DRC-2010-003209 - 0901a0688018aff9

State of Utah
GARY R. HERBERT
Governor
GREG BELL
Lieutenant Governor
Department of
Environmental Quality
Amanda Smith
Executive Director
DIVISION OF RADIATION CON
Dane L. Finerfrock
Director
aRC-2010-003209
May 13, 2010
CERTIFIED MAIL
(Return Receipt Requested)
Mr. Davi(3 C Frydenlund
Vice President and General Counsel
Denison Mines (USA) Corp. (DUSA)
1050 Seventeenth St. Suite 950
Denver, Colorado, 80265
Subject: May 4, 2010 DRC Inspection of New Decontamination Pad: Notice of Violation and Cease
and Desist Compliance Order, Docket No. UGWlO-04
Dear Mr. Frydenlund:
The enclosed Notice of Violation and Cease and Desist Compliance Order (hereafter "NOV/Order") is
based on Division of Radiation Control (DRC) findings after an inspection on May 4, 2010 of the White
Mesa Uranium Mill facility near Blanding, Utah. Observations and findings made during this inspection
show that certain activities at the New Decontamination Pad do not comply with requirements set forth in
Denison Mines' current Ground Water Discharge Permit. Please give this NOV/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/Order. Any response or written answer to this NOV/Order 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.
UTAH WATER QUALITY BOARD
Dane L. Finerfroclj
Co-Executive Secretary
Enclosure: Notice of Violation and Order, Docket No. UGWlO-04
168 North 1950 West • Salt Uke City, UT
Mailing Address: P.O. Box 144850 • Salt Lake City, UT 84114-4850
Telephone [phone] • Fax [phone] • T.D.D. [phone]
www.deq.utali.gov
Printed on 100% recycled paper
UTAH WATER QUALITY BOARD
IN THE MATTER OF
Denison Mines (USA) Corp.
1050 SEVENTEENTH ST. SUITE 950
PiNV|:R,C
DOCKET NUMBER UGWlO-04
NOTICE OF VIOLATION AND CEASE
AND DESIST COMPLIANCE ORDER
A. STATUTORY AUTHORITY
This NOTICE OF VIOLATION and CEASE AND DESIST COMPLIANCE ORDER
(hereafter NOV/Order) 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, 19-5-111 and 19-5-115. This NOV/Order 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 of the Board (hereafter Co-Executive Secretary) to
issue such NOTICES AND ORDERS in 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 last modified by the Co-Executive Secretary
on January 20, 2010.
2. Part I.D.4 of the Permit outlines general requirements for new construction at the facility,
as follows: "Best Available Technology Requirements for New Construction - any
construction, modification, or operation of new waste or wastewater disposal, treatment,
or storage facilities shall require submittal of engineering design plans and specifications,
and prior Executive Secretary review and approval. All engineering plans or
specifications submitted shall demonstrate compliance with all Best Available Technology
(BAT) requirements stipulated by the Utah Ground Water Quality Protection Regulations
(UAC R317-6). Upon Executive Secretary approval this Permit may be re-opened and
modified to include any necessary requirements. "
3. Part I.H.4 of the Permit outlines specific requirements for the New Decontamination Pad,
such that: "...the Permittee shall not use the New Decontamination Pad until the
following conditions are satisfied:
a. Within 30 calendar days of issuance of the Permit, the Permittee shall submit an updated
DMT Monitoring Plan for Executive Secretary approval that includes but is not limited to
the following:
1) The manner of weekly inspections the New Decontamination Pad, including the leak
detection system and concrete integrity of the decontamination pad.
2) Within 30 calendar days of issuance of the Permit, the Permittee shall submit an
updated Contingency Plan that clarifies what steps will be taken if there is water
found within the leak detection system and if discrepancies are observed on the
concrete pad.
May 13,2010 Docket No. UGW 10-04 Page 1
3) Annual Inspection - the New Decontamination Pad will be taken out of service and
inspected annually during the second quarter, to ensure integrity ofthe wash pad's
exposed concrete surface. If discrepancies are identified [i.e. crack in the concrete
with greater than 1/8 inch separation (width) or any significant deterioration or
damage of the pad surface], repairs shall be made prior to resuming the use ofthe
facility. The inspection findings, any repairs required, and repairs completed shall be
included in the in the 2"'^ Quarter DMT Monitoring Report due September 1, of each
calendar year.
b. The Executive Secretary approves the engineering design drawings for the liner and leak
detection system, before they are constructed.
c. The Permittee shall perform a hydrostatic test that verifies that the steel liner and leak
detection system performs in accordance with the approved drawings and will provide the
test results within 30 calendar days after completion of the test. The Permittee shall
provide at least 10 calendar days notice prior to performing the hydrostatic test to allow a
DRC inspector to be present.
d. The Executive Secretary approves all the As-Built drawings for the Decontamination
Pad "
C. FINDINGS OF FACT
1. Denison Mines (USA) Corporation (hereinafter DUSA) facility receives and processes
natural uranium-bearing ores and certain specified altemate feed materials, 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. In a conference call of November 24, 2008 DUSA staff informed DRC staff that DUSA
had: 1) already constructed the New Decontamination Pad without submittal of any
engineering design plans or specifications for DRC review / approval, 2) the new
decontamination pad was constructed with a below grade wastewater storage / settlement
tank, and 3) the New Decontamination Pad had not yet been put into use or service.
3. During a March 25, 2009 meeting, DUSA and DRC staff discussed possible options for
engineering design and retrofit construction that could allow the New Decontamination
Pad to comply with the Best Available Technology requirements of Part I.D.4 of the
Permit.
4. In a May 11, 2009 meeting with DRC staff, DUSA staff agreed that the company would
not use the New Decontamination Pad until after the Executive Secretary had approved its
design and construction. This meeting was then summarized in a June 5, 2009 DUSA
letter, wherein DUSA proposed several conditions that would be satisfied before use ofthe
New Decontamination Pad, including (but not limited to) prior Executive Secretary review
and approval of 1) as-built drawings, 2) engineering design drawings for the liner and
leak detection system, 3) amendments to the DUSA Discharge Minimization Technology
(hereafter DMT) Plan, 4) completion and approval of a hydrostatic test of the liner and
May 13, 2010 Docket No. UGW 10-04 Page 2
leak detection system, etc. Most of these conditions were included as Part I.H.4 ofthe
draft Permit that was exposed to public comment on September 2, 2009.
5. Several questions regarding the New Decontamination Pad were raised by DRC staff in an
August 6, 2009 Request for Information (hereafter RFI) letter to DUSA.
6. During an October 8, 2009 DRC inspection, it was observed that DUSA had installed the
steel liner in the New Decontamination Pad. During the inspection, DUSA staff informed
the DRC that the steel liner was installed about 3 weeks prior to the date of the inspection,
and the hydrostatic test had begun on October 6, 2009. No prior notice of this hydrostatic
test was provided to the DRC by DUSA.
7. In a reply letter dated November 16, 2009, DUSA responded to the August 6, 2009 DRC
RFI letter. This submittal included, but was not limited to: 1) a notice that the hydrostatic
test would begin on December 1, 2009, and 2) a 1-page excerpt of the DUSA DMT Plan
with proposed changes.
8. On January 20, 2010, the Executive Secretary finalized and executed the DUSA Ground
Water Discharge Permit. Requirements for the New Decontamination Pad, found in Part
I.H.4, were adopted with little alteration from the requirements listed in the-draft Permit.
9. In a second RFI letter of February 4, 2010, DRC staff raised additional questions regarding
the New Decontamination Pad to DUSA. One of DRC questions raised was a request for
the results of a hydrostatic test reported to have been conducted on December 1, 2009, be
certified by a Utah-licensed Professional Engineer.
10. In a letter dated March 12, 2010, DUSA responded to the February 4, 2010 DRC RFI
letter. This submittal was received by DRC on March 16, 2010, and included, but was not
limited to:
A. A Revised DMT Plan - under the requirements of Part I.H.4 of the Permit, this revised
DMT Plan was due on February 19, 2010.
B. Results of a Hydrostatic Test - conducted by DUSA between February 9 - 11, 2010.
Said results were certified by a Utah-licensed Professional Engineer. However, no
prior notification was provided by DUSA of this test, so as to allow DRC staff to
witness it.
11. During an inspection of the White Mesa Mill on May 4, 2010, DRC staff observed that the
New Decontamination Pad had been placed into service in that semi-trucks and trailers
were being washed. At that time, no approval to use the New Decontamination Pad had
been issued by the Executive Secretary. During the inspection, DUSA staff provided a
written directive from Harold Roberts (DUSA Executive Vice President, US Operations)
that authorized use of the New Decontamination Pad effective March 22, 2010.
12. In a third RFI letter dated May 10, 2010, DRC staff raised additional quesfions to DUSA
regarding the New Decontamination Pad, including but not limited to:
A. Revisions needed to the DMT Plan,
May 13, 2010 Docket No. UGW 10-04 Page 3
B. Information regarding the steel liner design / construction.
C. Information regarding hydrostatic tesfing of the steel liner.
As a result, the revised DMT Plan, the steel liner / leak detection system design ,
construction as-built report, and steel liner hydrostatic testing have not been approved by
the Executive Secretary.
13. Contrary to Part I.D.4 of the Permit, DUSA constructed a new wastewater treatment /
storage facility at the New Decontamination Pad without prior submittal of engineering
design plans / specifications, and receipt of prior Executive Secretary approval.
14. Contrary to Part J.H.4(a) ofthe Permit, DUSA failed to submit an updated DMT
Monitoring Plan within 30 days of Permit issuance, or by February 19, 2010.
15. Contrary to Part I.H.4(b) of the Permit, DUSA failed to submit engineering drawings for
the steel liner and leak detection system and receive Executive Secretary approval before
liner construction.
16. Contrary to Part I.H.4(c) of the Permit, DUSA failed to provide at least a 10 calendar day
prior notice of the hydrostatic test that verifies that the steel liner and leak detection system
perform in accordance with the approved drawings, and to allow a DRC inspector to be
present during the test.
17. Contrary to Part I.H.4(d) of the Permit, DUSA failed to refrain from use of the New
Decontamination Pad unfil after Executive Secretary approval of as-built drawings for the
facility.
D. VIOLATIONS
Based on the foregoing FINDINGS OF FACT, DUSA is in violafion of the following:
1. Part I.D.4 of the Permit for construction, and operation of a new wastewater treatment or
storage facility without submittal of engineering design plans and specificafions, and prior
Executive Secretary review and approval.
2. Part I.H.4(a) for failure to submit an updated DMT Monitoring Plan within 30 days of
Permit issuance, or by February 19, 2010.
3. Part I.H.4(b) for failure to submit engineering drawings for the steel liner and leak
detection system and receive Executive Secretary approval before liner construcfion.
4. Part I.H.4(c) for failure to provide at least a 10 calendar day prior notice of the hydrostafic
test that verifies that the steel liner and leak detection system perform in accordance with
the approved drawings, and to allow a DRC inspector to be present during the test.
5. Part I.H.4(d) for failure to refrain fi-om use of the New Decontamination Pad until after
Executive Secretary approval of the as-built drawings.
May 13, 2010 Docket No. UGW 10-04 Page 4
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 CEASE AND DESIST ALL ACTIVITIES AT THE NEW
DECONTAMATION PAD UNTIL FURTHER NOTICE.
2. Submit a report to the Co-Executive Secretary within 30 calendar days of receipt ofthis
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/Order is mandatory. Under the Division's Penalty
Criteria for Civil Setfiement Negofiafions, Utah Administrafive 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 penalfies 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 violafion. Under certain circumstances of willfulness or gross
negligence, violators may be fined up to $25,000 per day of violation.
G. CONTESTING THIS NOV/Order
This NOV/Order is effective immediately and shall become final unless contested in writing
within thirty (30) calendar days after the date this NOV/Order was signed. See Utah
Administrafive Code § R317-9-3(3). Any further administrafive proceedings in this case shall be
conducted formally under Utah Code Ann. §§ 63G4-101 through 63G-4-601.
To contest this NOV/Order, 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 of the Utah Administrafive Procedures Act, including Utah
Code Ann. § 63-G-4-201(3)(a) and (b). Those provisions of the Utah Administrafive 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 acfion that you would like the
agency to take (e.g., withdrawing the NOV/Order).
A response contesfing this NOV/Order must be received by the Co-Executive Secretary within
30 calendar days of receipt of this NOV/Order.
May 13, 2010 Docket No. UGW 10-04 Page 5
(Mailing address) (Address for by-hand or ovemight delivery)
Dane L. Finerfrock, Co-Execufive Secretary Dane L. Finerfrock, Co-Executive Secretary
Utah Water Quality Board Utah Water Quality Board
P.O. Box 144850 195 North 1950 West
Salt Lake City, UT 84114-4850 Salt Lake City UT, 84116
You will not be allowed to contest this NOV/Order in court or in any other forum ifyou do not
first contest the NOV/Order as described above.
Signed this / j^^day of May, 2010
UTAH WATER QUALITY BOARD
Dane L. Finerfrptk
Co-Executive Secretary
May 13, 2010 Docket No. UGWlO-04 Page 6