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HomeMy WebLinkAboutDRC-2008-002602 - 0901a06880af53feJoN M. nsMAN.rR. Goventor GARY HERBERT Lieutenant Governor ^rG..I ..- 1 \.. :.----l'\BJi Department of Environmental Quality Richard W. Sprott Executive Director DIVISION OF RADIATION CONTROL Dane L. Finerfrock Diredor May 2,2008 David C. Frydenlund Vice President and General Counsel 1050 Seventeenth Street, Suite 950 Denver, CO 80265 Subject: October 12,2007 Draft Contingency Plan for Denison Mines Corporation (DMC), as Required Under Part I.H.l6 of State of Utah GWDP #UGW370004: Conditional Approval 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 h 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 Executive Secretary DF/JPC: jc F:\FACILITIES\DENISON - WHITE MESA\Contingency Plang007-10-10 Contingency Plan9008-05-02 Contingency plan cond app - final.doc 168 North 1950 West . PO Box 144850. Salt lake city, uT 841 t4-4850. phone (801) 536-4250. fax (80t) 533-4097 T.D.D. (801) 536-4414 . wwv,.deq.utah.gov JoN M. HilMAN, rR. Govemor GARY HERBERT Lieutenant Governor Department of Environmental Quality Richard W. Sprott Executive Director DIVISION OF RADIATION CONTROL Dane L. Finerfrock Director TO: FROM: DATE: MEMORANDUM Loren Morton Johnathan P. Cook, P E. /& February 29,2008 SUBJECT: Evaluation of the October 12,2O0l Draft Contingency Plan for Denison 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 Denison Mines. Mines, as review by 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. 1 Section 3.3.d) (groundwater contamination) I requested a detailed list of actions. Denison Mines responded: "Section 3.4 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 terms. 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 Ciry, UT 841 l4-4850. phone (801) 536-4250. fax (801) 533-4091 T.D.D. (801) 536-4414 . www.deq.utah.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 Cell 4A. 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 4A. F:\FACILITIES\DENISON - WHITE MESA\Contingency PlanV007-10-10 Contingency PlanV008-02-29 Memo Contigency Plan review.doc roN M. HrnMAN.rR Govenutr GARY HERBERT Litutenanl Gtn'enutr State of Utah Department of Environmental Quality Richard W. Sprott Execulive Direrlrr DIVISION OF RADIATION CONTROL Dane L. Finerfrock Direcutr David C. Frydenlund Vice President and General Counsel 1050 Seventeenth Street, Suite 950 Denver, CO 80265 Subject: April 7, 2006 Draft Contingency Plan Required Under Part I.H.l6 of State of Revision and Resubmital. September 5,2007 for Denison Mines Corporation (DMC), as Utah GWDP #UGW37OOO4: Request for Dear Mr. Frydenlund. We have received and reviewed the April 7,2006 Draft Contingency PIan submitted by'then International Uranium (USA) Corporation (IUSA). We have several concerns that we would like to have addressed. Please revise the plan lo resolve the issues in the Attached Table L The DRC also had the following general comments that need to be resolved: l. The ownership of the mill has changed since the April 7,2006. Please revise the contingency plan accordinglY. 2. Now that the Cell 4,A retrofil has been approved, both DMT and BAT standards apply to the mill site. Please revise the contingency plan accordingly. Sincerely, /Fta'''/'t'* Johnathan P. Cook. P.E. Division of Radiation Control Enclosure F:\FA('lLll'lES\lll('- WHITE MESA\(iontingcncy l'hn\2fXXr-tX-07 (iontinltcncy I'lan\2(X)7-(I)-ffi [-r'ltcr requcst lirr inlirrmatron - ljnal.drx l6l{Norrhl()5{)Wcst.l'Olirx l44lt50..Salt l-:rkc('it1,.tl'ltt4ll4-4tJ50.phonc(ll0l)536-4250.1111 (801)513-4097 'f'.1).1). (ltol) 53(r-44 1.1 . \'tt'tr..dul.utoh.!r^ la'I €) o(J aEo o (* an () C) G) t-o. t,-l: orrl" cI ho';l.E alA PlQ o-rItl-l,h '=l€c o!tO-(Je.- c)6?. t- lJa-.2e! 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E.:E; S f S\P s* L-{It$sNsErrtil"H=Et,.lX'I'E:i=.=,!sESL=irtrtiEEEt$ LlaL -EA P-B* L-\=B%: ;* rrYSr%=E:8*-:LLa -v qJt,"Ets'= OO \) \'.) ^ L L\iN\E:.SA\LAX,.O{SL...\nEs =v<.;=q, q, .Y .tsst u bbs \E ^-Ltir= US{: p- L!\vL ='E)\e ! ts*-A- SR -:=-r.i, !t+..v',vOdo,r l >.' =goi N $i%vA^!X Sa'bl Edl *i:l s $: E i EItE si;il Ei\ I E iI Ft Ei SSn iE s .s sl\'$s E:.:l St+ $Ftss Et stg5:rt Fss$E [s rr a.)oo(go. Ot (.) o0 o. o\ 0)ao o- o)oo cUo. o Iq) U) r., a., rf Ica+ G'=C ar, - f, ..l: V') V'rr oq \n q) oo 0. q) GF State of Utah Department of Environmental Quality Richard W. Sprott Executive Director DTVISION OF RADIATION CONTROL Dane L. Finerfrock Director TO: FROM: DATE: ,o* *. ,IMAN, rR Governor GARY HERBERT Lieutenant Governor Loren Morton MEMORANDUM Johnathan P. Cook, P.E fn/"""""""' August 14,2007 SLJBJECT: Evaluation of the April 7, 2006 Draft Contingency Plan for Denison Mines, as 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 many 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 befollowed 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. F:\FACILITIES\lUC - WHITE MESA\Contingency Planu006-04-07 Contingency Planu007-08-15 Memo Contigency Plan review.doc 168 North 1950 West. PO Box 144850. Salt take City, UT 841 14-4850. phone (801) 536-4250. fax (801) 533-,1097 T.D.D. 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N $s'Ft:s$'sNa<(3 "ssss:i ^vvNTE'ErEh(-)!paoa a=dvv.-o.\\ = 9: Q-: E.PyS iF .s BtE th, ri\ ra'F\ 3.o !* ISp.s:\ a.\s* s'\.:'= > 1\ ep'r o * -': ;PE7iY\>6 sieI l\=>C)u-uou !(g-x >.Or t{) -S' r- C)uo oi SFLa'-spsE.S 'Xas SEN\\ ^\N\DSt:E.:F b ! iEESs.sEis x I SSIiEEHs,N i S Xt ts PN H t t H sPv u oo* P'i ; qT E:sS: r: s E i5Er.SESS:E P'F t-.S'E SiSERS'S {S $*ESEs s ! s u'* _"i S E E X+ S $s*EsrS o\ C)bo N c.)a0 tu cno z oa ()a l-io(H E o oao oO qr La\o N F- s q) (+- o IJ] h q) U oQg5C.)ocnClca eEocoE:a g f .E o -EOd:&-E -r}E? "x.ic, v r\ <dp-6 pE v )C/) o{ trEodo.>! cEU(.)'. >,tr0uE oo 5.drnEA trq) Bo q)n oOIc! al Fl q)a L Er ahq) f:le th (l)a ()o0 O. cao 9p Fi U)o z o C,) q)o lio ni >t() C)b0 (-) (ir t< \o c.tr- $ () q< o ) cn E] o "J)/ Denison Minee (USA) CorP. 1050 17th Street, Suite 950 Denver, CO 80265 usA Tel :303 62&.7798 Fax : 303 38$4125 fa DENIS MINES 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: 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: Conditionat Approvat 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 Cell4A, 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, Ron F. Hochstein Harold R. Roberts Steven D. Landau David E. Turk White Mesa Mill - Standaf Oneratins Prcrcedures W Book # l9-Groundwater Discharge Permit Plans and Procedures Paee I of 13 WHITE MESA URANIUM MILL CONTINGENCY PLAN As Required Under Part I.H.165 of State of Utah Groundwater Discharge Permit No.UGW37W4 Prepared by: Denison Mines (USA) Corp. 1050 17th Street, Suite 950 Denver CO 80265 @,20079 White Mesa Mill - Stande Ooeratins Procedures W Book# l9-Groundwater Discharge Permit Plans and Procedures Page 2 pI_! 3 ) 3. 3.1. 3.2. 3.3. 3.4. Page No. 3 3 4 4 4 5 1. 6 6 6 7 7 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 RBLEASE OF PROHIBITED CONTANIINANTS TO THE TAILING CELLS 4.1. 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 Systems 5.3. Excess Cell4A Leak Detection Fluid Head or Daily Leak Rate 5*5.4. Excess Elevation For Tailings Solids 545.5. 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&5.9. Failure to Comply with Stormwater Management and Spill Control Requirements 8 9 98 _10e loe 1_Le IZ+ t2+ 2 WOoeratine Procedures D?08 Revision: DUSA-l Book# 19-Groundwater Discharge Permit Plans and Procedures Page 3 ptl 13 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 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. 2.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 defined 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. z WOoeratins Procedures W Book# l9-Groundwater Discharge Permit Plans and Procedures Eace-4-aru 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 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 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 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 a) b) c) 2 White Mesa Mill - Standa! Onerating Procedures D?08 Revision; DUSA-l Book# l9-Groundwater Discharge Permit Plans and Procedures Page 5 of 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 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, 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 Partl.C.z. of the GWDP provides that only l1e.(2) by-product material authorized by the Mill's State of Utah Radioactive Materials License No. UT-23N478 (the "Radioactive Materials License") shall be discharged to or disposed of in the Mill's tailings cells. z , 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 wrthin24 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: 2 Oneratins Procedures D4J08 Revision: DUSA-I Book# l9-Groundwater Discharge Permit Plans and Page 6 o[_!3 o White Mesa Mill - Standa! Oneratins Procedures W Book# l9-Groundwater Discharge Permit Plans and Procedures Page 7 pI_I3 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 1e.(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 Part I.D.2 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"). In 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 Executive 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. 2 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 in all tailings cells; 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 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. 3 and 34A Slimes Drain Systems Part I.D.3.b)l) of the GWDP provides that Denison 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 Secretary pursuant to Part I.H.l3 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 Cell4.A. Denison will provide continuous declining fluid heads in the slimes drain Iayer. in a manner equivalent to the requirements found in Part [.D.3.b). 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 or initiation of pumping conditions in the slimes drain layer in Cell4,A, 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) [f 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 White Mesa Mill - StandaU C)oeratins Procedures W Book# l9-Groundwater Discharge Permit Plans and Procedures Page 8 of 13 , White Mesa Mill - Standa! Ooeratins Procedures DU/08 Revision: DUSA-I Book# 19-Groundwater Discharge Permit Plans and Procedures Page 9 pll !3 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 Cell4A lrak Detection System Fluid Head or Daily Leak Rate Part I.D.6.a) provides that the fluid head in the Leak Detection System ("LDS") for Cell 4,{ shall not exceed I 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 Cell4A exceeds I foot above the lowest point in the lower membrane layer or the daily leak rate measured in the Cell4,A. LDS exceeds 24.160 gallons/day. 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 promgtly pump the excess fluid into an active tailings cell. or other appropriate containment or evaporation facility approved by the Executive Secretary. 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 new orocedures or change existing procedures to remediate the exceedance and to minimize the chance of a recurrence. 5*5.4. Excess Elevation For Tailings Solids Part I.D.3.+qP) 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 z , 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. *5.5. Roberts Pond Wastewater Elevation Part I.D.3.€q) 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 within 72 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 corrective actions within five days of discovery. 555.6. Feedstock Storage Area Part I.D.3.{) and Part LD.I I 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 Revision: DUSA-l Book# l9-Groundwater Discharge Permit Plans and Page l0 o:[_!3 White Mesa Mill- Standa! Ooeratins Procedures D?/08 Revision: DUSA-l Book# l9-Groundwater Discharge Permit Plans and Procedures 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-main+ained inersin accordance with an approved Feedstock Management Plan pursuant to Part I.H.2l 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.-d0 and Part t.D.l I 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; Denison will provide verbal notification to the Executive Secretary within24 hours of discovery followed by a written notification within five days of discovery; Mill personnel will: (iii) 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 e{ose$ Management Plan; and to the extent that any such containers are observed to be leaking, such leaking containers will be placed into watertight over-pack containers q 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. *65.7. Mill Site Chemical Reagent Storage Part I.D.3.*g) 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.*g) of the GWDP, Denison will, subject to any specific requirements b) c) (i) (ii) a White Mesa Mill - StandU Ooeratins Procedures DU/08 Revision: DUSA-l Book# l9-Groundwater Discharee Permit Plans and Procedures Paee 12 oL l3 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 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 disposal 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 immediatelyl and b) Denison will provide verbal notification to the Executive Secretary within 24 hours of discovery followed by a written notification and proposed coruective actions within five days of discovery. 5S5.9. Failure to Comply with Stormwater Management and Spill Control Requirements Part I.D.8I8 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 White Mesa Mill - StandU Ooeratins Procedures Du/O8 Revision: DUSA-I Book# 19-Groundwater Discharge Permit Plans and Procedures Page 13 of 13 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 and proposed corrective actions within five days of discovery; and 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. 2 DEN''Od/ MINES August 7,2OOB 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 Oenver, CO 80265 USA Tel :303 6297798 Fax : 303 389-4125 www.denisonmines.com ,7"" $ Received ItULi *,'-:,:t Division of Radlaiion Control Dear Mr. Finerfrock: 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 final version of the Contingency Plan, dated October 12, 2OO7, for your records. Yours very truly, Vice President, Regulatory Affairs and Counsel Ron F. Hochstein Harold R. Roberts 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 Street, Suite 950 Denver CO 80265 October 12,2007 Page No. Jl. 3 4 4 4 5 TABLE OF CONTENTS INTRODUCTION PURPOSE GROUNDWATER CONTAMINATION Notification Continuation of Accelerated Monitorins Submission of Plan and Timetable Groundwater Remediation Plan 4. MILL DISCIIARGE VIOLATIONS - INCLUDING UNAUTHORIZED DISCHARGE OR RELEASE OF PROHIBITED CONTAMINANTS TO THE TAILING CELLS 4.1. Notifications 4.2. Field Activities 4.3. 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 Systems 5.3. Excess Elevation For Tailings Solids 5.4. Roberts Pond Wastewater Elevation 5.5. Feedstock Storage Area 5.6. Mill Site Chemical Reagent Storage 5.1. Failure to Construct as per Approval 5.8. Failure to Comply with Stormwater Management and Spill Control Requirements 6 6 6 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. 2.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 corective 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 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 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 fbr 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. 3.1. 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 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 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) 4 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 of the 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 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. 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.I. Notifications a) Upon discovery, the Mill Manager or RSO will be notified immediately; and b) Denison will provide verbal notification to the Executive Secretary within24 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; 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. Tailings Cell Wastewater Pool Elevation Above the Maximum Elevations Partl.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 within24 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; 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 c) d) 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 LH.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) e) 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 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 recuffence. Excess Elevation For Tailings Solids5.3. 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 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) 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 reculTence. 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. ln 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 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. 9 \ In the event that, storage of any feedstock at the Mill is not in compliance with the requirements specifled 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; Denison 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;(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 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. 5.6. 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 Ld.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 within24 hours of discovery followed by a written notification within five days of discovery; and b) c) 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, 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. ln 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.S 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.l7 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) 1l ??t manage any such spill, Denison will agree with the Executive Secretary on appropriate clean up and other measures. T2 o "J)/ Denison Mines (USA) Corp. 1 050 1 7th Street, Suite 950 Denver, CO 80265 USA Tel : 303 62&7798 Fax : 303 389-4125 www.denigonmines.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 4 .a a''I r.;:it-" 0C1 20ui *^l'XiiJldko Dear Mr. Cook: 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 5,2OO7 Reference is made to your letter of September 5,2007 regarding the draft Contingency Plan for Denison's White Mesa Mill (the "Mill"). ln your letter you set out severalconcerns 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 April 7, 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 Mill was 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 Cell 4A retrofit has been approved, both DMT and BAT standards apply to the Mitt site. Please revise the Contingency Plan accordingly. The Mill's DMT Plan is currently in the process of being revised to include Cell4A. 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 witt not be exceeded at the compliance monitoring point and that DMT will be reestablished, as wellas actions that merely allow naturalattenuation 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 1 1e.(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 timitation obtaining approval of" 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 Mill operations willbe halted untilthe wastewater poolelevation 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 S.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. OENISOJ)// MINES 7. Section 5.4, page g: Add paragraphs similar to 5.1.d), 5.1.e), and S.l .f) The Permit already specifically addresses what must be done if the freeboard limit in Roberts Pond is exceeded. Specifically, Part 1D.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 why the 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 comply 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, Ron F. Hochstein Harold R. Roberts Steven D. Landau David Turk , Regulatory Affairs and Counsel DENISOJ)// MINES WHITB MESA URANIUM MILL CONTINGENCY PLAN As Required Under Part I.H.16 of State of Utah Groundwater Discharge Permit No.UGW37OOO4 Prepared by: Denver CO 80265 @20CFd lOratDate: @,201 TABLE OF CONTENTS INTRODUCTION PURPOSE GROT]NDWATER CONTAMINATION Notification Continuation of Accelerated Monitoring Submission of Plan and Timetable Groundwater Remediation Plan 4. MILL DISCHARGE VIOLATIONS - INCLT]DING TINAUTHORIZED DISCHARGE OR RELEASE OF PROHIBITEI) CONTAMINANTS TO TIIE TAILING CELLS4.1. 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 Solids5.4. 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 Page No. 3 3 4 4 4 5 1. 6 6 6 7 7 7E 8 9 9 10 l0_Lll lDraftDate: @,20CFd 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 ("IUSADenison'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 {{J$ADg!i!e! will take to regain compliance with GWDP limits and Discharge Minimization Technology ("DMT") requirements defined in Parts I.C and I.D of the GWDP. The timely execution of contingency and corrective actions outlined in this Plan will provide +++S,4DgUfg! with the basis to exercise the Affirmative Action Defense provision in Part I.G.3.c) of the GWDP and thereby avoid noncompliance status and potential enforcement actionl. The contingency actions required to regain compliance with GWDP limits and DMT requirements defined in Parts I.C and I.D of the GWDP are described below. 3. GROT]NDWATER CONTAMINATION Since there are many different possible scenarios that could potentially give rise to groundwater contamination, and since the development and implementation of a remediation program will normally be specific to each particular scenario, this Plan does not outline a definitive remediation program. Rather, this Plan describes the steps that will be followed by flJ$apgnipn in the event lU&4Dgd!_en is found to be out of compliance with respect to any constituent in any monitoring well, pursuant to PartI.G.2 of the GWDP. When the concentration of any parameter in a compliance monitoring well is out of compliance, {USADeg[5pg will, subject to specific requirements of the Executive ' Part I.G.3.c) of the GWDP provides that, in the event a compliance action is initiated against +t+SADed!a! for violation of permit conditions relating to best available technology or DMT, fUSADSnila! may affirmatively defend against that action by demonstrating that it has made appropriate notifications, that the failure was not intentional or caused by IJSADgdlgn's negligence, that [JS+DCni!g! 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{JSADgnlle[ 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 +t+SADenisg! 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, I{JSADeliSq! will cease accelerated monitoring for the parameter, and no further steps will be followed by fiJ$apgn:lso! with respect to such parameter. 3.3. Submission of Plan and Timetable If the accelerated monitoring confirms that the Mill is out of compliance with respect to a parameter in a well, then, within 30 days of such confirmation, [JSApenben will prepare and submit to the Executive Secretary a plan and a time schedule for assessment of the sources, extent and potential dispersion of the contamination, and an evaluation of potential remedial action to restore and maintain ground water quality to ensure that permit limits will not be exceeded at the compliance monitoring point and that DMT will be reestablished, as required under part I.G.4.c) of the GWDP. This plan will normally include: The requirement for RJSADgnison to prepare a detailed and comprehensive operational history of the facility and surrounding areas which explores all activities that may have contributed to the contamination; A requirement for {J$apgn:i!g[ 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,IJSADenilon 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: @,20CF{ 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, +ISADeUSon 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, +t+S+Denifq 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 l++SADCd!g! 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. {JSADgn:lso! will implement the Ground Water Remediation Plan in accordance with a schedule to be submitted by {{JSADenilq! and approved by the Executive Secretary. 4. MILL DISCHARGE VIOLATIONS _ INCLTJDING UNAUTHORIZED DISCHARGE OR RELEASE OF PROHIBITED CONTAMINANTS TO TIIE TAILING CELLS Part I.C.Z. of the GWDP provides that only lle.(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. DraftDate: @,200FZ 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, I{JSADenison 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 immediatelyl an6 b) [JsADpnllon 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) Iu$ADenlson 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 l{JSApgq[son 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; lDraftDate: @,20-l b) c) 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-11e.(2) Disposal Policy, including r+i1seu+ limi+a+ien-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 Tailings Cell Wastewater Pool Elevation Above the Maximum Elevations 5. 5.1. PartI.D.Z 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, IUSADggbq! 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; lUSADqtiq! 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 another tailines cell. without violating the freeboard limit of such other cell. then. as soon as reasonablv practicable. Mill personnel will cease to discharge any fufther tailings to any tailings cell until such time as adequate freeboard capacitv exists in all tailings cells; b) c) d) DraftDate: @,2006{ 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 I 0 +UsADenison 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 Svstems I fart I.D.3.b)1) of the GWDP provides that lUS,4Denison shall at all times maintain the average wastewater head in the slimes drain access pipe in Cell 2tobe 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, {tJSADeni5q! 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) [f 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, ilJ$ADelilgn 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, I{J$ADpnllg! will perform a root cause analysis of the exceedance and will implement new procedures or change existing procedures to minimize the chance of a recunence. 5.3. Excess Elevation For Tailines Solids Pat I.D.3 b)2) of the GWDP provides that upon closure of any tailings cell, | +US+pe!f!e! shall ensure that the maximum elevation of the tailings waste solids does not exceed the top of the FML. lUraftDate: @,20CFf In the event that, upon closure of any tailings cell, the maximum elevation of the tailings waste solids exceeds the top of the FML, I[+$aDcni!g]l 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) ilJSADentlg! 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,aDgni$g! will perform a root cause analysis of the exceedance and will implement new procedures or change existing procedures to minimize the chance of a recurrence. 5.4. Roberts Pond Wastewater Elevation Part I.D.3 c) of the GWDP provides that the Permittee shall operate Roberts Pond so as to provide a minimum 2-foot freeboard at all times and that under no circumstances shall the water level in Robe4s Pond exceed an elevation of 5,624 feet above mean sea level. In the event that the wastewater elevation exceeds this maximum level, ++lSADgUfW! shall remove the excess wastewater and place it into containment in Tailings Cell 1 within 72 hours of discovery, as specified in Part t.D.l c) of the GWDP. ln the event that,lUSADenison fails to so remove any such excess wastewater, +tgsADglilg! will, subject to any specific requirements of the Executive Secretary as set forth in any notice, order, remediation plan or the equivalent, implement the following process: a) Upon discovery, the Mill Manager or RSO will be notified immediately; and b) +USADe$qtf 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: @,20CFZ 9 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, +Us-Apgnrug! 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) +{+SaDen$A! will provide verbal notification to the Executive Secretary within 24 hours of discovery followed by a written notification within five days of discovery; c) Mill personnel will: (i) move any open-air or bulk stored feedstock materials to the portion of the Mill site area described in Table 4 of the GWDp; and(ii) ensure that any feedstock materials that are stored outside of the area described in Table 4 of the GWDP are stored and maintained in closed, water-tight containers; and(iii) to the extent that any such containers are observed to be leaking. such leaking containers will be placed into watertight over-pack containers. and any impacted soils will be removed and will be deposited into the Mill's active tailinss cell: and d) IlJ$aDenilg! 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,Iu$apgq$g! 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 gJ$4DqUlojl does not provide the required secondary containment required under Part I.d.3. e) of the GWDP, +UsaDgnilp! will, subject ro any specific requirements of the Executive Secretary as set forth in any notice, order, remediation plan or the equivalent, implement the following process: DraftDate: @,20CF{l0 Upon discovery, the Mill Manager or RSO will be notified immediately; {US+DenEe! will provide verbal notification to the Executive Secretary within 24 hours of discovery followed by a written notification within five days of discovery; and I{JSADenbq 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. 5.7. 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, Ius+Denilgg 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) ItJS+DenSq! 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 I{JSADgnison 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, I{JSADenlson 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 a) b) c) DraftDate: @,20CFd 1l b) uSADentson 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 discoveryrud gL-.To the extent stil 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 cJean up and other measures. DraftDate: @,2006d 12 I , 0CT-12-?OO7 76t@8 Fromi}NISON |'1INES usA DENEOJ)Jd lo: To:9188153344L Pasel!ttG Deniron Mlncs (U$A) Corp, 1050 17lh Strec[ Sultr 950 Donvcr, C0 fl)il6E USA Tel :3fil 62$798 Frx i 309 88Ml2s www.dcnlsonmines.cotn MINES Facsimile Transmittal Mr. Jonathan P. Cook, Division of Hadiation Control Fax No.: 801-530-4097 October 12,2007 Companv: Utah Division of Fladiation Control White Mesa Mill Ptease see attached lettor dated October lZ, Z0Ol N .. Ocr-1?-?oo7 76:oa FromTISoN NINES usA ro:e18E1153-orL Pase:?t76 DENrsoJ)dC 0enison Mlnea (USA) Corp. 1050 17lh Etrcct, Suite 950 Donver, CO 80265 USA Tel : $08 62S7798 Fax :303 58$4125 www,donlaonmines.com MINES October 12,2007 VIA FACSIMILE AND US MAIL Jonathan P. Cook, P.E. Division ol Radiation Controt Utah Department of Environmantal Quality 168 North 1950 West Salt Lake Clty, Uf 84114-4850 Dear Mr. Cook: Re: April 7' 2006 Draft Contlngency PlanlorDenison ltrlnss (USA) Corp. ("Deni8on") Whlte Mesa Mill,aa Required Under Part l.H.l6 ol state of Utah GWDP No" UGW3z6o04;- Request for hevision and Re-$ubmlttal-Your Letter of $eptember E,Z00l Raference is made to your letter of September 5,2007 regarding the draft Contingency plan for Dsnison,sWhito Mesa Mill (the "Mlll"), ln your letter you set out sevdral co-ncerrs relating to the dralr Contingency elanthat you ask us to addross, and you request that we revise and re-subrnit the Flarr. Enclosed with this letter is a revised draft Contingency Plan lor the Mill, marked to indicate changes over thoApril 7, 2006 version. we respond to your questions as follows (your questions or comments are repeated below in italics, followed byour response): / 1. The ownership of the Mill has changed since Apil 7, 2006. Please revise the Conttngency plen{ accordingly- Tho ownership of the Mill has not changed; however, the name ol the operator of the Mill was changed inDecember 2006 from lnternational Uranium (USA) Corporation to Denison lainei tuSnj corp. Tniichange hasbeen incorporated into the attached revised draft plan. 2. Now that the Ceil 4A retrofit has_beon approved, both DMT and BAT standards apply to rha Mil site.Ploase revise tho Contingency plan accordingly. The Mill's DMT Plan is currently in the process of being revised to includo Cell +A. lt is therefore premature atthis time to revise the Contingency Plan to lncorporate DMT for Cell 44. Once the rivised DMT plan has beenapproved by the Exec_utive Secretary, Denison will revise tho Contingency Plan accoraingly and will submit therevised Contingency Plan to the Executive Secretary for approval, 3. You note that tho Contitlggncy Plan provides, in Sectiort 3.9(d) on page i, that "ff it is conctuded that thecontamination is the result of current or past activities at the Mill, \USA wiil evaluate potentiel remedialactions, including actiotts to restoro and mahlain groundvvater qualtty to ,ntiiii ini[permit limits wilt not be \ 0CT-1P-?O@7 76zO8 FromSISoN i'1INES usn To:9180153=OrL Pase:3216 exceeded at the compliance monitoring point and thet DMT witt b6 reestablished, as wel as ections thatmeraly ellow naturalattenuation to operete and actions that invotve epptyiig ioiAttniit ConcentrationLimits ('ACLs')- You ask that we provido a detaited tist of actions in thi boitirigeii 1* section 3'4 of the Plan addre-sses the types of actions that will be taken (1.e., the submittal ot a GroundwaterRernediation Plan)' section 3.4 describes, the types ol actions rhet wil ti" tixJn,ln!ffi;irerms. As tho typeof remediation will depend^on the specific circumitances, it is not fossiUte 16 il;y;i;;;ipecific than asalready set out in Section 3.4. ln order to botter 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 Bemediation Plan, as desbriUea in Section S.+ beiow. - 4. You note that the contingency Plan provtde\,-,i1.1seg1jon 4 on page 5, that ,,part t.c,e of the GWDp providesthat discharge of other compounds into thy !.litl's taitings cetti, sich as paints, used oll, antifreeze,pesticides, or any other contamlnent not defined as t ie.(z) material is b*niiitii;; iil'rs* how thts affectsthe "current practice of disposing of paint ehips . . . tn thi iaitittgs cellsi, Tho Mill may dispose ol dried paint chips or llakes on equipment or painr chips that may result from sandblasting or slmilar aciivitlas. These are wastes generated in conneciion wittr'tne .ilring'process and aretherefore 116.(2) byproduct material. This cliffeisJrom disposalot pure unused, unconitirninated paint, that isnot a waste, into the tailings ce-lls, which rnay not ue r re.(i) uyproituct material and, il not, would not be able tobe directly disposed of in the Mill,s tailings cells, 5' Section 13-.!r) on pege 6. You have asked us to change the words "inctudlttg withour timitation obtalningapproval of" to "including obtaining approval of We have made the requested change. 6. With respect to the requtrernenls set out in.sections.5.l (a) tlrough 5.1(f) of the ptan, you have asked if Miiloperations wiil be hafted until the wastewater pool elevaiion nas droppdd back oetii ini minimumfreeboard level. section 5'1(c) of the Plan provid.es that upon disoovery, Mill personnel will cease to ctischarge any turthertailings to the subJect tailings cell, until such tlme.as aieqrate lreeboard capacity e*isis ln if,e suhject tailingscell for the disposal of the.tailings. Section 5.1 (d) providbs that i; iG extent reisonabty practicabte, withoutcausing a violation of the freeboard limn in any itirir tailings celt, Mi[ personnet wi1 prorirbty pr*p ftuids fromthe subject tailings oellto another tailings cell untilsuch time as ine tr;eboard limft tiiirr"-suoiect taitings coll isin compllance, lf there ls no room available in another oell, without violating the freeboard limit of such cell, then, as soon asreasonably practicable, Mill personnel will cease-to dischar[e any further tailings to anv ceii untit sucn lime asadoquate freeboard capacily exists in all cells. we have adided t'he loilowing ringualjto secrion 5.1 (d): lf there is no room available in another cell, without violating the freeboard limit of suehoJher tailing$ cell, then, as soon as reasonably practicable,'Mi[ personnelwiitcease todischarge any further tallings !o any tailings cili until such time ui aoequ*t" treetaracapacity exists ln all tailings cells. OENISOJ)J/ MINES ocT-L?-?oo1 L6:@9 r.omflsoN NINES usA To:918@153=OrL Pasez4t!6 oEN'soJ)/l 7. Section 5.4, page 9: Add paragraphs similar to i.l.d), S.t.e), and S.t.f) The Permit already specifically addresses what must be done if the freeboard limit in Floberts pond isexceeded- Speoifically, part 1.D.3,(c) of the Permit statos that in the event that the wastewater elovationexceeds the maximum level, Denison shall remove the excess wastewater arrd place it into oontainmenl inTailings Cell 1 within 72 hours of discovery, Such a specilic provision does not exist to address exceedances of freeboard limits in the Miil,s tailings cells.That is why the procedures in Section 5.1 ({), (e) and (f) are not repeated in Secrion s.4. For example, giventhe specif ic w-ording of Part l-D.3 (c) of the Permit, there is no need'to repeat Secr,onr's.r io) ano (e) ol theConlingency Plan in Section 5.4 of the Contingency Plan. Similarly, part 1.D,3 ol the permit'contemptates thatthe freeboard limit in Roberts Pond may be exceeded temporarily irom time to time, anJ gives a 72-hourwindow. in which to get the solution levcls irr Roberts pond'downio tho rnaximum €levation beloro a violationcan be lssued under the Permit. Therefore, we do not betleve that it is nr""irarv io Erf;; a rool causeanalysis for exceedances of freeboard limits in Floberts Pond, as is requircd rol. "*..lo"nces of freeboard limitsin the tailings cells. Accordingty, we have not added paragraphs simltar to 5.1(d), (e) and (f) to section 5.4. 8- Sactrbn 5"5, page 9: what will be dona should it be dlscovered that feadstaa. containers are teaking? We have added the following as a new Section S.S (c)(iii): (iii) to the extent thet any such containers are observed to be leaking, such leakingcontainers will be placed into watertight over-pack containers, and arry im-pacted soils willbe rernoved and will be deposited intb the Mlli,s active tailings ce1; and 9. Section 5.8, page t l: Provide more details on what will be done upon discovery of a failure to compty withStarmwater Manegement and Spill Cantro! Roquirements, such ai method for iteu, ui We have add6d the foflowing as a new Saction 5_g(c): (c) To lhe extent still practicable et the. time _oJ discovery, Denison will manage any suchcontaminant spitl in accordance whh the Mitt's approvel Storm*rter Best 1i.*gtrn"nrPractices Plan- To the extent it is no longer practicable to so manage any suJh spitt.Denison will agree with the Executive Secretary on appropriate cle-an -ri inO otn"1.measures. lf you have any questions regarding lha foregoing, or require any lurther information, please contact theundersigned. Yours very truly, Bon F. Hochstein Harold R. Roberts Steven D. Landau David Turk Presideht, Regulatory Affairs and Counsel MINES , 0CT-12-?OA1 t6:@9 FromfNIsoN NINES usA To:9180153=OrL WHITE MESA URANIUM MILL CONTINGENCY PLAN As Requir.cd tlnder part I.H.16 of statc,f fltah Grou*dwatcr Discharge perulit No.uGW370004 Prepared by: (LJSA) Corp.eretien Denver CO 80265 @20n,F;Z Paee:5216 I Orat Date: t.dereH}t(]e1obelle,ZOfFII r 0CT-1a-?@07 t6zZ9 Fror'rfNISON NINES USA To:918E1153=OaL Pasel6tL6 Pasg No. 3 3 4 4 4 5 l. 6 6 6 7 7 7g 8II t0 l0l 11 TABLE Otr CONTENTS INTRODUCTION PTIRPOSE GROI"NDWATER CONTAMINATION Notific.ation Continuation of Acceleratcd Monitoring Submission of Plan anrl Timetable Groundwater: Rcrucdiation plan MILI, DISCHARGE VIOLATIONS - INCLI.]DING T.INAUTHORIZEI} DISCHARGE OR RELE,ASE OF PROHIBITI'I) CONTAMINANTS TO TIIE TAILING CELLIi4.1. Notifications4.2. Field Acrivities4.3. Requesr tbr Apprrrvals and/or Waivers 5. DMT VIOLATIONS5.1. Tailings (lcll waste.water pool Elevation Abovc the Maximurtr Elevations 5.2. Excess Hcarl in Tailings Cells 2 a,rl3 Slimcs Drain Systems5.3. Excess Elcvation For Tailings $olids5.4. Rohe(s Porrd Wustewater Elevation5.5. Feedstock Sroruge Area5.6. Mill Sitc Chcmical Reagenr Storagc 5.7 , Failure to Construct a$ per Appnrval5.8. Failurc to comply with stornrwatcr Managemenr arrcl spill control Requirerrrents l*arcU+lOctlgber_l0,ZO(h] 2 OCT-L?-?@91 15229 FToUNIS0N I'IINES USA To:9188153=OrL Pase:7t76 Thc State of tltnh has granted Cround Water Discharge Permit No. UGW370004 (the"CWI)P") tbr (USA) Cory,eretieR's("[JSADcttison's") White Mesa Uraniurl Mill (the'Mill"i, Thl CwDp specifics thccoflstnlctioll opc:ration, and monitoring rcquircments for all facilities at rhc Mill that have a potenlinl to dist:ltarge. pollutanls directly or irrrlirectly into grourrtlwatcr. 2. PURPOSE '!'his Contirrgen(iy Plan (the "Plan") provitles a detailed list of actions IUS,{Den[son wilttale tqlcgain c:ompliance with (iwDP linrits and Discharge Minimizarion -echnongy ("DMT") requircmcnts defined in Parts t.C zurd I.D of ttre-CWOp. Thc tirucly ,*".riio, of contingency and conective action.q out.lined in this Plan will plcrvirle gJSADgUiEqn with tJrc basis ttl exercise the Affir:nrativr: Ac:tion Defense proviiion irr Part t.CSJilof Ur.(iwl)P and thcreby avoid nonconrpliaucc stalus and potential euforccrnent actionl. Thc contingency ac:tions rcquirerl lrr rcgain compliancc with GWDp lirniLs and DMT rccluiremeuts detined irr parrs t.c and LD of the GwDp arc ds.scribed bclow. 3. GROT]NDWATER CONTAMINATION Sirtce there are mafly diftbrcril. po,ssible scenarios that crrultl potentially give rise t6grounrlwater contaminntion. arrd since thc developurr:nt and implemetrtaiion of arcmcdialion program will nor:ttritlly be specitic Lo each paflic:ulir sce[ario, this plan dousnot otrtliflc rr definitive rentediatiou program. Rather, this Plan clcscribes the sreps thatwill he I'trllowcd by fiJ$*Dqn|lsa in the event I+ISADeu,lrt! is found to be our tf courpliance with rcspect to nry r:onstituent in any nronitoririg well, pursuarrt to part I.C.2of thc GWDP. When the concentratiotl ol'any parameter in a complitnce monitoring well is gut of conrpliance, flJS+Dglriso! will. sub.ject to speciticJrcquirements of tiie.bxecutive WHI"I'U MI]SA TIRANIUM MILL CON'I'IN(}ENCY PLAN State of Utah (iroundwuter Dischargc permit No. UGW370004 I. INTRODUCTION I Part I.C-3.c) of the GWI)P provides that, in the evr:nt a crrrnpliance action is iuitiutcd agtinstrusAllenisqn tirr violatiou rtl'permit con<litir.rns relatirtg to bcit availatrle t.echnology o. bUt,ttl5ADenisort rnuy affirmatively defbnd aguinst that action by deruoustr.urirrg that ii has maae appropriatcnotiticrrtions, that rhe faihrc- wus not inteniional or causetl t y *ls+ttruorrs negligencc, thatHJ$ADsoisol has taken adequate fitca$urcs t(.) nleet pc.rnrir ionditioot lry timety mrnne, or lus suSmittedsn ldgqtrate plan and schedulc lirr meeting pcrmit conditions, and rhat the proviiions of UCA lg-S- lU7have rrol. been violatc<I. Draft Datc: Mnr*++0EEfbe[4, 20062 1 0CT-1?-?ZO7 I6=LO rnomiltsoN NINES usn To:9188153340T Pase:8216 7-L. Secretary AS tiet folth irr any notice, order, renrr-.diatiOn plan or thc equivalent, ilnplcmentthc l-ollowing process; 3.I . Notification HJS'AD9!Eon will notify thc Executive Secrchry of thr,.. oLlt uf c:ompliance .rratns wirhin24 hours after dctcction of that status followed by a writtcn notice within 5 days aftcrdetection, as rctluiretl under part I,G.4.a) of thcr GWDP. IUSADenison will continuc accelerRted sampliug tbr rhc parameter in that courpliarrcemonitoring wcll pur.tuant to Part I.C.1 of the GWI)P, unlcss the Executive Secretary clctermines that othet periodic sarnpling is appropriate, until thc Incrility is brought irrto couq:liiurc'rr, as required urrder Part I.G.4,b) r:f thl CWU| . If the accelerated morritoritrg tlerncrnstrates that the Mill is rrt) Irrnger out of compliarrcewil'h respect to a parontctu itt it well, then, with the wrirrcrr .,pproval of the Exeiitrtive Secretory, ruS,aDenfspn will r:case accelerated monitorfurg lui the parameter, aud nofurther steps witl he lirllowcd by rus.+Ircnuo! with rcspc-ct ro such parameter. 3.3. Submission of Pl:ur and Timetable lf the acceleratcd monitoriug confinns that the MiU is out ol'compliance with r:cspcct to aparamcter in a well, thcrr, within 30 days of such crrrrfirmatior, ruIi*Dgr.1lQ! *ri1preparc and suhnrit to tltc Executivc Secretary a plan end a time schedulc tc,r ,rsse$$rnenrof the sources, extcllt and potential dispelsiori ot'the contomination, anrl an cvaluation ofpotential remedial actiott to re$tore and nraintain grouncl water quality to ensurc t_httpermit li[rits will not bc cxceeded at the conrplizurco uronitoring point alcl that DMT willbe reestahlishccl, as requircd urtder part I.G.4.c) of the GWDP. -this plan will normallyinclude: a) b) c) 'I'he requirerrrent for l+Js+pexEqr ro preParc a dsrailed and conrprehcnsive operational hislory of the facility and surrounding areas which expltrres allactivities that nury have contrihuted to thc contamination; A rcquirerrrent for l+ls+h:iu to complcre an evaluation, which rnay includegeochcurical and hydrogeological analyscs, to determine whethcr or not thecoutaruirrtl'ion was caused by Mill activitics or wos causcrl hy natural forces oroffsitc r(tivities; If it i'r concludcd that the contanlinatiorr is the result of cutrcllt or past activitiesat thc Mill, ffs.*De+isoq will prepare a charactcrizirr.irn Rcport, which chararterizes the physical, chemic:ar, and radiological extent of the pgouncl warercortamination. This will rrormally include a desiriptiurr u[ any additional wcllsto bc used or installed to characterize *re plunre oo,i th. hydroleologic DraftDare: l+are*f+OctobrlO,ZOWT 4 OCf-t?-?A@7 L5:1"@ FTOr1INISON NINES USR Paee:9216 d) characteristit:s uf lhe affccted z.o[e. thc alralytical parameters to [rt: obtained, thcsarlrples of ground water to be tlken, and any othei'mcans t' nreasurc anclcharacterizc the affectcd grorrntl water nnd contaurinatiorr z,one; and If it is conclrrdecl that the contamination is thc rcsulr of current or past activities at the Mill' {JS'{Denison will cvaluate potcrrtial remedial actions, iuclurlilg actiotts I'o reslore and maintain gmunrlwrrtcr quality to ensure that pcrrnit tiiitswitl not bt: exsee6r6 ar (he compliance monitoringpoint and rhat DMr will bereestablishetl, as well as actions that rnerely allour-rratural attenuation to operatc and actions that involve npplyirrg lirr Alternate concentration Limits (..nil-s"). .3.4, GroundwatefRemetliationplan I1'the Executive Secretary clctcnrrines that ground watcr rcrne(liation is needed,fiJ$ADeqisau will subnrit a (jrorurd Water Renrediation Plirrr tu the Executire ,sucrcturywithin the time frame reque,stcd by the Executive secretary. The cround water Rernediation Plan will nornrully include: a) A description and schedule of how flJ$ADcuigqq will implenrent fl corrcctive action Progmnl that prcvents contaminants ti'om cxceedilg the ground warerprotecrion levels or ACLs at the compliancc morritoring pointlsl or othcrlocations apprtrvetl by the Executive Secretary, by removing the contamirunts.treating tlrem irr prace, or by other mcau. as approvcd by thi Exccur.ive Secretary; b) A_descriptiorr r.rf thc rcmediation morritoring progrum to denronstratc theef'fectivcncss r"r[ the plan; aud c) Descriptions ol'how corrcctive action will upply to cach soll.cc of the pollutiorr. I+l$ADgurs9tr will inrplement the Ground Walcr Remediarion plan in accorclance with sschedule to be suhrnittcd by IUSADErson and approved by the Executivr: srrrrtury.- 4. I{ILL DISCHARGE VIOLATIONS - INCLUDING TINAUTHORIZEDDISCHAR(;}] (.)R RELBASE OF PROIIIBITED CONTAMINANTS TO TIIETAILING CT;LLS Parl I'C'2' of the GWDP provides that only I I e.(2) by-prodrrct maruial uuthoriz.erl hy thcMill's state rrl'tltnh Radioactive Mater:ials License r.rt. ur-zfOt)47g (rhe..Radioactiirc Materials Licutse") shall be dischargcrl to or disposed of in rhe Mill's tailings cells. I trratt Date: $4areh*teqg!q_[Q, ZO_l ocT-t?-?@al L6:77 FTor1fNISON NINES USR To:9188153=OT Paset LEt1,5 Parl' t'C'3 of the GWDP Provides ttrat discharge of orher compounds into thc Mill'stailings cells, such as paints, used oil, antilieeie, pcsticides, or any oilrer contrgninant notdefinerl as I lc.(2) material i.s prohibitcd. , Itl'h"..Y!r]t ol'any- uuauthorized clisposal o[ crontaminant$ or wasrcrr (the ..Unarrthorizcrl I Muterials") to the Mill's tailings cclls, HSdDgqigon will, subject to any.specificret;uirements of the Exccrrl.ive Secretary * *.t f.nrLh in any notice, ordei rinrecliation planor the cquivalent, inrplument the following pro(rc$$: 4.1. Notificatiorrs a) Lllxn discover], the Mill Marrager or RSO will bc noLilierl immcdiately; ald I t l l+,fii'+D!Iurg! will provide ver:tral notification ro rhe t .xccrrrive Secretary wit6i^24 hours of discovery tbllowed by a writl,en notification withirr live days ofdi.ricrrvery. 4_2. Fictd Activitic.q a) flpon discovery, Mill personncl will immcdiately ccasr; pler(:ement ol:Unauthorizcd Materials inLo lhe Mill's tailings cclls; h) To thc extent rcasonahly plactic4ble and in a rnanncr t]rat c:an be accomplis]red safcly, Mill personrrel will attcmpt to scgregate thc Unaut"horized Materials 1romother tailirrgs uratcrials aud mark or record ihe location of the Unauthorizcd Materials in the tailingr cells, If it is not roasonably practicaSlc t6 safelysegregate the l.Jnattthorized Matcrial from othcr tuilings materiflls. Mill -personnel will nevertheless mzu'k or record the location ol'the Unauthorizecl Materials in thetailings cells; c) To thc extent rcasorrarbly practicahle aud in il manncr thirt can bc accornplisherlsafely, Millpersorurcl will attempt to renlovo rhe Unauthorizerl Materiaifrom thetailings cells; and d) IUSAD9d&! will tli.spose of the lJnnuthorized Material unrler applicable Stateand Federal regulatiorrs. 4.3. Request for,Aplrnrvals and/or Waivers If.it is not r€asonahly llratticuble to safely rcrtove Lhe Unauthorizecl Materials fiorrr thctailings cells, then ltt{i,4fuajEgg will: a) Subruit a written rcport to thc Executivc Secretary arralyzing the health, saf'eryand environllnjal imlrac!, if any, associated *iih ttre permanent disposal ol theUrrauthorizcd Material in the Mill't tailings ceilu I DraftDatc: Mar+h-3*eE!sbsl!!.ZO(}{ 6 i 0CT-1?-?@O7 1.6:Lt r".$NrsoN NINES usA To:91881153=OrT P ase l 1-lt 16 Apply to the ExccLrtive Secretary for any amcrdfircnts that may be requir.crl to the GWDP arrtl lhe Radioactive Materials Licensc to properly accommndatc thc perrmncnt tlisposal of the Uuauthoriz.erl Mnterial in the Mill's tailings ccll.s in aluamcr that is protective of hcalth, sal'ety and the envirounurt; antl Makc all applications requircd untler the United states Nuckritr Regulatory commiss ion' s ("NRC' s") Non- I I e.(2) Disposal ptrr icy, incruding ;*h""i thmitetie+ohtaining approval of the Depar.rrncnt of Energy as thelong rerm cusl.odian of thc Mill's tailings, in ordcr to obtain approval to pcrnranently disposc of the unauthorized Matcrial i, the Mill's tailings cells. DMT VIOLATIONS Pafi I.D.2 of the CWDP ptovidcs that luthorized operation and rrraximum disposal capacity fur cach r.rf the cxisting tniliugs cells shall nol exceed thc lcvels authorized by thc Radioactivc Mul.erials License nrrd that under no circum.stances shall rhe freeboarcl hc tcss than thrcc fct:t, a$ measured fronr thc top uf the flexible nrembrzurc Iiner (..fML',). Iu thc cvent that tailings cell wastewater pool elevation in urry tailings cell exceerls rhe tnaxiururn elevations mandatccl by Part 1.,D.2 of the (IWDP, uS+Dggison will, subjccr to any spccilit: requiremcnts of the Excr:utive Secretary as sct fbrth in any notice, or.clci, remediation plan or the equivalent, irrrplement thc ftrllowing prooosrr: a) Upon di.rcovery. thc Mill Manage.r or RSO will bo notified immediatcly; b) *+S*tlenison will provide verbal notification to the: Executive Secretary within 24 hours of discrrvery followed by a written notiflc:ation within tive days of discovery; t) Upon discovery, Mill personnel will ceasc to disc:harge any further tniling$ to thc sub.ject tailings cell, until suc:h time as adequatc frr:r:board capacity existjirr the sub.iect tailings ccll lirr the disposal of the taitings: d) To the extent reasonatrly practicable, without causing a violation of tht: lieeboardlimit in ary other tailings c'el[, Mill personncl will promptly purrrp t]uicls froru thc subiect tailings cell to another tailings cell until such time as-the ireeboanl Iimit for the .,lrhject trilings cell i.s irr compliance, If thEre is no room a ll- wi b) c) 5. 5^l Drall f)ate: Ma#eh3*Qg!9!g1p,z}(W 7 OCf-t?-?OA7 L6tlt Fromi}lISON NINES USR To:91881153-OrL P age : t?t L6 If it is llol, r€a$onably practicahle to puurp sulIir:ient solutions fiom the sub.iccttailings cell to another tailings cell. thcn thc solution levels in the srrtrject tailings cell will be reduced through natural evaporation; aud Itls+Derrl.IgE will pcrform a root cause anarysis of thc cxceedauce and will implemerrt new Proccdureii or changc cxisting pr:occclurcs to minimize the c6ancc of a tccurrence. 5.2. Excr;r.l Head in Tailings Cells 2 and 3 Slinres Drain Sy.qtems I Pur:t LD.-1.b)I) of the CwDP provirles that ItJS,ADenison shall at all rirnes nraintirin the average wastewater head in thc slirtrss tlrain access pipe in Cell?to bc as low as reasonably achicvahle, in acrtorditrr:c: wilh a DMT Monitoring Plan appruved by the Exccutive Secretary pur.quant to Part I.H.l3 ol'thE CWDP, and that toiCctt 3, tiris rc.quirr:rnenl shall apply only after: initiatirrn of de-watering operations, ln the event that the D,veragc wasLewater head in the sliures drairr access pipe tbr Cell 2 or,after initiation of de-waterirtg activities. Cell 3 exceeds the levcls spccifierl in the DM't'I Mr-,nitoring Plm, IUSADE,rison will, subject to any .rpecific requilcmcrrtu sf the Excctttive Secretaly as set f()rlh in any notice, order, remediatiorr plan or []re equivalenq implement the tollowing ptocssri: a) Upon discovery, tltc Mill Manager or RSO will [rc flotilicd imrnediately; b) Mill pcrstrnnel will promptly pump the exce.\s fluid into an active tailings cell, orother Bppropriatr c:ontainmcnt or evaporation lar:ility lpprovcd by the E-xccurive Sccretary; c) [f the cxceedunse is thc result of equipnrer:t failurc, Mill personnel will attempt to repair or rriplace the cquipment; I al tf the causrr ol the exceedance is not |ccrilicrl within 24 hours,ltJSADguilgI will provide verhal notifir:ation to the Execrrtive Scr:rctary wittrin the er*ui,rg2+ hours t'oll.wul hy a wrirten notificatitrt wit.hin five clays; and I .) [f not due to an itlcntil'ied eguipment failnrc, {US+Deu$g will perfor:n a ror;t causc analysi.s of tltc exceedancc and will implcrncrrt new proced[res or chalge existing prucetlures to nrininrizc the chunce of a rcc.unence. 5.3. Hxcgss Ek:vation Fot Tailings golids . Put I.D.3 b)2) of thc GWDP provides r.hat uporr slosure of any railings ccll,| +US*pqtill]! ,shall ensure that thc rnirximunr elcvation of theiailing$ wflstc solid.s doesnot excccd the top of the FM 1., e) I Draft Date: $4ar.elrltOqlgb-l8,Z}CFd g ACT-L?-"@@1 L6t77 Pase:. L3/ L6 In the evcnt that, upon (rlo$ure of any ta,ilings ccll, the maximum elevation ol'the tailings waste solids cxceecls the top of the pMI., IfJS4Dcnisou will, suhject to any $pecific requit'ctttcnts of the Executive Sccrclary as set forth in any not.ice, order, rimidiatiol plan or thc equivalenr, impleurent the Ibllowing proce$$: a) Upon discovery, thc Mill Munager or RSO will trc notified immediately; b) uSApenison will provide verbal notilicaLion to the Executivc Secretary within 24 hours of discovery f'ollowed by a written notification within livc days of discovt:ry; c) Tr: the extcnt reasonallly practicable, without cau.sing a violatiorr of the tr.eehparcl lirnit in any other tailings ccll, Mill personnel will prornptly remove tuilings solids liom the subject. tnilirrgs r:cll to anothor tailings ccll, or other locatidn apptovcd by lhe Uxccutive Sccrc.tary, uutil such lime as thc lrraximum elevatiou trl'lhe tailings woste solid$ in the subject tailing.s cell rlrrcs not exceed the top of the FML; and d) ruSADe.nisou will pcrtorut a root cau.se anatysis of the exceedance nrrcl will implenrent new prttcedurcs or change cxisting proc:cdures to minimiz.e thc chanceof a rccuneuce. 5.4. Ruberts Pond Wastewatcr Elevation Part [.D.3 c) of the GWDP provide.r that the Pernrit.tee shall operute Roberts ponrl so as toprovide a minimunr 2'foot Iieeboard at all timcs uul Lhat undir no circurrrrt.nces shall tlrc water levcl in Roberls Pond excecd an elevatiort ol 5,6T4feet ahove rncan sea lcvel. In the event thst the wuslcwatcr elevation exceecls this rnaxinrum levet, gJSADEut$g! shall remove the exccss wzlritewatcr and placc it inlo containrnent ilt Tailings Ccll Iwithin 72 hours of discovcry, as specilied in part I.D.3 c) of the (iwDp. In the cvcnt that, l{JsADg:jsoE lails to so remove any such excess warrewfltc.r,IUS+Deniso! will, suttjcct. lo any specific requirements of the Execurive Secrctary as settbrth in ilny notice, ordcr, rcmediation plan or thei equivalcnt, iffiplelncnt the following pfrx--o.\s: a) Upou discovery, the Mill Manager or RSO will be norified inrmcdiately; and b) l+lS+Dg!r!so! will provide verl'rRl flotilication to the Executive Secretary withig 24 hour's of discovcry followed hy a writron notitication arrcl propgsed clnectivc actions within livc days of discovery. 5.5. Feedstock StoraE'e AreJ FToTUNIS0N NINES usA To:9186153=rL Drafi Dat.e: Msr€h3+Qgqbq t0,20W g ocT-L?-?a@7 15:1e FTorUNIS0N NINES USR To:9180153=OrT P ase z 14t 1.6 Part I.D.3- d) of ttrc GWDP provides tlrot op,cu-irir or bulk storage of all fecdsrock nratcrials at. the Mill faciliff awaiting Mill proc.cssing shall bc limited to thc rllstem porti(rr of l"he Mill site ilea dcscriherl in Table 4 of the GWDP. ancl that storage of I'eedstock matcrials at thc thcility outside that area shall br.. perlbrmed and r:ralirtai'erl only in closcd, water-tight cuntuinem. In the evcllt [hat., slorage of any feedstock at lhc Mill is not in compliirnce with the reqrriremcnts specified in Parr I.r).3. d) ol'the cwDp, nJs,{pclrltrt will. subject to any specific rcquircutents of the Executivc Sccrelary as set fonh in-ny notice, ord'er,lemediation plan or the cquivalent, irnplcrment ttre fbllowing proccss: a) upon discovery, rhc Mill Manager or RSO will he notified immediarely; b) I{JSADenisoll will provitle verbal notificatior to the Executivc Secrerar:y wirhin 24 hours of discovery followed by a written notiticarion wittrin five dayi of discovery; c) Mill personnel will: (i) lllove ilny opcn-air or bulk stored f'eedstoc:k nraterials to rhe portiou of theMill sito area described in'l'abtc 4 of the CWDp:end(ii) ensll.tc tltat any feedstock rnatcrials that are stored outsirlc of the area descritrcd in Table 4 of the (iwDP aro stored and nraintafuicd in r:losed, wate r-tight containers ; anrl d) +tJ$hDcilirigg will perl'ornr a toot cause analysis of the non-compliant activity aDd will irnplemeut new proccdurcs or change exi.rting proc"duris to minimizc the charrcc of a recurrcnce. 5.6. Iai[_Srtc Ctremicat neag Part I'D.3. e) of tlrc GWDP provides that for all c:hernical rcagents storcrj at existing str'rrage facilities, flJS+pglite! shall provide sccondury containnrerrt to coptur" *Icontaiu all volurtre.r of reagerrt(s) that nright bc rclcased at any irrdividual *iur,rg, ur"o, and that for any new construction of rcugont storflge facilitics, ilrc secondary cJntainnenl and corrtrol shall prevent any contflrrt ol'the spilled reagerrt with the glound .surfacc. ln the evenl lhat lu$ADenison does not orr"rviile thc reqrrirecl scr:ondauy conlainmentrequired unrler Part I.aJIl or'thc GWDir, rus+uenis;rr will. subiccr to any specific reqrriremcttts of the Executive Sccrctary as set fortlr in any nolic:e, order, remcdiatirrn plan or the equivirlent, implenrent thc lbllowing procc:ts: tohel Draft Date; *qareha+.Octoberp 20062 l0 ocT-l?-?aa7 76=7?Paee: 15215 Upon rliscovcry, lhe Mill Manager or Rtjo will be notified immediately: IUS+DenisoE will provide vcrhal notilication to the Executivc Secretary withiu 24 hours of discovery followcd by a writtcn notification within live dayi of discovery; and Ius,tpgttit!! will promptly renrediate any spillerJ rc-agcnr resulting fionr thc failure to provide the rcquired seconclary cr;nt"ainmcnt under palt l.d.3.e) of the GWDP, try removal of the contatrtinated soil and disposal in the active tailings cell. 5.7. Failute to Construct a.s pcr Apprtrval Part I.D.4 r.rf the CWDP pxrvidcs tlurt any construction, nroditication, or operation of ncw waste or wirstuwater disposal, treflImcrrt, or $torage facilitie.,r shall rcquire submittal of crrgincering design plans aud spccil"icatiorx, and prior Execut.ive Scci.ctary review and approval, and that a Crlnstructiorr Pormit may be issued. In thc t:vcnl. Lhat, any new wastc or wastewater disposal, treatmrrut, or $torage facilitics are ctul$tructed at the Mill lacility without obtaining prior Executive. Secretary review irrrd approval, or any such facilities irre not con$uucted in accorrlance with the provisirrns of any applicable constlrcti,on Pcnrri[, lus+oenisog will, subject to any specific rcqttircrnenls of thc Executivc Sccrotury as set f'onlr in any notice, order, remecliation plan or thc cquivalent, implemerrt thc following process: a) Upon discovuy, the Mill Manager or RSO will be norified iguucrJiarcly; and b) tu{i'{Dgd!a! will provide verbal notification to rhe Executive Secretary wirhin 24 hours of discr.rvcry followed by a written notification and proposed clnccrive acrions within live days of discovery. Purt I'D.8 of the OWDP provides that ru$,{Dcnisol will manage all contacr and non- c:ontact stormwilter aud conl.r'ol contaminant spills ar the Mill facility in accortlance with an upproved Stornrwatcr Bcst Munagcmerlt Practiccs Plan, pursuant to part I.H. l7 of the GWDP. In the evcnt that any colrtact or non-coutact stormwilter or corttamiuant spills are, not mnnaged in accordancc with the Mill's ap1:rovcd Stonnwater Best Management practices Plan, IUSADenj$g4 will, subject to any specitit: requirements of the Exccutive Secretary as set fofih in any noticc, otder, remediation pltn or the equivalerrt, iurplcrnent thefollowiug proccs*i: a) Upon discovery, the Mill Managur or RSO will he notiticd irnmediately;and FToUNISON NINES USA To:91881153=OL a) I tl c) 5.8, I nraft Dute: ]dareF]leq!q!g{!,20062 lI ocr-t?-?@D7 t6=L?FronSlISoN NINES usn To:918015334491o Paee: 16215 b) lt'l$'{Dfu will provide verhal notitication to the Exccutive Sjecrctary within 24 hours of discovcry firlltrwetl hy a writteu notification arrd proposcd cgrrective actions within five days o['tlisr:overy; tgg! I Draft Date: tv{trch.3tOctobcl_10,20(h7 tz Draft Contingency Plan for White Mesa Uranium Mill, as-Reqgile.d tlnder Frrti.X.te ot-Stat6 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' 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 841144850 cc: Ron F. Hochstein Harold R. Roberts David Turk ,rrr*trol uRANruM (usA) coRpoRAr Nn@ info@intluranium.com www.intluranium.com oOI TJC Tel:303 6287798 Fax: 303 389 4125 1050 Seventeenth St., Suite 950 Denver, Colorado, USA 80255 ffi,"n'* 'ruh Vice Presidbnt and GeneralCounsel WHITE MESA URAI\-IT]M MILL CONTINGENCY PLAI\ As Required Under Part I.H.16 of State of Utah Groundwater Discharge Permit No.UGW370004 Prepared by: International Uranium (USA) Corporation 1050 17th Sfieet, Suite 950 Denver CO 80265 March 31,2006 Draft Date: March 31,2006 Pase No. 3 J 4 4 4 5 1. 6 6 6 7 7 7 8 9 9 l0 10ll TABLE OF'CONTENTS INTRODUCTION PURPOSE GROTJhIDWATER C ONTAMINATION Notification Continuation of Accelerated Monitoring Submission of Plan and Timetable Groundwater Remediation Plan 4. MILL DISCHARGE VIOLATIONS - INCLUDING UNA,UTHORIZED DISCHARGE OR RELEASE OF PROHIBITED CONTAMINA}ITS 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 Draft Date: March 31,2006 .l,ll lrl:'l;., WIIITE MESA URANIT]M MILL CONTINGENCY PLAN State of Utah Groundwater Discharge Permit No. UGW370004 1. INTRODUCTION The State of Utah has granted Ground Water 70004 (the "GWDP")ite Mesa Uranium Mi (the "Mill"). The GWDP specifies the consfuction, operation, and poll PURPOSE This Contingency Plan (the "Plan") provides a detailed list of actions IUSA 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 ruSA 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 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 outline a definitive event IUSA is found to be out of to Part I.G.2 of the GWDP. When the concentration of anyparameter in a compliance monitoring well is out of compliance, IUSA will, subject to specific requirements of the Executive Secretary as set forth in any nbtice, 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 affrrmatively 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 rnnner or has submitted an adequate plan and schedule for meeting permit conditions, and that the provisions ofUCA 19-5-107 have not been violated. wil iteos that with the Draft Date: March 31,2006 3.1. 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. vuol ,1r'r " a /tebra/q{" Ynan?3.2. IUSA will the parameter in that compliance monitoring well pursuant to Part I.G.l of the GWDP, unless the Executive Secretary determines that other periodic sampling is appropriate, until the facility is bpought 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 pdtential 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: a) 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, ruSA will prepare a Characteization 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 characterize the plume and the hydrogeologic characteristics of the affected zone, the analytical parameters to be obtained, the samples of ground b) c) Draft Date: March 31,2006 water to be taken, and any other means to measure and characteize the affected ground water and contarnination zone; and d) If it is concluded that the contamination is the result of current or past activitiesr./ at the Mi[, ruSA will evaluate potential remedial actions, including actions to restore and maintain groundwater quality to ensure ttrat 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 applylng for Alternate Concentration Limits ("ACLs"). 3.4. Groundwater Remediation Plan will submit a Ground Water within the time b The Ground Water will n,fiitt't ,,":rib (r.+t.tu) 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 poin(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; A description of the remediation monitoring program to demonstrate the effectiveness of the plan; and Descriptions of how corrective action will apply to each source of the pollution. ,r# ent the Ground Water Remediation Plan in accordance with a schedUtS: IUSA and ecutive 4. MILL DISCHARGE VIOLATIONS - INCLI]DING UNAUTHORIZEI) DISCHARGE OR RELEASE OF PROHIBITED CONTAMINAI\TS TO THE TAILING CELLS Partl.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 l}Urtrrials License") s,l1all be discharged to or disposed of in the Mill's tailings cells. a) b) c) 1I*<- W$r Tdto*IT,:::l::: 9:i_: yr: i9: .4.- tailings cells, such as paints,tused oil, antifregze, pesticides, or any other contaminant not-\.P --l--=--------- .;-:.--t - - 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 ,1t,'*oYYfu'Y 'i:;i:,yfr ct {(e ile 0) ,t wrr,r 1p{'at ' If the Executive Secretary determines that ground water remediation is needed, ruSA 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 immediatelyi 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."ur. 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) 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- 1 1 e.(2) Disposal Policy, including:ritlror$.. Draft Date: March 31,2006 *'6rfu)"-1,,oit N"e' lhe Department of Energy as the long term 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 Partl.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 g!$p3e{bY the Ridioactive Materials License and that under no circumstances shall @-freebgg/be less than three feet, as measured from the top of the flexible membrane lineiflFMf'r , a^rl L,'t r,,qt tr -'1,)' l"'' " l(/' ) In the event that tailings cell wastewater pool elevation in an{tailings cell exceeds the maximum elevations mandated by Part I.D:2 of the GWDP{ruSA will, subject to any specific requirements of the Executive Secretary as set forth in any notice, order, remediation plan or the equivalent, implement the following process: a) Upon discovery, the Mill Manager or RSO will be notified immediately; IUSA will provide verbal notification to the Executive Secretary within 24 hours of discovery followed by a written notification within five days of discovery; Upon discovery, Mill persorurel will cease to discharge any further tailings to the subject tailings cell, until such time as adequate freeboard capacity exists in the subject tailings cell for the disposal of the tailings; To the extent reasonably practicable, without causing a violation of the freeboard limit in any other tailings cell, Mill personnel w"tltJ:gngpilJtpunp$uids 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 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 natglal.evaporati,on; and 'i,#n>l ffi*rffi|'*n perrorm a root '"**"?rfrffi#dance and will implementl .Y**t **d new procedures or change existing procedures to minimize the chance of a i* ( v) f?'ii'i"Ti; y qa hv * tt p tto ( t'<d! 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 tobe as low as reasonably achievable, in accordance with a DMT Monitoring Plan approved by the Executive e) Draft Date: March 31,2006 Secretary pursuant to Part I.H.l3 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, t 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 ..lFIoS Secretary as set forth in any notice, order, remediation plan or the equivalent, implement ^*, tt'Ori" ;the followins process' q.[\: ,t{ I a) Upon discovery, the Mill Manager or RSO will be notified immediately; ,l*I[ L/'" #fi- I a) Upon discovery, the Mill Manager or RSO will be notified immediately; t1-*" Oi; il'*"ry%5nu','i1l,T::ffii[':'"'#il*'J#*H::;ffi'#ini'#ff:l;1H]t'.:!iJ,1;l' .*' c :*'i:,,:::;*::::*"_:ffi",MH to repair or replace the equipment; {,f7 1 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 recurrence. 5.3. Excess Elevation For Tailines 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 processl 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 yill promptly remo s 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 l of the tailings waste solids in the subject tailings cell does not exceed the top of the FML; andiltu,dI- IUSA will perform a root cause analysis of the exceedance and new procedures or change existing procedures to minimize the reculTence. will implement chance ofa 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 I 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 ,. ,-.-, o,,,lP.i,t "{1ofdiscoveryfbllowedbyawrittennotification\\'i,N['e69U^ within nve days ordiscovery - ;i/Clj;r;;,- /;#-;'"'i s t,Ju,' r, * f ' 5.5. Feedstock Storase 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, ruSA will, subject to any specific requirements of the Executive Secretary as set forth in any notice, order, remediation plan or the equivalbnt, 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: It.Arc t g) w1S 9Draft Date: March 31,2006 (D 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(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 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 Reaeent Storase 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, ruSA 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; and c) IUSA 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. 5.7. 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, 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 t0 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 Compllr with Stormwater Manaeement and Spill Control Reouirements part I.D.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, purquant to Part I.H.l7 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. Draft Date: March 31,2006 1l