DRC-2011-001006 - 0901a068801ef9fd

DENISO
MINES
January 4, 2010
Recaived
JAN 2
Division of
Radiafion Confrcl
(St I
1-00 1006
Denison Mines (USA) Corp.
1050 17th Street, Suite 950
Denver, CO 80265
USA
Tel: [phone]
Fax : 303 389^125
www.denisonmines.com
VIA E-MAIL AND OVERNIGHT DELIVERY
Mr. Rusty Lundberg, Executive Secretary
Utah Division of Radiation Control
Utah Department of Environmental Quality
195 North 1950 West
P.O. Box 144810
Salt Lake City, UT 84114-4820
Dear Mr. Lundberg:
Re: Notice of Violation and Cease and Desist Compliance Order, Docket No. UGW 10-04
This letter responds to the Utah Division of Radiation Control's ("DRC's") December 21, 2010 letter in response
to Denison Mines (USA) Corp's ("Denison's") October 19, 2010 letter regarding the above-named May 13,
2010 Notice of Violation ("NOV") and Cease and Desist Compliance Order.
As requested in DRC's letter, Denison has enclosed with this letter two signed, undated copies of the
September 22, 2010 Settiement Agreement, signed by David C. Frydenlund, Vice President and Counsel as
Attachment 1.
DRC's December 21, 2010 letter also refers to the existence of "one remaining open issue...regarding
compliance monitoring ofthe leak detection system at the NDP [New Decontamination Pad] faciiity." The letter
cites this issue as being a remaining unanswered comment from the "October 11, 2010 DRC RFI letter (p.2,
Comments on DMT [Discharge Minimization Technology Monitoring] Plan Item No.i)."
We call your attention to the fact that this comment was answered in our submittal of Revision 11 of the DMT
Plan which Denison submitted to DRC on November 12, 2010. Based on our conversation with your staff
during the week of December 20, DRC has not yet reviewed that submittal. For ease of review, copies of the
DRC's October 11, 2010 RFI letter and of page 11 of 49, Section 3.1.e.i.D, of the DMT Plan have been
enclosed as Attachment 2, demonstrating that the open issue has in fact already been addressed.
We also call your attention to the fact that, although the DRC's December 21, 2010 letter states that Denison's
response is due "within 15 calendar days of receipt of this letter (January 4, 2011)",
a) Fifteen calendar days from December 21, 2010 is January 5, not January 4, 2011.
b) December 21, 2010 is the date of DRC's email transmittal of the letter, not the date of Denison's receipt
of the Certified Mail Return Receipt Requested hard copy, which occurred on December 28, 2010. In
prior correspondence, DRC has generally considered the date of Denison's receipt of correspondence
N:\Decon Pad\01.04.05 Response to DRC 12.21.10 NOV letter.doc
Letter to Rusty Lundberg - NOV Response
January 4, 2010
Page 2
to be the date of Denison's signature on the Certified Mail hard copy, even when an electronic version
has been transmitted by DRC to Denison on a previous date. Fifteen days from December 28, 2010 is
January 12, 2011, not January 4, 2011.
In Denison's view, if a letter is sent by Certified Mail Return Receipt Requested, it is too confusing to consider
receipt on any date other than the official date of the signed certified receipt. Please advise us if you have
changed your position on this.
Please contact the undersigned if you have any questions or require any further information.
Yours very truly,
DENISON MINES (USA) CORP.
Jo Ann Tischler
Director, Compliance and Permitting
cc: David C, Frydenlund
Ron F. Hochstein
Harold R. Roberts
David E. Turk
Attachments
DENISO
MINES
ATTACHMENT 1
Denison Mines (USA) Coip.
WHITE MESA MILL
Settlemenl Agreement, Docket No. UGW10-04SA
UTAH WATER QUALITY BOARD
IN THE MATTER OF
Denison Mines (USA) Corp.
1050 SEVENTEENTH STREET SUITE 950
DENVER, COLORADO 80265
SETTLEMENT AGREEMENT
DOCKET NUMBER UGW10-04SA
l^his SETTLEMENT AGREEMENT (hereinafter "AGREEMENT") is between Denison
Mines (USA) Corp. (hereinafter "DUSA") and the UTAH WATER QUALITY BOARD
(hereinafter the "BOARD"), conceming violations of the Utah Water Quality Act (the Act),
Utah Code Annotated ("UCA ") §§19-5-101 to -124, and the Utah Administrative Code
rUAC") R317-1 to -560.
1. The BOARD has authority to administer the Utah Water Quality Act, and the Utah
Administrative Code, UCA §§19-5-106 and -115.
2. The CO-EXECUTIVE SECRETARY of the BOARD (hereinafter the "EXECUTIVE
SECRETARY") will administer the terms and provisions ofthis AGREEMENT. UCA
§§19-5-106 and 115.
3. This AGREEMENT resolves all five violations cited in the NOTICE OF VIOLATION
AND CEASE AND DESIST COMPLIANCE ORDER Docket Number UGWl0-04
(hereinafter the "NOTICE") issued to DUSA on May 13, 2010, by the BOARD
(incorporated hereto by reference). DUSA did not appeal the ORDER by requesting a
hearing before tlie BOARD; therefore, the ORDER became final. It does not in any way
relieve DUSA from any other obligation imposed under the Act or any otiier State or Federal
laws,
4. The parties now desire to resolve this matter ftilly without further administrative
proceedings except to the extent provided herein by entering into this AGREEMENT.
Entering into tliis AGREEMENT is not an admission of liability or factual allegation set
out in the NOTICE, nor is it an admission of or an agreement to any disputed facts or
disputed legal theories, nor is it an admission of any violation of any law, mle, regulation or
pennit by DUSA.
5. In resolution of the NOTICE referenced herein in paragi-aph 3, DUSA agrees to the
settlement terms stated below:
a. In resolution of Violations 1 - 5 of the NOTICE referenced in Paragraph 3 of this
Page 1 oi'2
Denison Mines (USA) Cotp.
WHITE MESA MILL
Settlement Agreement, Docket No. UGW10-04SA
6.
AGREEMENT, DUSA agrees to pay a total penalty amount of $62,500 by check
within 30 calendar days ofthe effective date ofthis AGREEMENT. The check
will be made payable to the State of Utah, delivered or mailed to the Division of
Radiation Control, Department of Environmental Quality, 195 North 1950 West,
P.O. Box 144850, Salt Lake City, Utah 84114-4850. The penalty has been
determined using the Penalty Criteria for Civil Settlement Negotiations, Utah
Administrative Code ("UAC") R3] 7-1-8 which considers such factors as the nature,
severity and extent of the violations, histor>' of noncompliance, degree of willfulness
and/or negligence, good faith efforts to comply, and economic benefit.
Nothing contained in this AGREEMENT shall preclude the BOARD from taking additional
actions to include additional penalties against DUSA for permit violations not resolved by this
AGREEMENT.
If an agreement between DUSA and the EXECUTIVE SECRETARY cannot be reached in a
dispute arising under any provision ofthis AGREEMENT, then DUSA or the EXECUTIVE
SECRETARY may commence a proceeding with the BOARD under the Utah Administrative
Procedures Act, Utah Code Annotated §§ 63G-4-101 io -601 to resolve the dispute. A final
decision in any adjudicative proceeding shall be subjecl to judicial review under applicable
state law.
8. Nothing in this AGREEMENT shall constitute a waiver by DUSA to raise in defense any
legal or factual contention for future allegations of noncompliance.
9. Nothing in this AGREEMENT shall constitute or be considered as a release from any claims,
to include natural resource damage claims, cause of action, or demand in law or equity which
the STATE may have against DUSA, or any other person, fim, partnership or coiporation for
any liability arising out of or relating in any way to the release of pollutants to waters of the
State.
AGREED to this day of_ _,20ljS,
DENISON MINES (USA) CORP UTAH WATER QUALITY BOARD
FRYDENLUND
' President and Counsel
By
RUSTY LUNDBERG
Co-Executive Secretary
Page 2 of 2
Denison Mines (USA) Corp.
WHITE MESA MILL
Settlement Agreement, Docket No. UGW10-04SA
UTAH WATER QUALITY BOARD
IN THE MATTER OF
Denison Mines (USA) Corp.
1050 SEVENTEENTH STREET SUITE 950
DENVER, COLORADO 80265
SETTLEMENT AGREEMENT
DOCKET NUMBER UGW10-04SA
This SETTLEMENT AGREEMENT (hereinafter "AGREEMENT") is between Denison
Mines (USA) Corp. (hereinafter "DUSA") and the UTAH WATER QUALITY BOARD
(hereinafter the "BOARD"), concerning violations of the Utah Water Quality Act (the Act),
Utah Code Annotated ("UCA") §§19-5-101 to -124, and the Utah Administrative Code
("UAC") R317-1 to-560.
1. The BOARD has authority to administer the Utah Water Quality Act, and the Utah
Administrative Code, UCA §§19-5-106 and -115.
2. The CO-EXECUTIVE SECRETARY ofthe BOARD (hereinafter the "EXECUTIVE
SECRETARY") will administer the terms and provisions ofthis AGREEMENT. UCA
§§19-5-106 and 115.
3. This AGREEMENT resolves all five violations cited in the NOTICE OF VIOLATION
AND CEASE AND DESIST COMPLIANCE ORDER Docket Number UGW 10-04
(hereinafter the "NOTICE") issued to DUSA on May 13, 2010, by the BOARD
(incorporated hereto by reference). DUSA did not appeal the ORDER by requesting a
healing before the BOARD; therefore, the ORDER became final. It does not in any way
relieve DUSA from any other obligation imposed under the/4c/ or any other State or Federal
laws.
4. The parties now desire to resolve this matter fully without further administrative
proceedings except to the extent provided herein by entering into this AGREEMENT.
Entering into this AGREEMENT is not an admission of liability or factual allegation set
out in the NOTICE, nor is it an admission of or an agi-eement to any disputed facts or
disputed legal theories, nor is it an admission of any violation of any law, rule, regulation or
permit by DUSA.
5. In resolution of the NOTICE referenced herein in paragraph 3, DUSA agrees to the
settlement terms stated below:
a. In resolution of Violations 1 - 5 ofthe NOTICE referenced in Paragraph 3 of this
Page 1 of 2
Denison Mines (USA) Corp.
WHITE MESA MILL
Settlement Agreement, Docket No. UGW10-04SA
AGREEMENT, DUSA agi-ees to pay a total penalty amount of $62,500 by check
within 30 calendar days ofthe effective date ofthis AGREEMENT. The check
will be made payable to the State of Utah, delivered or mailed to the Division of
Radiafion Control, Department of Environmental Quality, 195 North 1950 West,
P.O. Box 144850, Salt Lake City, Utah 84114-4850. The penalty has been
detennined using the Penahy Criteria for Civil Settlement Negotiations, Utah
Administrative Code ("UAC") R317-1-8 which considers such factors as the nature,
severity and extent of the violations, history ofnoncompliance, degree of willfulness
and/or negligence, good faith efforts to comply, and economic benefit.
6. Nothing contained in this AGREEMENT shall preclude the BOARD from taking addifional
acfions to include additional penalfies against DUSA for permit violations not resolved by this
AGREEMENT.
7. If an agreement between DUSA and the EXECUTIVE SECRETARY cannot be reached in a
dispute arising under any provision ofthis AGREEMENT, then DUSA or the EXECUTIVE
SECRETARY may commence a proceeding with the BOARD under the Utah Administrative
Procedures Act, Utah Code Annotated §§ 63(}-4-101 to -601 to resolve the dispute. A final
decision in any adjudicative proceeding shall be subject to judicial review under applicable
state law.
8. Nothing in this AGREEMENT shall constitute a waiver by DUSA to raise in defense any
legal or factual contenfion for fiature allegafions of noncompliance.
9. Nothing in this AGREEMENT shall consfitute or be considered as a release from any claims,
to include natural resource damage claims, cause of action, or demand in law or equity which
the STATE may have against DUSA, or any other person, firm, partnership or corporation for
any liability arising out of or relating in any way to the release of pollutants tjj> waters of the
State.
J
AGREED to this day of , 201/!'
DENISON MINES (USA) CORP
FRYDENLUND
:e President and Counsel
UTAH WATER QUALITY BOARD
By
RUSTY LUNDBERG
Co-Executive Secretary
Page 2 of2
ATTACHMENT 2
•s.. , .
State of Utah
GARY R HERBERT
Governor
Department of
Environmental Quality
Amunda Smiih
E.xenilive Director
DIVISION OF RADIATION CONTROL
'"Sr^^ RECEIVED
GREG BELL \ t.L.i 1 '\ /OUl
Lieutenant Governor
October 11, 2010
Cerfified Mail
(Return Receipt Requested)
Ms. Jo Ann Tischler
Director, Compliance and Permitting
Denison Mines (USA) Corp (DUSA)
1050 17'" Street, Suite 950
Denver, CO 80265
Dear Ms. Tischler:
SUBJECT: September 2, 2010 DUSA Response Letter, White Mesa Uranium Mill- New
Decontamination Pad [NDP]; the Proposed White Mesa Mill Tailings Management System
and Discharge Minimization Technology (DMT}Monitoring Plan (DMT Plan), 9/70
Revision: Denison-10.1; the Proposed Cell 4A BAT Monitoring, Operations and
Maintenance Plan (Cell 4A O&M Plan), 8/10 Revision Denison 1.6; the May 10, 2009
[2010] DRC Letter on the NDP: Comprehensive Comments on the Proposed Revised
DMT Plan and the Proposed Revised Cell 4A O&M Plan, which include revisions for the
NDP and other items.
We have reviewed the subject response letter from DUSA dated September 2, 2010. This letter was
written in response to our request for information regarding the New Decontamination Pad (NDP) dated
May 10, 2009 (actual date was May 10, 2010).
You make reference to a DUSA submittal letter, dated August 4, 2010, that contains information pertaining
to the NDP. We located two letters from DUSA to DRC with that same date. In the discussion that
follows, the DUSA letter of that date, containing information related to the NDP, will be referred to as the
August 4, 2010-A letter. We also acknowledge that in your September 2, 2010 letter you request that the
DRC ignore the DMT Plan (Revision 10.0) included in the DUSA August 4, 2010-A letter. Therefore, our
review of the DMT Plan Revision 10.0 document has ceased. However, our review has continued on a
separate document in the August 4, 2010-A letter, i.e., the subject Cell 4A O&M Plan, 8/10 Revision
Denison 16. Our comments on that document are given later in this letter.
Our letter of March 30, 2010 is our last known DRC approval of revised DMT and Cell 4A O&M Plans. It
approved DMT and Cell 4A O&M Plan revisions, separately known a.s 3/10 Revision; Denison-7, and
revision 3/10 Revision Denison 1.4, respectively.
Contingency Plan (Revision 3)
In the subject September 2, 2010 letter, DUSA provided a proposed Revision 3 of the Contingency Plan.
This was provided in response to our subject comment letter of May 10, 2010. However, our response
195 North 1950 Wesl • Sail Lake Cily, tIT
Mailing Address: P.O. Box 144850 • Sail Lake City, UT 84114-4850
Telephone [phone] • Fax [phone] • T.D.D [phone]
www (ieq.ulah.f'nv
Primed on lOO'.'i. recycled p;i[wr
Page 2
regarding the Contingency Plan will not be addressed in this letter, but will be addressed under separate
cover. Review of that plan will proceed independently, and will not be tied to the use of the NDP. For
reference, the third paragraph and Secdon 2.a. 1 of the subject September 2, 2010 DUSA letter specifically
address the contingency plan comments in our May 10, 2010 letter.
We have several comments on the Proposed DMT Plan and Cell 4A O&M Plan, as follows:
Comments on the Proposed DMT Plan (Revision 10.1, refer to the black-line copy):
1. Paragraph 3, l.e.i.D. The end of the third sentence should be changed to read, "... standing water
shall not be less than 6.2 feet."
2. On page 28 of 48 in Appendix A, entries:
a. Item numbered as one on that page should state Pond and Beach elevations (as per
approved DMT Plan 3/10 Revision: Denison-7).
b. For Cell 3 should be deleted (as per approved DMT Plan 3/10 Revision: Denison-7).
c. For Cell 4A an item (d) should be added (per the foregoing reference).
3. Per our letter dated April 29, 2010, comment two, where we previously requested that in Appendix
A of the DMT Plan, Table II. Operational Systems, that a line be added in the table for any
observable FML liner damage at any disposal cell. Please add this line.
4. For reference, on page 34 of 48 the bottom two new paragraphs of the black-line copy regard storm
water. The record of these storm water related inspection items will need to be available for the
annual storm water inspections held at the mill.
Comments on the Proposed Cell 4A O&M Plan (Revision 1.6): .
A. The list of Attachments on the last page of this plan needs to be revised. It does not include the
revisions for this page, which were proposed in the versions submitted in th; DUSA letters of
December 11, 2008 and May 26, 2009. Please update and complete.
B. The actual attachments need to be included with the proposed plan. This would
attachments included with the cuirent approved version. Cell 4A O&M Plan
Denison 1.4. Please submit.
trie Please review the above comments, and submit the requested information. Please
copies of the revised subject plans, given new and unique version numbers. Per yoi^r
2010, you committed that DUSA would fully respond to the above with 30 days of
you have any questions on the above, please contaci me.
Sin9erely,
lude complete final
email of October 11,
ijeceipt of this letter. If
David A. Rupp, P.E.
Geotechnical Services
DAR: dr
Cc: Harold R. Roberts, DUSA
Phillip Goble, DRC
F:\DUSA\ GWDPermil\NDP\Fnl Cmtsl0-20l0.doc
be a change to the
3/10 Revision
White Mesa Mill - Standard Operating Procedures 11/10 Revision: Denison 11
Book 11: Environmental Protecdon Manual, Section 3.1 Page 11 of 49
between the primary and secondary containment. The depth to water
in each portal will be measured weekly, by physically measuring the
depth to water with an electrical sounding tape/device. All
measurements must be made fi-om the same measuring point and be
made to the nearest 0.01 foot;
C. These inspections will be recorded on the Weekly Tailings Inspection
form;
D. The water level shall not exceed 0.10 foot above the concrete floor in
any standpipe, at any time. This will be detemiined by subtracting the
weekly depth to water measurement from the distance from the
measuring point in the standpipe to the dry concrete floor The depth
to water from the top (elevafion 5589.8 feet amsl) of any of the three
(3) observation ports to the standing water shall be no less than 6.2
feet. Depths less than 6.2 feet shall indicate more that O.I foot of
standing water above the concrete floor (elev. 5583.5 feet amsl), and
shall indicate a leak in the primary containment.
E. Any observation of fluid between the primary and secondary
contairunents will be reported to the Radiation Safety Officer (RSO).
F. In addition to inspection of the water levels in the standpipes, the
New Decontamination Pad, including the concrete integrity of the
exposed surfaces of the pad, will be inspected on a weekly basis. Any
soil and debris will be removed from the New Decontamination Pad
immediately prior to inspection ofthe concrete wash pad for cracking.
Observations will be made of the cunent condition of the New
Decontamination Pad. Any abnormalities relating to the pad and any
damage to the concrete wash surface of the pad will be noted on the
Weekly Tailings Inspection form. If there are any cracks greater than
1/8 inch separation (width), the RSO must be contacted. The RSO
will have the responsibility to cease activities and have the cracks
repaired.
(ii) Existmg Decontamination Pad
The Existing Decontamination Pad is located between the northwest comer of the
Mill's maintenance shop and the ore feeding grizzly.
A. The Existing Decontamination Pad will be inspected on a weekly
N:\Cell 4R\November Submittals and Revisions for Cell 4B\DMT Plan 121.11.10\Tailings Ment Svstem and DMT Mon Plan Nov 2010 Rv 11
clean.docN:\Cell dR\Nnvcmtwr Siihmittnli nnd Bnvir.innr, fnr Cnll 4R\Tnilingr. M[nit Syr.tnm nnd OMT Mnn PInn Nov 2010 Rv 11 olcan.dnc