.r,rerrrediatiou plan or the cquivalent, irnplc:rnsnt the fbllowing proccss: a) upon discovel'y, rhc Mill Manager or RSo will he notified immediately; h) fiJSADgluql will provide verbal notification to the Executivc Secrerar:y wirhin 24 hours of discovery followed by a writterr notitjcatiou within five dayi ofdiscovery; c) Mill persorrnel will: (i) lltove ilny opcn'air or bulk stored f'eedstot:k materials to rhe portion of lheMill sirr: area described in'l'ablc 4 of lhe CWDp:and(ii) elrsLl.rc tltat any feedstock matcrials thal are stored outsiclc of the areadescrilrccl irr Table 4 of the GWDP arc stored and maintainod irr c:losedwater:-tight contaiuers; an<l to he 5334A97o d) +t+s*D9ltilg will perforur a rooL cause analysis of the non-compliant activity and will irnplement new proccclttrcs or change exi.stirrg proc:edures to milinrizc the chsncc of a recuncnce. 5,6. Lail_S.uc Ctrernicat ner Part I.D.3. e) of thc GWDP provides that for all chernical rcagents srorcd ar existingstorage facilities,It+SADslrron shall provide scr:ondury contiinnrent to capture anicontain all volurtre.r of reagerrt(s) that might bc rclcased at any irrdividual .*tr.og, urur,and that for any new construction of rcagent storage facilit.icsl thc secoudary c'.o"utailmenl.and corttrol shall prevent any corrtar-t ol'the spilled- reagent with the grrcund .surfacc. lD the evenl ihat lt+S+!eni!Q[ does not provitle thc requirecl sct,onduy conrainrnentrequired urrder Part t.d.3. e) of thc GWDp, uti-Algqboll will. sub.iccr to ony spe"ificrequireurcnts of the Executive Sccrctary as set forth in any nolic:e. order, remcdiarion planor the equivillent, implement tlrc lblk:wing proccris; Draft Date; l*,sr€t+3l.OctobgilQ, 20062 l0 OCI-L"-"@@7 t6t7?Pase: 15215 uporr discovcl'y, lhe Mill Manager or Rljo wil be notified immediately: IU$Apeniso! will provide vcrbal nr.rtifiontion to the Execurivc Secretary withiu 24 hours of discovery followcd by a writtcn norification within live days of discovery; and {us+pgglQl] will promptly remediate any spillerl rc-agcnr resulting tionr thc failute to provide the requirerl secondary contuinmcnt under Part l.cl.3.e) of the GWDP, by removal of the contalrlinaled soil and disposai in the active tailings cell. 5.7. Failt+te to Construct as pcr Apprrrval Part I.D'4 of the CWDP pxrviclcs tltirt any c.onstruction, nroclitication, or operation of ncw w4.ste or witstowater disposal, trealnrcnt, or litorage facilitie.s shall rccluire submittal of crrgineering design plans and spccifications, and prior Execut"ive Sccrctary review and approval, eurd that a C()n$truction Permit may be issued. In tlrt: t:vcnt [hat, any new wastc ot wnsl.ewater disposat, trcatfircul., or storage facilitics are $(tn$tntcted at the Mill facilit.y without obtaining prior Execntivc. Sec.retary review artd approval, ot any such thcilities ilre not con.$tructed in accorrlance with the provisiuns of ary applicable conslnrction Pcnni{., lt*s,+Dcuiso! will, subject to any spe"ific rcqttircrtrenls of thc Executivc Sccrctury as set tbrth in any uoticc, order, remecliation plan or thc cquivalent, implemerrt thc following process: a) Upon discovcl'y, the Mill Manager or RSO will be notified in:rnccliarcly; und b) t+JtiADenrlqr will pruvitle verbal notification to the Executive Secretary within 24 hours of discr.rvcry followed by a written notification and proposecl concctiye actions within live days of discovery. Purt I.D.8 of the GWDP pnrvides that lu{i,\Dcr)i$ol will manage. all contact and non- c:ontact stormwilter aud conl.rol contaffiinarrt .sllills at the Mill facility in accordance with air approved Stornrwatcr Bcst Mlruragcmefit Practiccs Plan, pursuant to Part LH.t] of the GWDP. h the evcnt that nuy c,ontact or non-coutact stormwflter or contaminant spills are not managed in accorclancr: with the Mill's approvcd Stormwater Be.st Management practices Plan, trUS-ADerrison will, subject to any specitit: requirements of the Excc:utive Semetary a$ set fofth in arry noticc, order, remediation plau or the equivalerrt. implcrnent the following proccss; a) Upon discovery, the Mill Mantrgur or RSO will he notiticrl irnmediatety;and Fronrf:NISON MINES USA To:9180153=Orj a) Lr) c) 5,8. I Drati Dute: Ma+ets&Leqllehell0,2006] ll ocr-t?-?aaT t5zt? FroUNIsoN NINES USR To:918@15334?91o Page: 16216 h) ItJSADeni$on will provide verhalnotilicatir.rn to the Exccutive Secrctary within 24 hours ol discovcry lirllowed by a written notification atd proposcrl currective actions within fivc days ol'cliscovery; lry! gl-'To-lhe-Erteu-sli Draft I)ate: +*rrc++Actobef-10, 20067 12 W NI TJC Tel:303 6287798 Fax: 303 389 4125 April 7,2006 VIA US MAIL Mr. Dane L. Finerfrock Executive Secretary Utah Radiation Control Board State of Utah Department of Environmental Quality 168 North 1950 West Salt Lake City, UT 84114-4850 Re: Draft Contingency Plan for White Mesa Uranium Mill, as Required Under Part 1.H.16 of State of Utah Groundwater Discharge Permit No. UGW370004 Dear Mr. Finerfrock: Enclosed are two copies of the draft White Mesa Uranium Mill Contingency Plan for your review and approval, as required under Part 1.H.16 of State of Utah Groundwater Discharge Permit No. UGW370004. Vice President and General Counsel cc: Ron F. Hochstein Harold R. Roberts David Turk 1050 Seventeenth St., Suite 950 Denver, Colorado, USA 80255 , *rr*l,o*or u RAN' u M (usA) coRPoMTroN info@intluranium.com www.intluranium.com '"ilh WHITE MESA URANIUM MILL CONTINGENCY PLAN As Required Under Part I.H.16 of State of Utah Groundwater Discharge Permit No.UGW370004 Prepared by: International Uranium (USA) Corporation 1050 lTth Street, Suite 950 Denver CO 80265 March 31,2006 Draft Date: March 31,2006 Page No. 31. TABLE OF CONTENTS INTRODUCTION PURPOSE GROUNDWATER CONTAMINATION Notification Continuation of Accelerated Monitoring Submission of Plan and Timetable Groundwater Remediation Plan 4. MILL DISCHARGE VIOLATIONS _ INCLUDING UNAUTHORIZED DISCHARGE OR RELEASE OF PROHIBITED CONTAMINANTS TO THE TAILING CELLS4.1. Notifications 4.2. Field Activities4.3. Request for Approvals and/or Waivers 5. DMT VIOLATIONS5.1. Tailings Cell Wastewater Pool Elevation Above the Maximum Elevations 5.2. Excess Head in Tailings Cells 2 and 3 Slimes Drain Systems5.3. Excess Elevation For Tailings Solids5.4. Roberts Pond Wastewater Elevation5.5. Feedstock Storage Area 5.6. Mill Site Chemical Reagent Storage5.7. Failure to Construct as per Approval5.8. Failure to Comply with Stormwater Management and Spill Control Requirements J 4 4 4 5 6 6 6 7 7 7 8 9 9 10 10 11 Draft Date: March 31,2006 WIIITE MESA URANIUM MILL CONTINGENCY PLAN State of Utah Groundwater Discharge Permit No. UGW370004 1. INTRODUCTION The State of Utah has granted Ground Water Discharge Permit No. UGW370004 (the "GWDP") for International Uranium (USA) Corporation's ("IUSA's") White Mesa Uranium Mill (the "Mill"). The GWDP specifies the construction, operation, and monitoring requirements for all facilities at the Mill that have a potential to discharge pollutants directly or indirectly into groundwater. ,PURPOSE This Contingency Plan (the'oPlan") provides a detailed list of actions IUSA will take to regain compliance with GWDP limits and Discharge MinimizationTechnology ("DMT") requirements defined in Parts I.C and I.D of the GWDP. The timely execution of contingency and corrective actions outlined in this Plan will provide IUSA with the basis to exercise the Affirmative Action Defense provision in Part I.G.3.c) of the GWDP and thereby avoid noncompliance status and potential enforcement actionl. The contingency actions required to regain compliance with GWDP limits and DMT requirements defined in Parts I.C and LD of the GWDP are described below. 3. GROUNDWATER CONTAMINATION Since there are many different possible scenarios that could potentially give rise to groundwater contamination, and since the development and implementation of a remediation program will normally be specific to each particular scenario, this Plan does not outline a definitive remediation program. Rather, this Plan describes the steps that will be followed by IUSA in the event IUSA is found to be out of compliance with respect to any constituent in any monitoring well, pursuant to PartLG.2 of the GWDP. When the concentration of any parameter in a compliance monitoring well is out of compliance, IUSA will, subject to specific requirements of the Executive Secretary as set forth in any notice, order, remediation plan or the equivalent, implement the following process: I Part I.G.3.c) of the GWDP provides that, in the event a compliance action is initiated against IUSA for violation of permit conditions relating to best available technology or DMT, IUSA may affirmatively defend against that action by demonstrating that it has made appropriate notifications, that the failure was not intentional or caused by IUSA's negligence, that IUSA has taken adequate measures to meet permit conditions in a timely manner or has submitted an adequate plan and schedule for meeting permit conditions, and that the provisions ofUCA l9-5-107 have not been violated. Draft Date: March 31,2006 Notification IUSA will notiff the Executive Secretary of the out of compliance status within 24 hours after detection of that status followed by a written notice within 5 days after detection, as required under Part I.G.4.a) of the GWDP. 3.2. Continuation of Accelerated Monitorins IUSA will continue accelerated sampling for the parameter in that compliance monitoring well pursuant to Part I.G.1 of the GWDP, unless the Executive Secretary determines that other periodic sampling is appropriate, until the facility is brought into compliance, as required under Part I.G.4.b) of the GWDP. If the accelerated monitoring demonstrates that the Mill is no longer out of compliance with respect to a parameter in a well, then, with the written approval of the Executive Secretary, IUSA will cease accelerated monitoring for the parameter, and no further steps will be followed by IUSA with respect to such parameter. 3.3. Submission of Plan and Timetable If the accelerated monitoring confirms that the Mill is out of compliance with respect to a parameter in a well, then, within 30 days of such confirmation, IUSA will prepare and submit to the Executive Secretary a plan and a time schedule for assessment of the sources, extent and potential dispersion of the contamination, and an evaluation of potential remedial action to restore and maintain ground water quality to ensure that permit limits will not be exceeded at the compliance monitoring point and that DMT will be reestablished, as required under part I.G.4.c) of the GWDP. This plan will normally include: The requirement for IUSA to prepare a detailed and comprehensive operational history of the facility and surrounding areas which explores all activities that may have contributed to the contamination; A requirement for IUSA to complete an evaluation, which may include geochemical and hydrogeological analyses, to determine whether or not the contamination was caused by Mill activities or was caused by natural forces or offsite activities; If it is concluded that the contamination is the result of current or past activities at the Mill, IUSA will prepare aCharacterization Report, which characteizes the physical, chemical, and radiological extent of the ground water contamination. This will normally include a description of any additional wells to be used or installed to characteize the plume and the hydrogeologic characteristics of the affected zone, the analytical parameters to be obtained, the samples of ground a) b) c) Draft Date: March 31,2006 water to be taken, and any other means to measure and characteize the affected ground water and contamination zone; and d) tf it is concluded that the contamination is the result of current or past activities at the Mill, IUSA will evaluate potential remedial actions, including actions to restore and maintain groundwater quality to ensure that permit limits will not be exceeded at the compliance monitoring point and that DMT will be reestablished, as well as actions that merely allow natural attenuation to operate and actions that involve applying for Alternate Concentration Limits ("ACLs"). 3.4. Groundwater Remediation Plan If the Executive Secretary determines that ground water remediation is needed, IUSA will submit a Ground Water Remediation Plan to the Executive Secretary within the time frame requested by the Executive Secretary. The Ground Water Remediation Plan will normally include: a) A description and schedule of how IUSA will implement a corrective action program that prevents contaminants from exceeding the ground water protection levels or ACLs at the compliance monitoring point(s) or other locations approved by the Executive Secretary, by removing the contaminants, treating them in place, or by other means as approved by the Executive Secretary; b) A description of the remediation monitoring program to demonstrate the effectiveness of the plan; and c) Descriptions of how corrective action will apply to each source of the pollution. IUSA will implement the Ground Water Remediation Plan in accordance with a schedule to be submitted by IUSA and approved by the Executive Secretary. 4. MILL DISCHARGE VIOLATIONS - INCLT]DING UNAUTHORIZED DISCHARGE OR RELEASE OF PROHIBITED CONTAMINANTS TO THE TAILING CELLS PartI.C.2. of the GWDP provides that only 11e.(2) by-product material authorized by the Mill's State of Utah Radioactive Materials License No. UT-2300478 (the "Radioactive Materials License") shall be discharged to or disposed of in the Mill's tailings cells. Part I.C.3 of the GWDP provides that discharge of other compounds into the Mill's tailings cells, such as paints, used oil, antifreeze, pesticides, or any other contaminant not defined as 11e.(2) material is prohibited. In the event of any unauthorized disposal of contaminants or wastes (the "Unauthorized Materials") to the Mill's tailings cells, IUSA will, subject to any specific requirements of Draft Date: March 31,2006 the Executive Secretary as set forth in any notice, order, remediation plan or the equivalent, implement the following process: 4.1. Notifications a) Upon discovery, the Mill Manager or RSO will be notified immediately; and b) IUSA will provide verbal notification to the Executive Secretary within 24 hours of discovery followed by a written notification within five days of discovery. 4.2. Field Activities a) Upon discovery, Mill personnel will immediately cease placement of Unauthorized Materials into the Mill's tailings cells; b) To the extent reasonably practicable and in a manner that can be accomplished safely, Mill personnel will attempt to segregate the Unauthorized Materials from other tailings materials and mark or record the location of the Unauthorized Materials in the tailings cells. If it is not reasonably practicable to safely segregate the Unauthorized Material from other tailings materials, Mill personnel will nevertheless mark or record the location of the Unauthorized Materials in the tailings cells; c) To the extent reasonably practicable and in a manner that can be accomplished safely, Mill personnel will attempt to remove the UnauthoizedMaterial from the tailings cells; and d) IUSA will dispose of the Unauthorized Material under applicable State and Federal regulations. 4.3. Request for Approvals and/or Waivers If it is not reasonably practicable to safely remove the Unauthorized Materials from the tailings cells, then IUSA will: a) Submit a written report to the Executive Secretary analyzingthe health, safety and environmental impacts, if any, associated with the permanent disposal of the Unauthorized Material in the Mill's tailings cells; b) Apply to the Executive Secretary for any amendments that may be required to the GWDP and the Radioactive Materials License to properly accommodate the permanent disposal of the Unauthorized Material in the Mill's tailings cells in a manner that is protective of health, safety and the environment; and c) Make all applications required under the United States Nuclear Regulatory Commission's ('NRC's") Non-l le.(z) Disposal Policy, including without 6Draft Date: March 31,2006 limitation obtaining approval of the Department of Energy as the long term custodian of the Mill's tailings, in order to obtain approval to permanently dispose of the Unauthorized Material in the Mill's tailings cells. 5. DMT VIOLATIONS 5.1. Tailinss Cell Wastewater Pool Elevation Above the Maximum Elevations Part I.D.2 of the GWDP provides that authorized operation and maximum disposal capacity in each of the existing tailings cells shall not exceed the levels authorized by the Radioactive Materials License and that under no circumstances shall the freeboard be less than three feet, as measured from the top of the flexible membrane liner ("FML"). In the event that tailings cell wastewater pool elevation in any tailings cell exceeds the maximum elevations mandated by Part I.D.2 of the GWDP, IUSA will, subject to any specific requirements of the Executive Secretary as set forth in any notice, order, remediation plan or the equivalent, implement the following process: a) Upon discovery, the Mill Manager or RSO will be notified immediately; b) IUSA will provide verbal notification to the Executive Secretary within 24 hours of discovery followed by a written notification within five days of discovery; c) Upon discovery, Mill personnel will cease to discharge any further tailings to the subject tailings cell, until such time as adequate freeboard capacity exists in the subject tailings cell for the disposal of the tailings; d) To the extent reasonably practicable, without causing a violation of the freeboard limit in any other tailings cell, Mill personnel will promptly pump fluids from the subject tailings cell to another tailings cell until such time as the freeboard limit for the subject tailings cell is in compliance; e) If it is not reasonably practicable to pump sufficient solutions from the subject tailings cell to another tailings cell, then the solution levels in the subject tailings cell will be reduced through natural evaporation; and 0 IUSA will perform a root cause analysis of the exceedance and will implement new procedures or change existing procedures to minimize the chance of a recurence. 5.2. Excess Head in Tailines Cells 2 and 3 Slimes Drain Systems Part I.D.3.b)1) of the GWDP provides that IUSA shall at all times maintain the average wastewater head in the slimes drain access pipe in Cell 2 to be as low as reasonably achievable, in accordance with a DMT Monitoring Plan approved by the Executive Draft Date: March 31,2006 Secretary pursuant to Part I.H.13 of the GWDP, and that for Cell 3, this requirement shall apply only after initiation of de-watering operations. In the event that the average wastewater head in the slimes drain access pipe for Cell 2 or, after initiation of de-watering activities, Cell 3 exceeds the levels specified in the DMT Monitoring Plan, IUSA will, subject to any specific requirements of the Executive Secretary as set forth in any notice, order, remediation plan or the equivalent, implement the following process: a) Upon discovery, the Mill Manager or RSO will be notified immediately; b) Mill personnel will promptly pump the excess fluid into an active tailings cell, or other appropriate containment or evaporation facility approved by the Executive Secretary; c) If the exceedance is the result of equipment failure, Mill personnel will attempt to repair or replace the equipment; d) If the cause of the exceedance is not rectified within 24 hours, IUSA will provide verbal notification to the Executive Secretary within the ensuing 24 hours followed by a written notification within five days; and e) If not due to an identified equipment failure, IUSA will perform a root cause analysis of the exceedance and will implement new procedures or change existing procedures to minimize the chance of a recuffence. 5.3. Excess Elevation For Tailinss Solids Part I.D.3 b)2) of the GWDP provides that upon closure of any tailings cell, IUSA shall ensure that the maximum elevation of the tailings waste solids does not exceed the top of the FML. In the event that, upon closure of any tailings cell, the maximum elevation of the tailings waste solids exceeds the top of the FML, IUSA will, subject to any specific requirements of the Executive Secretary as set forth in any notice, order, remediation plan or the equivalent, implement the following process: a) Upon discovery, the Mill Manager or RSO will be notified immediately; b) IUSA will provide verbal notification to the Executive Secretary within 24 hours of discovery followed by a written notification within five days of discovery; c) To the extent reasonably practicable, without causing a violation of the freeboard limit in any other tailings cell, Mill personnel will promptly remove tailings solids from the subject tailings cell to another tailings cell, or other location approved by the Executive Secretary, until such time as the maximum elevation Draft Date: March 31, 2006 of the tailings waste solids in the subject tailings cell does not exceed the top of the FML; and d) IUSA will perform a root cause analysis of the exceedance and will implement new procedures or change existing procedures to minimize the chance of a recurrence. 5.4. Roberts Pond Wastewater Elevation Part I.D.3 c) of the GWDP provides that the Permittee shall operate Roberts Pond so as to provide a minimum 2-foot freeboard at all times and that under no circumstances shall the water level in Robers Pond exceed an elevation of 5,624 feet above mean sea level. In the event that the wastewater elevation exceeds this maximum level, IUSA shall remove the excess wastewater and place it into containment in Tailings Cell 1 within 72 hours of discovery, as specified in Part I.D. c) of the GWDP. In the event that, IUSA fails to so remove any such excess wastewater, IUSA will, subject to any specific requirements of the Executive Secretary as set forth in any notice, order, remediation plan or the equivalent, implement the following process: a) Upon discovery, the Mill Manager or RSO will be notified immediately; and b) IUSA will provide verbal notification to the Executive Secretary within 24 hours of discovery followed by a written notification and proposed corrective actions within five days of discovery. 5.5. Feedstock Storaee Area Part I.D.3. d) of the GWDP provides that open-air or bulk storage of all feedstock materials at the Mill facility awaiting Mill processing shall be limited to the eastern portion of the Mill site area described in Table 4 of the GWDP, and that storage of feedstock materials at the facility outside that area shall be performed and maintained only in closed, water-tight containers. In the event that, storage of any feedstock at the Mill is not in compliance with the requirements specified in Part I.D.3. d) of the GWDP, IUSA will, subject to any specific requirements of the Executive Secretary as set forth in any notice, order, remediation plan or the equivalent, implement the following process: a) Upon discovery, the Mill Manager or RSO will be notified immediately; b) IUSA will provide verbal notification to the Executive Secretary within 24 hours of discovery followed by a written notification within five days of discovery; c) Mill personnel will: Draft Date: March 31,2006 move any open-air or bulk stored feedstock materials to the portion of the Mill site area described in Table 4 of the GWDP; and ensure that any feedstock materials that are stored outside of the area described in Table 4 of the GWDP are stored and maintained in closed, water-tight containers; and d) IUSA will perform a root cause analysis of the non-compliant activity and will implement new procedures or change existing procedures to minimize the chance ofa recurrence. 5.6. Mill Site Chemical Reaqent Storaee Part I.D.3. e) of the GWDP provides that for all chemical reagents stored at existing storage facilities, IUSA shall provide secondary containment to capture and contain all volumes of reagent(s) that might be released at any individual storage area, and that for any new construction of reagent storage facilities, the secondary containment and control shall prevent any contact of the spilled reagent with the ground surface. In the event that IUSA does not provide the required secondary containment required under Part I.d.3. e) of the GWDP, IUSA will, subject to any specific requirements of the Executive Secretary as set forth in any notice, order, remediation plan or the equivalent, implement the following process: a) Upon discovery, the Mill Manager or RSO will be notified immediately; (i) (ii) b) c) IUSA will provide verbal notification to the Executive Secretary within 24 hours of discovery followed by a written notification within five days of discovery; and IUSA will promptly remediate any spilled re-agent resulting from the failure to provide the required secondary containment under Part l.d.3.e) of the GWDP, by removal of the contaminated soil and disposal in the active tailings cell. Failure to Construct as per Approval5.7. Part I.D.4 of the GWDP provides that any construction, modification, or operation of new waste or wastewater disposal, treatment, or storage facilities shall require submittal of engineering design plans and specifications, and prior Executive Secretary review and approval, and that a Construction Permit may be issued. In the event that, any new waste or wastewater disposal, treatment, or storage facilities are constructed at the Mill facility without obtaining prior Executive Secretary review and approval, or any such facilities are not constructed in accordance with the provisions of any applicable Construction Permit, IUSA will, subject to any specific requirements of the Executive Secretary as set forth in any notice, order, remediation plan or the equivalent, implement the following process: Draft Date: March 31,2006 l0 a) Upon discovery, the Mill Manager or RSO will be notified immediately; and b) IUSA will provide verbal notification to the Executive Secretary within 24 hours of discovery followed by a written notification and proposed corrective actions within five days of discovery. 5.8. Failure to Comply with Stormwater Manaeement and Spill Conffol Requirements Part LD.8 of the GWDP provides that IUSA will manage all contact and non-contact stormwater and control contaminant spills at the Mill facility in accordance with an approved Stormwater Best Management Practices Plan, pursuant to Part I.H.l1 of the GWDP. In the event that any contact or non-contact stormwater or contaminant spills are not managed in accordance with the Mill's approved Stormwater Best Management Practices Plan, IUSA will, subject to any specific requirements of the Executive Secretary as set forth in any notice, order, remediation plan or the equivalent, implement the following process: a) Upon discovery, the Mill Manager or RSO will be notified immediately; and b) IUSA will provide verbal notification to the Executive Secretary within 24 hours of discovery followed by a written notification and proposed corrective actions within five days of discovery. l1Draft Date: March 31,2006