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Home My WebLink AboutDRC-2010-004981 - 0901a068801c2c03DENISO MINES 2010-004981 Oenlson Mines (USA) Corp. 10S017tti Street, Suits 9S0 Denver, CO 80285 USA Tel:303 62a-7798 Fax: 303 38M125 www.denisonniinss.com September 10, 2010 VIA E-MAIL AND OVERNIGHT DELIVERY Rusty Lundberg Utah Department of Environmental Quality 195 North 1950 West P.O. Box 144810 Salt Lake City, UT 84114-4820 ov^-'\ '3^^ -.-^ a - Re: State of Utah Radioactive Materials License ("RML) UT1900479 Response to Utah Department of Environmental Quality ("UDEQ") Notice of Proposed Imposition of Civil Penalty August 5, 2010 Dear Mr. Lundberg: This letter responds to UDEQ's Notice of Proposed Imposition of Civil Penalty August 5, 2010 regarding findings resulting from a July 20 and 21, 2010 inspection of Denison Mines (USA) Corp's ("Denison's") White Mesa Mill (the "Mill"). The sections and numbering of this letter follow that of UDEQ's August 5, 2010 letter. Each violation identified by UDEQ is shown in italics, below, followed by Denison's response. /. 49 CFR 172.203(d) states: 'The description for a shipment of a Class 7 (radioactive) material must include the following additional entries: 49 CFR 172.203(d)(1) states: "The name of each radionuclide in the Class 7 (radioactive) material that is listed in § 173.435 of this subchapter. For mixtures of radionuclides, the radionuclides i-equired to be shown must be determined in accordance with § 173.433(g) of this subchapter," Contrary to the above, the Licensee failed to record the radionuclides ofthe UsOs (Uranium yellowcake) on multiple shipping papers dated from February 9, 2010 to July 16, 2010. 49 CFR 172.203 (d)(2) states: "A description ofthe physical and chemical form of the material, if the material is not in special form (generic chemical description is acceptable for chemical form). Contrary to the above, the Licensee recorded the chemical form but failed to record the physical form (e.g. solid, liquid, gas) ofthe UsOa (Uranium yellowcake) on multiple shipping papers dated from February 9, 2010 to July 16, 2010. 49 CFR 172.203(d)(3) states: "The activity contained in each package ofthe shipment in terms of the appropriate SI units (e,g,, Becquerels (Bq), Terabecquerels (TBq), etc.). The activity may also be stated in appropriate customary units (Curies (Ci), milliCuries (mCi), microCuries (uCi), Letter to Mr. Rusty Lundberg September 10, 2010 Page 2 efc.; in parentheses following the SI units ..." Contrary to the above, the Licensee failed to record the radiological activity ofthe UsOs (Uranium yellowcake) on multiple shipping papers dated from February 9, 2010 to July 16,2010. a) Root Cause of the Noncompliance Mill environmental personnel were insufficiently trained regarding the requirements of 40 CFR 172.203(d)(1), (2), and (3) - specifically relating to the requirements that the Shipper's Paper must include information on radionuclides, physical form, chemical form, and activity of the contents of each package. Environmental personnel mistakenly assumed that the term "uranium oxide," which has historically been used since the Mill's inception, was sufficiently descriptive of physical, chemical and radionuclide content. In addition, the Shipper's Paper form did not include a location to record activity levels. b) Steps That Have Been Taken to Correct the Violation The following steps have been taken to correct the violation: Mill environmental staff have been re-trained, specifically with respect to the DOT requirement in 40 CFR 172.203, that the Shipper's Paper must have enough information to address each ofthe parameters: radionuclides, physical form, chemical form, and activity. As of August 2, 2010, the Shipper's Papers have been modified to state that the contents are "drums of natural uranium (Unat) in the form of UaOs powder." Per our discussion with Mr. Ryan Johnson on August 12, 2010, we understand that this designation is acceptable for the following reasons: • The term "natural uranium (Unat)" indicates the presence of the distribution of uranium radionuclides (U""*, U^^^, and U^^®) specific to natural uranium and sufficiently describes the radionuclide content to comply with 40 CFR 172.203(d)(1), • The term "UaOa" sufficiently defines the chemical form (triuranium octoxide) to comply with 40 CFR 172.203(d)(2), and • The description "in the form of yellowcake powder" sufficiently defines the physical form (powder) to comply with 40 CFR 172.203(d)(2). In addition, the Shipper's Paper form has been modified to include a space requiring the recording of the activity. Mill environmental staff have also been re-trained, specifically with respect to the DOT requirement in 40 CFR 172.203(d)(3), that activity must be recorded at this location on every form. c) Date When Compliance Was or Will be regained Compliance was regained on August 2, 2010 when use ofthe new Shipper's Paper form, containing all the required information described above, was put into place. d) Steps Taken to Prevent Reoccurrence of the Noncompliance Mill staff involved in preparing the Shipper' Papers have been retrained to understand that on|y the updated Shipper's Paper form, instituted on August 2, 2010 fully complies with the requirements of 40 CFR 172.203(d). The previously used template for the Shipper's Paper form has been destroyed. The training clarifies that only the updated form may be used. DENISO MINES Letter to Mr. Rusty Lundberg September 10, 2010 Page 3 2. 49 CFR 172.203(d)(9) states: "For a shipment required by this subchapter to be consigned as exclusive use: (i) An indication that the shipment is consigned as exclusive use; or (ii) lfall the descriptions on the shipping paper are consigned as exclusive use, then the statement "Exclusive Use Shipment" may be entered only once on the shipping paper in a clearly visible location." Contrary to the above, the Licensee did not indicate that the U3O3 (Uranium Yellowcake) shipments are "Exclusive Use" on multiple shipping papers dated from February 9, 2010 to July 16, 2010. e) Root Cause of the Noncompliance Mill environmental personnel were insufficiently trained regarding the requirements of 40 CFR 172.203(d)(9). In addition, the Shipper's Paper form did not include a specific section or entry for the statement "Exclusive Use". f) Steps That Have Been Taken to Correct the Violation The following steps have been taken to correct the violation: Mill environmental staff has been re-trained, specifically with respect to the DOT requirement in 40 CFR 172.203(d)(9), that each Shipper's Paper must include the statement "Exclusive Use.". As of August 2, 2010, the Shipper's Papers have been modified to include a section for the entry "Exclusive Use." g) Date When Compliance Was or Will be regained Compliance was regained on August 2, 2010 when use of the new Shipper's Paper, containing the entry "Exclusive Use," was put into place. h) Steps Taken to Prevent Reoccurrence of the Noncompliance Mill staff involved in preparing the Shipper' Papers have been retrained to understand that only the updated Shipper's Paper form, instituted on August 2, 2010 fully complies with the requirements of 40 CFR 172.203(d)(9). The previously used template for the Shipper's Paper form has been destroyed. The training clarifies that only the updated form may be used. Denison has also enclosed with this letter a check for $1,500.00 in payment of the civil penalty imposed in UDEQ's August 5, 2010 letter. Please contact the undersigned if you have any questions or require any further information. DENISO MINES Letter to Mr. Rusty Lundberg September 10, 2010 Page 4 Yours very truly, DENISON MINES (USA) CORP. Jo Ann Tischler Director, Compliance and Permitting cc: David C. Frydenlund Ron F. Hochstein Harold R. Roberts David E. Turk K. Weinel Central files DENISON MINES (USA> CORP. 47284 Vendor ID ^^ayment Number^, »;; Cheque bate: DocumeritNuiniMr • - UTA005 State of Utah 00000000000020306 9/10/2010 0047284 Our vbuclwr Numtier vi}. • . Date • i , : ^ Am<>uirit . AtnQuntJPaiti 3- i :4i. slMscount UT1900479PENALTY 6/5/2010 $1,500.00 $1,600.00 $0.00 $1,500.00 /lyr/ Terlri/iy ^Bp • . Hi.. •3ior .1 ' $1,500.00 $1,500.00 $0.00 $1,500.00 DENISO MINES