DRC-2010-001382 - 0901a0688015ea06

State of Utah
GARY R. HERBERT
Governor
GREG BELL
Lieutenant Governor
Department of
Environmental Quality
Amanda Smith
Executive Director
DIVISION OF RADIATION CONTROL
Dane L. Finerfrock
Direcior
b^c-50id-01)1.^3 .:5.
January 14, 2010
CERTIFIED MAIL
RETURNED RECEIPT REOUESTED
Mr. David G. Frydenlund
Vice President and General Counsel
Denison Mines (USA) Corp. (DUSA)
Independence Plaza, Suite 950
1050 Seventeenth Street
Denver, CO 80265
SUBJECT: Denison Mines (USA) Corp. (hereafter "DUSA") Stipulated Consent Agreement,
Docket UGW07-02, 30 Day Payment Demand.
Dear Mr. Frydenlund,
On August 31, 2007, the Utah Division of Radiation Control (DRC) issued DUSA a Notice of
Violation (NOV) and Order (Docket Number UGW07-02; hereafter NOV) based on the findings
of the review of the DUSA 2° Quarter, 2006 Groundwater Monitoring Report and DMT
Performance Standard Monitoring Report (Groundwater Monitoring Report) for the White Mesa
Uranium Mill facility near Blanding, Utah. In this NOV, three violations were cited, the first of
which involved the analysis of Tetrahydrofuran (THF), and is Hsted below:
"Violation No. 1 - Failure to use an analytical laboratory that was certified by the State of
Utah to perform analysis for THF for the April, May, arid June 2006 monitoring events, as
required in Part I.E.4(c), ofthe Permit."
To resolve the NOV the DRC and DUSA entered into a Consent Agreement on November 14,
2007 (hereafter Consent Agreement). Under Items 8 and 9 of the Consent Agreement, both
parties agreed to the following:
"8. In resolution of said ORDER, DUSA agreed to the following:
A. DUSA agrees to use an analytical laboratory certified by the State of Utah to perform
analysis for all analytes listed in Table 2 ofthe Permit for all groundwater monitoring
performed after January 1, 2008.
B. In the event that DUSA fails to use a Utah certified analytical laboratory for any
groundwater monitoring, DUSA agrees to pay stipulated penalties in the amount of
$500 per day for every day after January f 2008.
168 North 1950 West • Salt Lake City, UT
Maihng Address: P.O. Box 144850 • Salt Lake City, UT 84114-4850
Telephone [phone] • Fax [phone] • T.D.D. [phone]
www.deq.utoh.fiov
Printed on 100% recycled p:iper
Page 2
9. DUSA agrees to pay any required penalties in the form of a check, within 30 days of
written notice from the Executive Secretary, made payable to the State of Utah, and
delivered or mailed to:
Division of Radiation Control,
Utah Department ofEnvironmental Quality
P.O. Box 144850
168 North 1950 West
Salt Lake City Utah, 84114-4850"
Previous Violation and Penalty Sought / Paid
After review of the DUSA l" Quarter, 2008 Report, it was identified that DUSA failed to use a
Utah certified laboratory for analysis of THF in the January and February, 2008 monitoring
events. The number of days that DUSA was considered to bein violation of the November 14,
2007 Consent Agreement was calculated as-the date DUSA collected samples for THF in the
January 2008 monitoring event (January 29, 2008), and February 2008 monitoring event
(February 22, 2008). Therefore, the number of days DUSA was considered to be in violation of
the Consent Agreement was calculated as 2 days. Therefore, a stipulated penalty was calculated
for 2 davs at $500 per day for a total of $1,000.
Enforcement for this problem was pursued via a June 10, 2008 Notice to Pay Letter under
authority of the November 14, 2007 Stipulated Consent Agreement. Payment of the $1,000
penalty was received by DRC in a DUSA letter dated July 10, 2008.
DRC Findings; Z"** and 3'^'' Quarter, 2009 Reports
The settlement terms and stipulated penalties found in the Consent Agreement continue in force
today.
Part I.E.l(a) of the Pennit requires that all groundwater sampling shall be conducted in
accordance with the currently approved DUSA Quality Assurance Plan (hereafter DUSA QAP).
The currently approved DUSA QAP (Rev. 4.0), approved by Co-Executive Secretary on March
30, 2009, requires that THF analysis be performed by EPA Method 8260B.
The DRC received the 2"'' Quarter, 2009 Groundwater Monitoring Report bn September 1, 2009.
Review of this report shows DUSA used American West Analytical Laboratories (hereafter
AWAL) for the analysis of THF in 28 groundwater samples collected between May 12 - 14 and
16 - 21, 2009 (9 separate days).
The DRC received the 3"* Quarter, 2009 Groundwater Monitoring Report on December 2, 2009.
Review of the report shows DUSA used AWAL for the analysis of THF in 19 groundwater
samples collected between August 10 - 13, 17 - 18, and 25 - 26, 2009 (8 separate days).
DRC review Of records held by the Utah Bureau of Laboratory Improvement (BLI), shows that:
1. Prior to June 4, 2008, the AWAL laboratory certification issued by BLI for THF was
based on volatile organic contaminant (VOC) analysis under EPA Method 8260B as an
adhoc contaminant.
2. After June 4, 2008, the BLI certification for THF analysis at AWAL continued when EPA
Method 8260B was replaced with Method 8260C and THF was included as an ad hoc
contaminant.
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3. On May 31, 2009 the laboratory certification for AWAL was renewed by BLI for many
analytes, including VOC parameters. However, the ad hoc listing for THE under EPA
Method 8260C was omitted from the certificate.
Therefore, the DRC finds:
1. The DUSA THF samples collected in May and August, 2009 were analyzed by a method
not listed in the approved QAP, and constitute non-compliance with the requirements of
Part I.E.5(c), of the Permit, and
2. The DUSA THF samples collected in August, 2009 (3'" Quarter, 2009 Report) were.
analyzed in violation of Article 8.A of the November 14, 2007 Consent Agreement, that
requires DUSA use a Utah certified analytical laboratory for all groundwater monitoring
performed after January 1, 2008. In addition. Article 8.B ofthe Consent agreement sets
out the penalties that must be paid if or when violations occur.
With respect to the 3'^'' Quarter, 2009 Groundwater Monitoring Report, listed above, the Executive
Secretary has determined that DUSA was in violation for eight (8) days.
Therefore, the stipulated penalty, calculated for 8 days at $500 per day, is $4,000.
As required in Item 9 of the November 17, 2007 Stipulated Consent Agreement please submit
payment in the form of a check in the amount of $4,000 made payable to the "State of Utah"
within 30 calendar days of your receipt of this letter. Failure to submit the payment will result in
escalated enforcement action and collection measures to resolve this matter.
If you have any questions regarding this letter, please contact Phil Goble at [phone].
Sincerely,
Dane L. Finerfrock
Co-Executive Secretary
DLF/PRG:prg
cc: Fred Nelson, Assistant Attorney General
Melissa Hubbell, Attomey General's Office