DRC-2010-002082 - 0901a0688016e026

DENISO
MINES
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nRC-2010-00200
Deniion Mines Corp.
6425 S. Highway 191, PO Box 809
Blandlng.UT 84511
USA
Tel : [phone]
Fax : [phone]
www.dsnlftonminei.com
VIA PDF AND FEDERAL EXPRESS
February 25, 2010
Mr. Dane L. Finerfrock
Executive Secretary
Utah Radiation Control Board
State of Ulah Department of Environmental Quality
168 North 1950 West
Salt Lake City, Utah 84114-4850
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Re: Denison Mines (USA) Corp. White Mesa Mill Facility Notice of Violation and
Compliance Order, Docket No. UGW09-13
Dear Mr. Finerfrock:
This letter is in response to the above-referenced Notice of Violation dated January 19, 2010,
received by Denison Mines (USA) Corp, ("Denison") on January 26, 2010, which lists two
violations of the White Mesa Mill's (the "Mill's") Slate of Utah Groundwater Discharge Permit
No. UGW370004 (the "Pennit"), based on an inspection ofthe Mill on October 28 and 29, 2009.
Pursuant to Utah Code Annotated 19-5-111 (1953 as amended), this letter describes, for each
violation:
a) the root cause of the noncompliance;
b) steps that have been or will be taken to correct the violation;
c) date when compliance was or will be regained; and
d) steps taken or to be laken to prevent reoccurrence of the noncompliance.
DUSA responds as follows;
1. Finding 1 - Part LD.6(a) ofthe Permit^ for aUowing the fluid head in the Cell 4A leak
detection system sump to 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).
1.1 Root Cause of the Noncompliance
This violation resulted from the following:
On March 30, 2009, during a routine daily inspection, the Mill's Environmental Coordinator
found the leak detection system ("LDS") on Cell 4A to be sounding its alarm with the fluid head
meter reading 26.5 inches. There had been no indications of any problems widi the LDS on Cell
4A until March 30, 2009. The pump was running slowly, so it was pulled out of the LDS and
inspected, but was found to be in order. The pump was placed back into the LDS and left
ovemight to see if the problem had been solved. The next morning the fluid head meter reading
was over 40 inches. The pump was still observed to be running slowly and was again removed
from the LDS and tested, but again was found to be in order. Rather lhan re-installing the pump
into the LDS. a new pump was placed into the LDS, but it also was found to be running slowly.
Upon further review, Mill electricians suggested reversing the polarity on the pump. This was
done and the pump immediately began to operate properly. Mill staff concluded that the likely
cause of the problem was lhat an electrical contractor, who was doing some work at the
substation by the LDS, musl have inadvenently switched the polarity ofthe wiring on the power
supplied to the LDS. This is why reversing the polarity on the pump solved the problem.
After review of the situation, Denison has concluded that the root cause of the build up of fluids
in the LDS was a malfunctioning pump, caused by an inadvertent switching of the polarity of the
power supply.
1.2 Corrective Actions Which Have Been Taken by Denison and the Results Achieved
The following actions have been taken since the incident:
The polarity of the power supply to the pump was reversed by the Mill's Electrical Department
on March 31, 2009.
1.3 Date When Full Compliance Will be Achieved
Full compliance was achieved on March 31 2009, upon reversing the polarity of the pump.
1.4 Steps Taken or to be Taken to Prevent Reoccurrence ofthe NoncompUance.
This was an unusual circumstance that is nol expected lo reoccur. However, Mill staff are now
aware of the cause of the problem and will be in a position to immediately address a
reoccurrence in the unlikely event that a reoccurrence were to occur.
DENISO
MINES
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2. Finding 2 - Part LG,3(a) ofthe 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.
Denison responds as follows:
2.1 Root Cause of the Noncompliance
This violation resulted from the following:
a) On March 30, 2009, upon observing that the LDS on Cell 4A was sounding its alarm
and indicaling a fluid meter reading of 26.5 inches, the Mill's Environmental
Coordinator contacted Denison's Manager of Environmental Affairs in Denver via
telephone for reporting purposes and documented the issue with a memorandum. The
memorandum is the one referenced in the January 19, 2010 Notice of Violation.
b) Afler the initial notificalion from the Mill's environmental slaff, Denison's Manager of
Environmental Affairs indicated to Mill staff that he would take care of providing any
required notices lo the Executive Secretary. However, the Manager of Environmental
Affairs did not understand or was unaware of the specific notice requirements under
Pari T.G.3(a) of the Permit and did not give the required verbal and written notices to
the Executive Secretary.
c) The Manager of Environmental Affairs believed that following the procedures outlined
in the Mill's Cell 4A BAT Monitoring. Operations and Maintenance Plan (the "OM
Plan") and Discharge Minimization Technology Plan ('*DMT Plan"), which
specifically address procedures to be followed in the event of an exceedance in the Cell
4A LDS, but which do not refer to any notification requirements under Part I.G.3(a) of
the Permit, was sufficient.
d) Upon review of the circumstances, Denison has determined that the root cause of the
failure to provide the required notifications was, failure on the part of Denison's
Manager of Environmenial Affairs to fully understand the noiice requirements in Part
1.G.3 of the Permit. This was contributed to by the fact that neither the OM Plan nor
the DMT Plan expressly states thai in addition to following the procedures in those
plans, tlie Licensee must also provide notices under Part I.G,3(a) of the Permit.
The Manager of Environmental Affairs who was involved in this incident is no longer an
employee of Denison.
DENISO
MINES
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2.2 Corrective Actions Which Have Been Taken by Denison and the Results Achieved
The following actions have been taken since the incident:
a) Denison's corporate environmental staff and the Mill's radiation, safety and
environmental staff have been instructed on the proper application of Pari I.G.3(a) of
the Pennit; and
b) By a letter dated January 14, 2010, Denison proposed lo the Executive Secretary that
the DMT Plan be modified to expressly state thai notices must be made to the
Execuiive Secretary under Part l.G.3(a) of the Permit in the event that the solution level
trigger in the Cell 4A LDS is activated. The Executive Secretary has approved
Denison's proposed modification to the DMT plan by a letter dated Febnjary 3, 2010.
2.3 Date When Full Compliance WiM be Achieved
Full compliance will occur on or before March 22, 2010, with the submission to the Executive
Secretary of a revised DMT Plan that incoiporates the modification refened to in item 2.2 b)
above.
2.4 Steps Taken or to be Taken to Prevent Reoccurrence ofthe Noncompliance.
See item 2.2 above.
If you have any questions or require any further information, please contacl the undersigned.
Yours tnJv,
David C. Frydenlund
Vice President, Regulatory Affairs and Counsel
cc: Harold R. Roberts
Jo Ann Tischler
David E. Turk
Ryan Palmer
Ron F. Hochstein
DENISO
MINES
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