DRC-2010-001341 - 0901a0688015ea42

State of Utah
JON M. HUNTSMAN, JR.
Governor
GARY HERBERT
Lieutenant Governor
t^c-,3aO'CDi.2>^l
Department of
Environmental Quality
Williain J. Sinclair
Actini; Executive Director
DIVISION OF RADIATION CONTROL
Dane L. Finerfrock
Director
January 19,2010
CERTIFIED MAIL
(Return Receipt Requested)
Mr. Steven Landau
Environmental Manager
Denison Mines (USA) Corporation
1050 17* Street, Suite 950
Denver, CO 80265
Dear Mr. Landau:
SUBJECT: Denison Mines (USA) Corporation (DUSA) White Mesa Mill Facility
Notice of Violation and Compliance Order, Docket No. UGW09-13
The enclosed Notice of Violation and Compliance Order ("NOV/CO") is based on Division of Radiation
Control (DRC) findings from an inspection at the White Mesa Uranium Mill on October 28-29, 2009, and
review of DUSA Cell 4A leak detection system records. This matter was discussed by Mr. David Rupp
with you on November 24, 2009. Please give this order your immediate attention.
A written response is required within 30 calendar days after receipt of this NOTICE. This order is
fully enforceable unless appealed in writing within 30 days, as described in the "Notice" section of
this NOV/CO. Any response or written answer to this NOV/CO should be addressed to Dane L.
Finerfrock, Co-Executive Secretary, Utah Water Quality Board, 168 North 1950 West, P.O. Box
144850, Salt Lake City, Utah 84114-4850.
If you have any questions, please call Mr. David Rupp of DRC at [phone].
Sincerely,
UTAH WATER QUALITY BOARD
Dane L. Finei-ffock
Co-Executive Secretary
Enclosure: Notice of Violation and Order. Docket No. UGW09-13
F:\Dt^S.^\NOV XnitlJan 20IO.doc
168 North 19.^0 Wcsl • Salt Lake Cily. VX
Mailing Address. P O. Box I448.S() • Salt Lake City. UT 841 14-4850
Telephonic (8011.5."i6-425(l • Fa.\ (8(11-533-4097 • T.D.D. [phone]
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UTAH WATER QUALITY BOARD
IN THE MATTER OF
DENISON MINES (USA) CORP.
1050 SEVENTEENTH ST. SUITE 950
DENVER, COLORADO, 80265
DOCKET NUMBER UGW09-13
NOTICE OF VIOLATION AND
COMPLIANCE ORDER
A. STATUTORY AUTHORITY
This NOTICE OF VIOLATION and COMPLIANCE ORDER (NOV/CO) is issued to Denison
Mines (USA) Corporation (hereinafter DUSA), by the UTAH WATER QUALirY 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, 19-5-111 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 authorized the Co-Executive Secretary ofthe Board (Co-Executive
Secretary) to issue such NOTICES AND ORDERS in accordance with §19-5-106(8) of the 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, last modified on March 17, 2008.
2. Part I.D.6 of the Permit defines Best Available Technology (hereafter BAT) Performance
Standards for Tailings Cell 4A as follows: "...the Permittee shall operate and maintain Tailings
Cell 4A so as to prevent release of wastewater to groundwater and the environment in
accordance with BAT Monitoring Operations and Maintenance Plan, as currently approved by
the Executive Secretary, pursuant to Part I.H. 19. At a minimiim these performance standards
shall include:
a) Leak Detection System (LDS) Maximum Allowable Daily Head - the fluid head in the
LDS shall not exceed 1 foot above the lowest point in the lower membrane liner...."
3. On September 17, 2008 the Co-Executive Secretary approved the Cell 4A BAT Monitoring,
Operations and Maintenance Plan (hereafter the O&M Plan), version 09/08 Revision Denison
1.3. Page 5 and 6 of the O&M Plan requires that the leak detection system be operated as
follows:
"2) Maximum Allowable Head - the Permittee shall measure the fluid head above the
lowest point on the secondary flexible membrane by the use of procedures and
equipment specified in the White Mesa Mill Tailings Management System and
Discharge Minimization Technology (DMT) monitoring Plan, 3/07 Revision:
Denison-3 [hereafter the DMT Plan], or the currently approved DMT Plan. Under no
circumstance shall fluid head in the leak detection system sump exceed a 1-foot level
above the lowest point in the lower flexible membrane liner."
4. Page 9 of the O&M Plan under Leak Detection System states that, "The pump is equipped with
January 19.2010 Ducl<et No. UGW09-13 Pagel
a pressure sensing transducer to start the pump once the level of solution in the leak detection
sump is approximately 2.25 feet (elevation 5555.89) above the lowest level ofthe leak
detection sump (9 inches above the lowest point on the lower flexible membrane liner, to
ensure the allowable 1.0 foot (5556.14 feet amsl) above the lowest point on the lower flexible
membrane liner is not exceeded)." In other words, the 1-foot performance standard for Cell 4A
LDS head (above the lowest point on the flexible membrane liner) equates to a transducer
reading of 30-inches.
5. In the event that there is a failure to maintain BAT under the Permit, Part I.G.3(a) requires that,
"Permittee to Provide Information - in the event that the Permittee fails to maintain DMT or
BAT or otherwise fails to meet DMT or BAT standards as required by the permit, the Permittee
shall submit to the Executive Secretary a notification and description of the failure according to
R317-6-6.16(C)(1). Notification shall be given orally within 24 hours ofthe Permittee's
discovery of the failure of DMT or BAT, and shall be followed up by written notification,
including the information necessary to make a determination under R317-6-6.16(C)(2), within
five days of the Permittee's discovery of the failure of best available technology."
C. FINDINGS OF FACT
1. The DUSA facility receives and processes natural uranium-bearing ores and alternate feed
niaterials, and possesses byproduct material in 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 Meridian, San Juan County, Utah.
2. The Division of Radiation Control (hereafter DRC) conducted a review of each individual 1^',
2"'' and 3'^'^ Quarter, 2009 White Mesa Uranium Mill DMT Performance Standard Monitoring
Report covering quarter year periods in the time period from January through September 2009
respectively, to determine compliance with State Rules and Regulations, terms of the Permit,
the DMT Plan and the O&M Plan. None of these reports described any BAT failure at Tailings
Cell 4A in 2009.
3. During an inspection of the DUSA facility on October 28 and 29, 2009 DRC staff discovered a
DUSA memorandum dated March 31, 2009, regarding the Cell 4A Leak Detection System.
Part ofthe DUSA memorandum states that, "On March 30"^ at approximately 1050 AM the
LDS on Cell 4A was found alarming. The alarm is set to go off at 25" of head in the leak
detection pipe. When I arrived the readout said 26.5" the pump was on but the flow meter
wasn't registering the flow... we thought the pump had started to go out which would account
for the low yield of solution being pumped... Upon arriving the moming of March 31^' the
LDS was found to worse off than the day before. The readout was in the 40 plus inches of head
... the electrician suggested reversing the electrical connection on the pump. This was done
and the pump began pumping at a very high volume where it should have been pumping all
along..."
4. Contrary to Part I.D.6(a) of the Permit, DUSA allowed the fluid head in the Cell 4A leak
detection system sump to exceed a I -foot level above the lowest point in the lower flexible
membrane liner; i.e., the LDS fluid level exceeded a transducer reading of 30-inches.
January 19. 2010 Docket No. UGW09-I3 Page 2
Contrary to Part I.G.3(a) ofthe Pei-mit, DUSA failed to provide 24-hour verbal notice and five
day written notice of a BAT failure to the Executive Secretary.
D. VIOLATIONS
Based on the foregoing FINDINGS OF FACT, DUSA is in violation ofthe following:
1. Part I.D.6(a) of the Permit, for allowing the fluid head in the Cell 4A leak detection system
sump exceed a 1-foot level above the lowest point in the lower flexible membrane liner (or a
LDS transducer reading of more than 30-inches of fluid).
2. Part I.G.3(a) of the Permit, for failing to provide 24-hour verbal notice and five day written
notice to the Executive Secretary for a BAT failure at the Tailings Cell 4A leak detection
system.
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 ofthe Permit, the DUSA Cell 4A
O&M Plan and the DMT Plan.)
2. Submit a report to the Co-Executive Secretary within 30 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 ofthe 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 Criteria
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 in a settlement.
Providing false information may subject DUSA to further civil penalties or criminal 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 ceiTain circumstances of willfulness or gross
negligence, violators may be fined up to $25,000 per day of violation.
January 19. 2010 Diickei No. L1GW09-13 Page 3
G. CONTESTING THIS NOV/CO
This NOV/CO is effective immediately and shall become final unless contested in writing within thirty
(30) 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 writing 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 ofthe Utah Administrative Procedures Act, including Utah Code Ann. § 63-G-4-
201(3)(a) and (b). 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, 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)
Dane L. Finerfrock, Co-Executive Secretary Dane L. Finerfrock, Co-Executive Secretary
Utah Water Quality Board Utah Water Quality Board
168 North 1950 West Utah DEQ Building 2, DRC 2"'^ Floor
P.O. Box 144850 168 North 1950 West
Salt Lake City, UT 84114-4850 Salt Lake City UT, 84114
You will not be allowed to contest this NOV/CO in court or in any other forum if you do not first
contest the NOV/CO as described above.
Signed this // /day of January, 2010
UTAH WATER QUALITY BOARD
Dane L. Finerfrpjzk
Co-Executive Secretary
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January 19, 2010 Docket No. UGW09-13 Page 4