DRC-2011-001020 - 0901a068801f10c9

State OfUtah
GARY R. HERBERT
Govemor
GREG BELL
Lieulenani Governor
Departmentof
Environmental Quality
Amanda Smith
Executive Director
DIVISION OF RADIATION CONTROL
Rusty Lundberg
Director
C-2011-0010
CERTIFIED MAIL
RETURN RECEIPT REOUESTED
January 10,2010
Mr. David C. Frydenlund
Vice President and General Counsel
Denison Mines (USA) Corp. (DUSA)
1050 Seventeenth Street, Suite 950
Denver, CO 80265
Re: NOTICE OF VIOLATION and ORDER; Docket Number UGWlO-04 - Settlement Agreement
Dear Mr. Frydenlund,
Thank you for retuming the September 22, 2010 Settlement Agreement, recently negotiated to resolve the
NOV Docket No. UGW 10-04 issued on May 13, 2010. We have executed the Agreement and retum a copy
of it herewith for your records.
In accordance with the DRC Proposed Civil Penalty Letter, dated July 7, 2010 (revised December 20,
2010), originally prepared to resolve DRC NOTICE OF VIOLATION (NOV) and ORDER Docket
Number UGWl0-04 issued on May 13, 2010, DUSA is required to remit a check of $62,500 within 30
calendar days of the effective date of the AGREEMENT or by Febmary 11, 2010.
Thank you for cooperating in this matter.
Sincerely,
UTAH WATER QUALITY BOARD
Rusty Lundberg
Co-Executive Secretary
Enclosure: September 22, 2010 Settlement Agreement for Docket No. UGWlO-04
168 Nonh 1950 West • Salt Uke City, UT
Mailing Address: P.O. Box 144850 • Salt Uke City, UT 84114-4850
Telephone [phone] • Fax [phone] • T.D.D. (801) 536^414
www.deg. utah.gov
Printed on 100% recycled paper
Denison Mines (USA) Goip.
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
ms 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
("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 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 the BOARD; therefore, the ORDER became fmal. It does not in any way
relieve DUSA from any other obligation imposed under thQAci or any other State or Federal
laws.
4. The parties now desire to resolve this matter ftilly without fijrther 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 agieement 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 of the NOTICE referenced in Paragraph 3 of this
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Denison Mines (USA) Coip.
WHITE MESA MILL
Settlement Agreement, Docket No. UGW10-04SA
AGREEMENT, DUSA agrees to pay a total penalty amount of $62,500 by check
within 30 calendar days of the effective date of this AGREEMENT. The check
will be made payable to the State of Utali, 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") R317-1-8 which considers such factors as the nature,
severity and extent of the violations, history of noncompliance, degree of willfijlness
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 Admimstrative
Procedures Act, Utah Code Annotated §§ 63G-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.
Nothing in this AGREEMENT shall constitute a waiver by DUSA to raise in defense any
legal or factual contention for future allegations of noncompliance.
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, firni, 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 lO^ay ofUaVUJLgLVa^ 20 lj. i
DENISON MINES (USA) CORP UTAH WATER QUALITY BOARD
By.
FRYDENLUND
f President and Counsel
RUSTY LUNaBERG
Co-Executive Secretary
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