DRC-2011-007582 - 0901a0688028c7a4

State of Utah
GARY R. HERBERT
Govemor
Lieutenantli^^^cs
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Department of
Environmental Quality
Amanda Smith . ^
Executive Director r-=l
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DIVISION OF RADIATION CONTROL ^
Rusty Lundberg
Director
U-S. Postal Service™
CERTIFIED MAIL. RECEIPT
(Domestic Mail Only; No Insurance Coverage Provided)
October 27, 2011
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RE: DRC FINDINGS, CONF ACTION & NOED/RT,
David C Frydenlund
Vice President & General Counsel
Denison Mines (USA) Corp (DUSA)
1050 17th ST STE 950
Denver CO 80265
PS-Form 3800. August 2006 See Reverse for Instructions
CERTIFIED MAIL
RETURN RECEIPT REOUESTED
Mr. David C. Frydenlund
Vice President and General Counsel
Denison Mines (USA) Corp. (DUSA) :
1050 Seventeenth St. Suite 950
Denver, Colorado, 80265
Subject: 2"'' Quarter, 2011 DUSA DMT Performance Standards Monitoring Report and Ceil 4A and Cell
4B Performance Standards Monitoring Report (Dated August 31,2011): Ground Water Quality
Discharge Permit UGW370004: DRC Findings, Confirmatory Action and Notice of
Enforcement Discretion
Dear Mr. Frydenlund:
On September 1,2011, the Utah Division of Radiation Control (DRC) received the 2"^ Quarter, 2011 DMT
Performance Standards Monitoring Report and Cell 4A and Cell 4B Performance Standards Monitoring
Report (dated August 31, 2011) for the DUSA White Mesa Mill near Blanding, Utah. After review of the
referenced report, several issues were identified, as discussed below. These items were discussed with you
during a teleconference on October 26, 2011. This letter summarizes the outcome of our staff review ofthe
Report and the agreements made during the teleconference. The DRC findings were as follows:
1. Part 3.1 (b)(v) of the GWDP requires DUS A to monitor and record weekly, the depth to wastewater
in the Cell 2 slimes drain access pipe to determine maximum and minimum head before and after a
pumping cycle, respectively. This information was not included in the Report.
2. Appendix A to the Report presents weekly water surface elevations in the tailings cells and Roberts
Pond. Data for the week of April 29, 2011 does not appear in the referenced Attachment A.
3. DUSA began diverting tailings to Cell 4B on February 1, 2011. No solution pool elevation ,
measurements were taken until May 31, 2011. This is in violation of Part 3.1 (a) of the BAT Plan.
DRC previously noted this violation during its review letter for the 1" Quarter Report dated August
31, 2011. During the 2"'' Quarter of 2011 DUSA discovered this violation and retumed to
compliance.
4. Part 3.1(d) of the DMT/BAT requires DUSA measure the size and maximum elevation of the
tailings beach in Cells 4A and 4B monthly. This information does not appear in the Report.
195 North 1950 West • Salt Lake City, UT
Mailing Address: P.O. Box 144850'Skit Lake City, UT 84114-4850 ^
Telephone [phone] • Fax [phone] • T.D.D. (801) 5364414
www.deq.utah.gov
Printed on 100% recycled paper -
David C. Frydenlund
Page 2
October 27, 2011
5. Part 3.1 (a) of the DMT Plan requires DUSA to monitor the leak detection system for Cells 1 and 3
weekly. The Plan requires DUSA to report the leak detection system as dry, or to report the fluid
level in the system. Detecting fluid triggers a requirement to extract the fluid, measure the
extracted volume, and compute a leakage rate for the cell. The 2"^^ Quarter DMT Performance
Standards Monitoring Report contains no data for either the Cell 1 or Cell 3 leak detection systems.
6. Part 1 .D.6(b) ofthe GWDP specifies a head-dependent allowable leakage rate through the Cell 4A
flexible membrane liner. Part 3.1(a) of the BAT Plan reiterates this requirement. In light ofthe
spillway between Cell 4A and Cell 4B, the DRC removed the requirement to measure the Cell 4A
solution pool elevation to demonstrate compliance with freeboard requirements for the cell. When
DUSA placed Cell 4B into service on February 1, 2011, measurement of the solution pool
elevation in Cell 4 A ceased. The result of terminating the Cell 4A monitoring was a lack of data to
use to calculate the allowable leakage rate through the flexible membrane liner. This failure to
monitor persisted through the end ofthe 2"*^ Quarter of 2011. DRC addressed this issue in
conjunction with the review of the 1 Quarter Report. DUSA has now retumed to compliance with
respect to this monitoring requirement.
7. Part I .E.8(a)(l) ofthe GWDP requires DUSA to provide continuous operation of the Cell 4A LDS
pumping and monitoring equipment, and to make such equipment operational within 24 hours of
discovery of a failure of such equipment. On June 27, 2011 Mill personnel discovered that the LDS
monitoring datalogger had ceased to record on June 7, 2011. Plant personnel rebooted the system
and observed resumption of data logging. Plant personnel checked the logger more frequently
following the reboot, and repeated the system reboot on July 1, 2011. Upon discovery that
rebooting the system did not correct the failure, DUSA consulted with the equipment manufacturer
for trouble shooting and repair advice. DUSA has restored the data logging equipment to compliant
operation, including installation of an upgraded version of the data management software during
July, 2011. Failure to repair a failed system and bring it to fiill operation within 24 hours
constitutes a violation of Part 1 .G.3 ofthe GWDP.
Confirmatory Actions
During the October 26, 2011 conference call, DUSA committed to do the following on or before
November 14, 2011:
1. DUSA will provide the weekly inspection sheets and a data table sunmiarizing the weekly
maximum and minimum fluid level in the Cell 2 Slimes Drain for the 2"*^ quarter of 2011 to the
DRC as an addendum to the 2""^ Quarter DMT Performance Standards Monitoring Report. All
fiiture DUSA DMT Performance Standards Monitoring Reports will include weekly inspection
sheets and a data table presenting the weekly maximum and minimum fluid level in the Cell 2
Slimes Drain.
2. DUSA will provide a revised Attachment A to the report that includes the weekly water surface
elevations in the tailings cells and Roberts Pond for the week of April 29,2011.
3. DUSA will provide the monthly survey data and a data table summarizing the tailings beach area
and maximum elevation for each month of the 2"'* quarter of 2011. All fiiture DUSA DMT
Performance Standards Monitoring Reports will include monthly survey data and a data table
presenting the tailings beach area and maximum elevation for each month.
David C. Frydenlund
Page 3
October 27, 2011
4. DUSA will provide the leak detection system monitoring results for Cells 1 and 3 in a table for
each week of the 2"** quarter of 2011. All future DUSA DMT Performance Standards Monitoring
Reports will include leak detection system monitoring results for Cells 1 and 3 in a table for each
week of the monitoring period.
Notice of Enforcement Discretion
Although DUSA failed to monitor the solution pool elevation in Cell 4B for the first two months of the 2"''
Quarter of 2011, the Executive Secretary has determined to use enforcement discretion in this matter, based
on:
1. This violation was a continuation of an issue addressed in a previous DRC action, specifically the
referenced letter of August 31, 2011; and,"
2. DUSA has, as of May 31, 2011, retumed to compliance.
Although DUSA failed to monitor the solution pool elevation in Cell 4A from Febmary 1 through June 30,
2011, the Executive Secretary has determined to use enforcement discretion in this matter, based on:
1. This violation was a continuation of an issue addressed in a previous DRC action, specifically the
letter of August 31, 2011 transmitting findings of DRC review of the 1 Quarter Report; and,
2. DUSA has, as of July, 2011, retumed to compliance; and,
3. Quantities of fluid pumped from the leak detection system were well below the lowest rate
presented in Table 1 A, AppendiX; E to the BAT Plan, which table relates solution head to
maximum allowable leakage rate. Thus, the cell was operated in compliance with the leakage rate
requirement, even though a numerical proof of that compliance is lacking.
Although DUSA failed to retum the Cell 4A leak detection system data logging equipment to fiill
functionality within 24 hours of discovering a failure of the product, the Executive Secretary has
determined to use enforcement discretion in this matter, based on:
1. DUSA persormel made reasonable efforts to troubleshoot and repair the data logger.
2. DUSA continued to manually collect daily measurement from the process controller. This
redundant data set provided data of sufficient quality and quantity effectively to perform as a
surrogate for the data logger.
3. The product failure and protracted trouble shooting did not result in a violation of the performance
standards for the leak detection system, or result in failure to detect a liner breach.
David C. Frydenlund
Page 4
October 27, 2011
Please respond in writing within seven calendar days of receipt of this letter if you disagree with the above
agreed upon resolution or compliance schedule.
Thank you for your continued cooperation.
UTAH WATER QUALITY BOARD
Rusty Lundberg
Co-Executive Secretary
RL/RJT:rjt