DRC-2011-006189 - 0901a068802389a3

4C\
State of Utah
GARY R. HERBERT
Govemor
GREG BELL
Lieutenant Governor
June 2, 2011
Department of
Environmental Quality
Amanda Smith
Executive Director
DIVISION OF RADIATION CONTROL
Rusty Lundberg
Director
CERTIFIED MAIL
(Return Receipt Requested)
Mr. David C Frydenlund
Vice President and General Counsel
Denison Mines (USA) Corp. (DUSA)
1050 Seventeenth SL Suite 950
Denver, Colorado, 80265
Subject; Southwest Investigation and installation of monitoring wells MW-36 and MW-37: Notice of
Violation and Compliance Order, Docket No. UGWl 1-05
Dear Mr. Frydenlund:
The enclosed Notice of Violation and Compliance Order ("NOV/CO") is based on Division of Radiation
Control (DRC) fmdings from an inspection conducted May 17 - 20, 2011 of the White Mesa Uranium Mill
facility near Blanding, Utah. Please give this 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 calendar days, as described in the "Notice"
section of this NOV/CO. Any response or written answer to this NOV/CO should be addressed to
Rusty Lundberg, Co-Executive Secretary, Utah Water Quality Board, 195 North 1950 West, P.O.
Box 144850, Salt Lake City, Utah 84114-4850.
UTAH WATER QUALITY BOARD
Rusty Lundberg
Co-Executive Secretary
Enclosure: Notice of Violation and Order, Docket No. UGWl 1-05
195 North 1950 West • Salt Lake City, UT
Mailing Address: P.O. Box 144850 • Salt Lake City, UT 84114-4850
Telephone [phone] • Fax [phone] • T.D.D. [phone]
www.deq.ulah.gov
Printed on 100% recycled paper
UTAH WATER QUALITY BOARD
IN THE MATTER OF
Denison Mines (USA) Corp.
1050 SEVENTEENTH ST. SUITE 950
DENVER, COLORADO, 80265
DOCKET NUMBER UGWl 1-05
NOTICE OF VIOLATION AND
COMPLIANCE ORDER
A. STATUTORY AUTHORITY
This NOTICE OF VIOLATION and COMPLIANCE ORDER (NOV/CO) 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/CO is also issued in accordance with the Utah Administrative Procedures Act,
UtahCodeAnn. §§ 63G4-101 to63G-4-601. The BOARD has authorized the Co-Executive
Secretary of the Board (Co-Executive Secretary) to issue such NOTICES AND ORDERS in
accordance with §19-5-106(8) of the 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 modified by the Co-Executive Secretary on
March 17, 2008, January 20, 2010, June 17, 2010, and was last modified on February 15,
2011.
2. I.H.4 of the Permit requires states that: "Installation of New Groundwater Monitoring
Wells - the Permittee shall install at least two additional hydraulically downgradient wells
adjacent to Tailings Cell 4B, to replace existing wells MW-33 and MW-34. These
replacement wells shall be installed, in accordance with the following requirements:
a) New Compliance Monitoring Wells MW-36 and MW-37 - install at least two new
compliance monitoring wells (MW-36 and MW-37), that will be located and completed
as follows:
1) At least one well placed on the south side of Cell 4B between existing wells MW-15
and MW-34.
2) At least one well located on the west side of Cell 4B, between MW^33 and MW-3 5.,
3) All new wells must be properly designed, installed, screened / completed, and
developed in accordance with Part I.E.4 of the Permit.
4) All new wells will demonstrate a saturated thickness of at least 5-feet, inside the
well screen, as measured from the upper geologic contact ofthe Brushy Basin
Member of the Morrison Formation, or as approved by the Executive Secretary.
5) All new wells shall provide early detection of tailings cell contamination of shallow
groundwater from Tailings Cell 4B.
6) All new wells shall provide discrete groundwater monitoring for tailings Cell 4B.
b) On or before June 30, 2011 or as otherwise approved by the Executive Secretary, the
June 2, 2011 Docket No. UGWl 1-05 Page 1
Permittee shall submit a monitoring well As-Built report for all new wells installed to
document said well construction for Executive Secretary approval. Said report shall
comply with the requirements of Part I.E. 6. In the event the Executive Secretary
requires additional information, the Permittee will provide all requested information
within a time frame approved by the Executive Secretary.
c) The Permittee shall provide at least a 14 calendar day written notice to allow the
Executive Secretary to observe all drilling and well installation activities. In the event
the Executive Secretary determines that additional monitoring wells are required,
these new wells will be installed and related As-Built Report(s) submitted (for
approval) within a time frame approved by the Executive Secretary. "
3) Part I.H.6 of the Permit states that: "Detailed Southwest Hydrogeologic Investigation and
Report - the purpose of this investigation is to define, demonstrate, and characterize: 1)
hydraulic connection and local groundwater flow directions between the area near
Tailings Cell 4B, and the western margin of White Mesa, including Westwater and
Cottonwood Seeps, and Ruin Spring, and 2) the full physical extent of unsaturated area
between former well MW-16, MW-3 3 and the western margin of White Mesa, as defined
above. In preparation of this report, the Permittee shall:
a) Install multiple borings and / or monitoring wells to completely enclose and define
both: 1) the subsurface structural high area of the upper Brushy Basin Shale Member
geologic contact and 2) the horizontal limits of saturation in the Burro Canyon
Formation. Said study shall include, but is not limited to a subsurface area between
Tailings Cell 4B, and the Westwater and Cottonwood Seeps, and Ruin Spring. At a
minimum the characterization /definition ofsaid subsurface area shall be based on:
1) Dry wells or piezometers, completed down to a depth equal to or below the upper
geologic contact of the Brushy Basin Shale Member,
2) Piezometers or wells that intercept the shallow aquifer and encounter a saturation
thickness of 5-feet or more. Said wells and piezometers shall have a minimum
inside diameter of 3 inches. The Permittee shall complete hydraulic testing of all
such wells and piezometers in accordance with Part I.F.6(c) ofthis Permit.
b) Demonstrate the full geologic and physical extent of the apparent unsaturated
structural high between Tailings Cell 4B and the western margin of White Mesa,
including Westwater and Cottonwood Seeps and Ruin Spring.
c) Demonstrate the location and direction of all groundwater flow paths between
Tailings Cell 4B and nearby Westwater and Cottonwood Seeps and Ruin Spring.
Determine average linear groundwater velocity to said groundwater discharge
locations.
d) Perform geologic logging of all borings / wells, and submit geologic logs performed
and certified by a Utah licensed Professional Geologist.
e) Submit the investigation report for Executive Secretary review and approval on or
before January 13, 2012. This report shall be certified by a Utah Licensed
Professional Engineer or Geologist and will include but is not limited to:
1) Geologic logs and well As-built diagrams that comply with the requirements of
PartI.F.6.
2) A revised equipotential map to describe both the physical extent ofthe dry zone
June 2,2011 Docket No. UGW 11 -05 Page 2
and all groundwater flow directions near Tailings Cell 4B and Westwater and
Cottonwood Seeps, and Ruin Spring. Said map shall demonstrate flowpaths
(steamtubes) to all respective groundwater discharge locations at the western
margin of White Mesa.
3) A revised structural contour map for the upper Brushy Basin Shale for the facility
and physical extent of White Mesa.
4) A revised saturation thickness map based on contemporaneous groundwater head
data for the Burro Canyon aquifer for the facility and physical extent of White
Mesa.
5) Appropriate geologic and hydrogeologic maps and cross-sections (to scale).
6) Results and interpretation of aquifer permeability testing as per Part I.E. 6(c) of
this Permit.
g) The Permittee shall provide at least a 14 calendar day written notice to allow the
Executive Secretary to observe all drilling and well installation activities.
h) In the event the Executive Secretary determines that additional information is
required, this information will be submitted within a time frame approved by the
Executive Secretary"
C. FINDINGS OF FACT
The 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.
DRC staff conducted an inspection at the White Mesa Mill facility during May 17-21,
2011. During a closeout meeting with DUSA personnel, DUSA disclosed that drilling
associated with the Southwest Investigation had already been completed and monitoring
wells MW-36 and MW-27 for Cell 4B had also been installed.
On May 23, 2011 DRC staff checked Division records to confirm receipt of any written
DUSA notification for the Southwest Investigation and monitoring wells MW-36 and
MW-37 planned activities. No written DUSA notification was found in DRC records.
In a conference call with DUSA on May 25, 2011, the DRC staff.asked DUSA to provide
evidence on or before the end of business on May 26, 2011, that they had sent the DRC
written notification of the planned activities for the Southwest Investigation and the
installation of monitoring wells MW-36 and MW-37.
In a May 26, 2011 e-mail to the DRC, Ms. Jo Ann Tischler, of DUSA, stated: "/ have not
located any documentation that Denison Mines (USA) Corp. ("Denison') provided a 14
calendar day notice to the Utah Division of Radiation Control ("DRC") regarding the
June 2, 2011 DocketNo. UGWl 1-05 Page 3
drilling campaign for the Installation of New Monitoring Wells (Part 1.H.4) and the
Detailed Southwest Hydrogeologic Investigation (Part I.H.6) of GWDP UGW3 70004. "
6. Contrary to Part I.H.4(c) of the Permit, DUSA failed to provide at least a 14 calendar day
written notice to allow the Executive Secretary to observe all drilling and well installation
activities of monitoring wells MW-36 and MW-37.
7. Contrary to Part I.H.6(g) of the Permit, DUSA failed to provide at least a 14 calendar day
written notice to allow the Executive Secretary to observe all drilling and well installation
activities for the Southwest Investigation.
D. VIOLATIONS
Based on the foregoing FINDINGS OF FACT, DUSA is in violation of the following:
1. Part I.H.4(c) of the Permit for failing to provide at least a 14 calendar day written notice to
allow the Executive Secretary to observe all drilling and well installation activities for the
Southwest Investigation.
2. Part I.H.6(g) of the Permit, DUSA failed to provide at least a 14 calendar day written
notice to allow the Executive Secretary to observe all drilling and well installation
activities for the Southwest Investigation.
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 initiate all actions necessary to achieve compliance with all applicable
provisions of the Utah Water Quality Act, Ground Water Quality Rules in the Utah
Administrative Code, and the Permit (including but not limited to requirements ofthe
DUSA QAP.)
2. Submit a report to the Co-Executive Secretary within 30 days of receipt of this 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 ofthe noncompliance,
c. Date when compliance was/or will be achieved.
F. NOTICE
Compliance with the provisions of this NOV/CO is mandatory. Under the Division's Penalty
Criteria for Civil Settlement Negotiations, Utah Administrative Code § R317-1-8, DUSA's good
faith efforts to comply with this Compliance Order may impact the monetary penalty that could
June 2,2011 ^ Docket No. UGWl 1-05 Page 4
apply in a settlement. Providing false information may subject DUSA to ftirther civil penalties 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 violation. Under certain circumstances of willftilness or gross
negligence, violators may be fined up to $25,000 per day of violation.
G. CONTESTING THIS NOV/CO
This NOV/CO is effective immediately and shall become fmal unless contested in writing within
thirty (30) days after the date this NOV/CO was signed. See Utah Administrative Code § R317-9-
3(3). Any ftirther administrative proceedings in this case shall be conducted formally under Utah
Code Ann. §§ 63G4-101 through 63G-4-601.
To contest this NOV/CO, 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 Administrative Procedures Act, including Utah Code
Ann. § 63-G-4-201(3)(a) and (b). Those provisions of the Utah Administrative 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 action that you would like the
agency to take (e.g., withdrawing the NOV/CO).
A response contesting this NOV/CO mustbe received by the Co-Executive Secretary within 30
calendar days of receipt of this NOV/CO.
(Mailing address) (Address for by-hand or ovemight delivery)
Rusty Lundberg, Co-Executive Secretary Rusty Lundberg, Co-Executive Secretary
Utah Water Quality Board Utah Water Quality Board
195 North 1950 West 195 North 1950 West
P.O. Box 144850 Sah Lake City UT, 84116
Sah Lake City, UT 84114-4850
You will not be allowed to contest this NOV/CO in court or in any other forum if you do not first
contest the NOV/CO as described above.
Signed this day of June, 2011
UTAH WATER QUALITY BOARD
Rusty Lundberg
Co-Executive Secretary
June 2, 2011 Docket No. UGWl 1-05 Page 5
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SUBJECT: SOUTHWEST / PRG
Mr. David C. Frydenlund
Vice President, Regulatory Affairs G-
Denison Mines (USA) Corp. (DUSA)
105Q Seventeenth Street, Suite 950 ..
Denver, CO 80265
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