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Home My WebLink AboutDRC-2012-001269 - 0901a068802bc90el^9(< ^ State of Utah GARYR HERBERT Governor GREG BELL Lieutenant Governor Department of Environmental Quality Amanda Smith Executive Director DIVISION OF RADIATION CONTROL Rusty Lundberg Director /FTLTN DRC-2012-001269 March 7 2012 CERTIFIED MAIL (Return Receipt Requested) Mr David C Frydenlund Vice President and General Counsel Denison Mines (USA) Corp (DUSA) 1050 Seventeenth St Suite 950 Denver Colorado 80265 Subject DRC 2011 Storm Water Inspection at the White Mesa Uranium Mill Notice of Violation and Compliance Order, Docket No UGW12 01 DearMr Frydenlund The enclosed Notice of ViolaUon and Compliance Order ( NOV/CO ) is based on the Utah Division of Radiation Control (DRC) findings from the 2011 DRC Storm Water Inspecnon at the White Mesa Uranium Mill facility near Blanding Utah The inspection took place on October 18 2011 Please give this order your immediate attention A wntten response is required within 30 calendar days after receipt of this NOTICE This order is fully enforceable unless appealed in writing within 30 calendar days, as described in the "Notice" section of this NOV/CO Any response or written answer to this NOV/CO should be addressed to Rusty Lundberg, Co Executive Secretary, Utah Water Quality Board, 195 North 1950 West, P O Box 144850, Salt Lake City, Utah 84114 4850 UTAH WATER QUALITY BOARD Rusty Lundberg Co Executive Secretary Enclosure Notice of Violation and Order Docket No UGW12 01 F\DUSA\Storm Water Management\2011 hispection\NOV UGWI2 01\UGW12 01 Transmittal Letter docx 195 North 1950 West Salt Uke City UT Mailing Address POBox 144850 Salt Uke City UT 84114 4850 Telephone (801) 536 4250 Fax (801) 533 4097 TDD (801)536 4414 d q t I g Pr t d o 100% ycl d pape UTAH WATER QUALITY BOARD IN THE MATTER OF DOCKET NUMBER UGW12 01 Denison Mines (USA) Corp NOTICE OF VIOLATION AND 1050 SEVENTEENTH ST SUITE 950 COMPLIANCE ORDER DENVER, COLORADO, 80265 „ A STATUTORY AUTHORITY This NOTICE OF VIOLATION and COMPLIANCE ORDER (NOV/CO) is issued to Denison Mines (USA) Corporation (hereinafter DUSA) facility by the UTAH WATER QUALITY BOARD (hereinafter the BOARD) under the Utah Water Quality Act Utah Code Ann §§ 19 5 101 to 19 5 123 (the ACT) including sections 19 5 104 19 5 106 19 5 Ul and 19 5 115 This NOV/CO is also issued in accordance with the Utah Administrative Procedures Act Utah Code Ann §§ 63G4 101 to 63G 4 601 The BOARD has authonzed the Co Executive Secretary of the Board (Co Executive Secretary) to issue such NOTICES AND ORDERS m accordance with §19 5 106(8) ofthe Utah Code B APPLICABLE STATUTORY AND REGULATORY PROVISIONS 1 DUSA was issued Ground Water Quality Discharge Permit No UGW370004 (hereinafter Permit) on March 8 2005 Said Permit was modified by the Co Executive Secretary on March 17 2008 January 20 2010 June 17 2010 and February 15 2011 and was last modified on July 14 2011 2 I D 10 of the Permit requires that Stormwater Management and Spill Control Requirements the Permittee will manage all contact and non contact stormwater and control contaminant spills at the facility in accordance with the currently approved Stormwater Best Management Practices Plan Said plan includes the following minimum provisions a) Protect groundwater quality or other waters of the state by design construction and/or active operational measures that meet the requirements of the Ground Water Quality Protection Regulations found in UAC RSI 7 6 6 3(G) and R3I7 6 6 4(C) b) Prevent control and contam spills of stored reagents or other chemicals at the mill site c) Cleanup spills of stored reagents or other chemicals at the mill site immediately upon discovery and d) Report reagent spills or other releases at the mill site to the Executive Secretary in accordance with UAC 19 5 114 3 Part ID 11 of the Permit requires that BAT Requirements for Feedstock Material Stored Outside the Feedstock Storage Area the Permittee shall store and manage feedstock materials outside the ore storage pad in accordance with the following minimum performance requirements Docket No UGW 12 01 Page 1 a) Feedstock materials will be stored at all times in water tight containers and b) Aisle ways will be provided at all times to allow visual inspection of each and every feedstock container or c) Each and every feedstock container will be placed inside a water tight overpack pnor to storage or d) Feedstock containers shall be stored on a hardened surface to prevent spillage onto subsurface soils and that conforms with the followmg mmimum physical requirements 1) A storage area composed of a hardened engineered surface of asphalt or concrete and 2) A storage area designed constructed and operated in accordance with engineering plans and specifications approved in advance by the Executive Secretary All such engineering plans or specifications submitted shall demonstrate compliance with Part ID4 3) A storage area that provides containment berms to control stormwater run on and run off and 4) Stormwater drainage works approved in advance by the Executive Secretary or Other storage facilities and means approved in advance by the Executive Secretary C FINDINGS OF FACT 1) The DUSA facility receives and processes natural uranium beanng ores and certain specified altemate feed matenals and possesses byproduct matenal m the form of uranium waste tailings and other uranium byproduct waste generated by the licensee s milling operations This facility is located approximately 6 miles south of Blanding Utah on a tract of land in Sections 28 29 32 and 33 Township 37 South Range 22 East Salt Lake Baseline and Mendian San Juan County Utah 2) Representatives of the Utah Division of Radiation Control (DRC) conducted an industnal storm water inspection at the milling facility on October 18 2011 3) DRC had the following observations and findings dunng the October 18 2011 storm water inspection a) DRC observed 8 drums containing altemate feedstock matenal waiting to be processed located south of the new storage pad (on the ground) All of the dmms had their tops opened and some were not placed m overpack The drums that were not m overpack were in poor condition (rusted and perforated) b) DRC observed that offsite discharge had occurred at the southeast comer of the ore storage pad Specifically the collection sump at the southeast comer at the terminus of a Docket No UGW 12 01 Page 2 ditch along the east margin of the facility had overflowed and discharged contact storm water to the southeast outside of the fenced area DRC observed a discharge depression nil leaving the fenced area as well as evidence of discharge (mud cracks and nils) outside of the fenced area c) DRC observed multiple spills on the ground from dmms containing oils which were stored on racks east of the shop building d) DRC observed spills on the ground outside of the secondary containment from the Kerosene Tank located north of the shop building The spills appeared to be caused by the poor location of the tank valve outside of the containment and a leaking valve and/or overflow when filling vessels e) DRC observed that the New Decontamination Pad pump back system was leaking to the ground The amount of leakage was a minor volume (approx 0 5 gallons/mmute) The leakage was composed of contact wash water from the final baffle containment for the decontamination pad 4) Observations dunng the October 18 2011 storm water inspection were photographed and documented in a DRC Review Memo (DRC Ground Water Module 65) prepared on Febmary 21 2012 D VIOLATIONS Based on the foregoing FINDINGS OF FACT DUSA is m violation ofthe following 1 Part ID 11 of the Permit by failing to store and manage feedstock matenals in water tight containers (or water tight overpack) or on a qualified hardened surface 2 Part ID 10 of the Permit by failing to manage all contact and non contact storm water in accordance with the currently approved Storm Water Best Management Practices Plan (SWBMPP) Specifically DUSA violated Section 2 0 of the SWBIVIPP by failing to provide an adequate ditch and diversion system to channel and contain the surface mnoff to the tailmgs management system 3 Part ID 10 of the Permit by failing to provide adequate active operational measures to discover prevent control contain and clean up spills of kerosene outside of the secondary containment located north of the shop building 4 Part ID 10 of the Permit by failing to provide adequate active operational measures to discover prevent control contain and clean up spills of oil from dmms stored on racks east of the shop building 5 Part ID 10 of the Permit by failing to control contact wash water by effective operational measures at the New Decontamination Pad near the scale house Docket No UGW 12 01 Page 3 E ORDER In view of the foregoing FINDINGS and pursuant to Utah Code Annotated Section 19 3 108 DUSA IS hereby ordered to 1 Immediately initiate all actions necessary to achieve compliance with all applicable provisions of the Utah Water Quality Act Ground Water Quality Rules in the Utah Administrative Code and the Permit (including but not limited to requirements of the DUSA QAP) 2 Submit a report to the Co Executive Secretary within 30 calendar days of receipt of this NOV and Order to include but not be limited to the following items a The root cause of the noncompliance b Corrective steps taken or to be taken to prevent re occurrence of the noncompliance c Date when compliance was/or will be achieved F NOTICE Compliance with the provisions of this NOV/CO is mandatory Under the Division s Penalty Cntena for Civil Settlement Negotiations Utah Administrative Code § R317 1 8 DUSA's good faith efforts to comply with this Compliance Order may impact the monetary penalty that could apply m a settlement Providing false information may subject DUSA to further civil penalties or cnmmal fines UCA § 19 5 115 provides that a violation of the ACT or a related order may be subject to a civil penalty of up to $10 000 per day of violation Under certain circumstances of willfulness or gross negligence violators may be fined up to $25 000 per day of violation G CONTESTING THIS NOV/CO This NOV/CO IS effective immediately and shall become final unless contested in wnting within thirty (30) calendar days after the date this NOV/CO was signed See Utah Administrative Code § R317 9 3(3) Any further administrative proceedings in this case shall be conducted formally under Utah Code Ann §§ 63G4 101 through 63G 4 601 To contest this NOV/CO you must respond in wnting and must comply with the requirements of the Administrative Rules of the Water Quality Board found at Utah Administrative Code § R317 9 and with the requirements of the Utah Administrative Procedures Act including Utah Code Ann § 63 G 4 201(3)(a) and (b) and Adjudicative Proceedings in UAC 19 1 301 Those provisions of the Utah Administrative Procedures Act require among other things that you state your factual and legal reasons for disagreeing with the Notice of Violation or Compliance Order Docket No UGW 12 01 Page 4 and that you state the action that you would like the agency to take (e g withdrawing the NOV/CO) A response contesting this NOV/CO must be received by the Co Executive Secretary within 30 calendar days of receipt of this NOV/CO (Mailing address) (Address for by hand or ovemight delivery) Rusty Lundberg Co Executive Secretary Utah Water Quality Board 195 North 1950 West P O Box 144850 Salt Lake City UT 84114 4850 Rusty Lundberg Co Executive Secretary Utah Water Quality Board 195 North 1950 West Salt Lake City UT 84116 You will not be allowed to contest this NOV/CO in court or m any other forum if you do not first contest the NOV/CO as descnbed above -i-frVi Signed this L day of March 2012 UTAH WATER QUALITY BOARD Rusty Lundberg) 6 Co Executive Secretary F\DUSA\Stonn Water Management\2011 Inspection\NOV UGW12 0l\NOV UGW 12 01 docx Docket No UGW 12 01 Page 5 I Pro 1 U.S. Postal Service™! CERTIFIED MAIL i RECEIPT (Dmmestic Mail Only; Nt Insurance Coverage PrmviM) For delivery information visit our website at www.us|is.com« OFF C 1 A L USE'-.. ^ Postage Certifed Fee $ ^ Postage Certifed Fee 15 f; RE NOV & COMPLIANCE ORDER/TR ' C2 i I HI David C Frydenlund • a Vice President & General Counsel Denison Mines (USA) Corp (DUSA) ,1050 17th ST STE 950 ^DenverCO 80265 ^ /r i f 3<M. August 2t«S See Reverse far Instructians 7 \ 1 ^ \ V 1