DRC-2012-001314 - 0901a068802c5969

DENISO
MINES
April 12 2012
VIA E MAIL AND OVERNIGHT DELIVERY
Mr Rusty Lundberg
Utah Department of Environmental Quality
195 North 1950 West
PO Box 144850
Salt Lake City UT 84114 4850
Denison Mines (USA) Corp
105017th Street Suite 950
Denver CO 80265
USA
Tei 303 628 7798
Fax [phone]
www denisonmines com
C-2012-001314
Re Storm Water Inspection at the White Mesa Uranium Mill
Docket No UGW 12 01 March 7 2012
Notice of Violation and Compliance Order
Dear Mr Lundberg
This letter transmits Denison Mines (USA) Corp s ( Denison s ) response to the above named Notice of
Violation and Compliance Order (the Order) which Denison received on March 14 2012 The Order cited five
violations of the Groundwater Discharge Permit ( Permit) and ordered that Denison
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 of the Denison Quality Assurance Plan ( QAP ))
2 Submit a report to the Co Executive Secretary of the Utah Water Quality Board (the Executive
Secretary*) within 30 calendar days of receipt of the 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
This letter constitutes Denison s report in response to the above requirements As required by the Order we
have listed each cited violation below followed by the response contents
The Order states that
Based on the foregoing FINDINGS OF FACT DUSA is in violation of the following
Violation 1
Part I D 11 of the Permit by failing to store and manage feedstock materials in water tight containers (or water
tight overpack) or on a qualified hardened surface
Y Mnspections and NOVs\Stormwater lnspections\Stormwater Inspection NOV and RFI 03 07 12\04 12 12 Response to
DRC 03 07 12 NOV final doc
Letter to Mr Rusty Lundberg
Order Docket No UGW12 01
April 12 2012
Page 2
Denison Response
1 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 QAP)
All feedstock containers which are required by Part I D 11 of the Permit to be placed on a hardened surface
designed constructed and operated in accordance with engineering plans and specifications approved in
advance by the Executive Secretary were subsequently placed on such a hardened surface (an approved
curbed concrete pad) during the week of October 25 2011
2 a Root Cause of the Non Compliance
Operations in the alternate feed area require maneuvering space for staging of drums of alternate feed to be
opened emptied and processed in each alternate feed campaign
At the time of the October 2011 Storm Water Inspection Denison had constructed an addition to the concrete
pad area at the Alternate Feed Circuit based on a design which had been submitted to the Executive Secretary
for approval The Utah Division of Radiation Control ( DRC ) approved the proposed pad design in a letter
dated September 30 2011 The pad was constructed and the new concrete was set to cure dunng the first two
weeks of October 2011 Dunng a visit to the Mill on October 4 2011 DRC staff noted that the pad
construction then in process complied with the approved design plan At the time of the October 18 2011
Storm Water Inspection the as built submitted to the Executive Secretary had not yet been approved and the
new concrete area had not yet been placed into service DRC subsequently approved the as built drawing in a
letter dated October 24 2011
However although this new addition is intended to provide more maneuvering space for staging of alternate
feed drums and for opening emptying and processing such drums there was nevertheless sufficient
previously built and approved concrete surface area available for all the drums in use or staged at the alternate
feed area at the time of the inspection It was therefore not necessary for any drums to have been placed
directly on the ground surface at the time of the inspection
The root cause of the violation was not the lack of adequate concrete surface area but that the alternate feed
operators had just recently been transferred to the alternate feed circuit and did not understand that the Permit
does not permit the placement of non water tight drums on the ground surface New operators had been
rotated mto the alternate feed processing area for the alternate feed processing campaign The newly assigned
operators opened and emptied or partially emptied a number of feed drums for the alternate feed batch
placing some of the emptied open drums on the engineered concrete pad and eight additional drums onto the
ground surface
2 b Corrective Steps Taken to Prevent Re Occurrence ofthe Non Compliance
All alternate feed area operators have been retrained to understand which types of drums are required to be
placed on an approved hardened surface and not directly on the ground surface
In addition Denison has sought a further expansion of the alternate feed area concrete pad to accommodate
the number of drums anticipated for the spnng 2012 alternate feed processing schedule in a manner that
provides more maneuvenng space for handling the drums and that will reduce the chance that any damaged
drums will inadvertently be placed directly on the ground surface Denison submitted an engineering design to
DENISO
MINES
J9ii
Letter to Mr Rusty Lundberg
Order Docket No UGW12 01
April 12 2012
Page 3
the Executive Secretary for approval on March 27 2012 At the time of this wnting Denison is awaiting
Executive Secretary approval of the design To prevent future non compliance the spring alternate feed
processing program will be delayed until the approval is received and the expansion of the concrete pad is
constructed cured and placed into service
2 c Date When Compliance Was/Will Be Achieved
Compliance was achieved dunng the week of October 18 2011 when the eight drums placed on the ground
surface were removed from the ground surface and placed on the existing concrete surface Following
approval of the concrete pad expansion as built on October 24 2011 the expanded concrete area was placed
into service Feed drums for the spnng 2012 processing campaign are either on the existing expanded
concrete pad or are in the alternate feed storage area awaiting approval and construction of the proposed
expansion of the alternate feed processing area concrete
Violation 2
Part I D 10 of the Permit by failing to manage all contact and non contact storm water in accordance with the
currently approved Storm Water Best Management Practices Plan ( SWBMPP ) Specifically DUSA violated
Section 2 0 of the SWBMPP by failing to provide an adequate ditch and diversion system to channel and
contain the surface runoff to the tailings management system
1 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 QAP)
Denison pumped the water in the overfilled sump to the New Decontamination Pad sump as originally
designed and repaired the failed berm that resulted in the apparent discharge observed by DRC dunng the
October 2011 inspection
2 a Root Cause of the Non Compliance
In 2010 Denison constructed a paved surface drainage ditch designed to dram the area east of the New
Decontamination Pad The drainage ditch was intended to prevent accumulation of run on water on the
roadway east of the New Decontamination Pad used by reagent delivery trucks in an effort to minimize muddy
conditions that could anse after heavy rainfall The surface ditch conveyed run on water to a sump surrounded
by an earthen berm near the southeast corner of the ore storage pad When filled the sump is emptied by
means of a sump pump through a Drisco pipeline and the pumped water is returned to the New
Decontamination Pad sump
The Mill expenenced high rainfall during October 2011 One of the rainfall events overtopped both the surface
ditch and the collection sump before Mill operations personnel were able to activate the pump return system to
empty the sump The overtopping resulted in breakdown and carryover of berm soils and water creating the
nils and carryover observed by DRC dunng the October 2011 inspection
2 b Corrective Steps Taken to Prevent Re Occurrence of the Non Compliance
Denison has implemented more frequent inspections of the ditch and sump system and more frequent
pumping/emptying of the sump dunng and after rainstorm events to prevent a recurrence of the overflow
situation
DENISO
MINES
Letter to Mr Rusty Lundberg
Order Docket No UGW12 01
April 12 2012
Page 4
2 c Date When Compliance Was/Will Be Achieved
Compliance was achieved during October 2011 when the overfilled sump was pumped out to the New
Decontamination Pad The overtopped soil berm was subsequently repaired durmg planned maintenance
activities in Apnl 2012
Violation 3
Part I D 10 of the Permit by failing to provide adequate active operational measures to discover prevent
control contain and clean up spills of kerosene outside of the secondary containment located north of the shop
building
1 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 of the QAP)
Denison moved the kerosene tank to a location within the existing concrete lined and walled pad from which it
would no longer dnp outside the concrete pad area
2 a Root Cause of the Non Compliance
The kerosene storage tank in question consists of a horizontal tank on a metal saddle with a hose and pump
system all of which are located on an existing concrete pad surrounded by a 2 V2 foot concrete wall The drum
and drum saddle had been moved by operations personnel to a position near the wall that resulted in the hose
and pump handle being directly above the wall When the hose and handle system dnpped kerosene as it was
used the drips fell outside the concrete pad area on and along the outside edge of the wall Dunng the
October 2011 inspection DRC observed staining on the wall and spillage on the soil outside the concrete pad
area which had resulted from the hose and pump dripping onto the wall
2 b Corrective Steps Taken to Prevent Re Occurrence ofthe Non Compliance
Dunng March of 2012 Denison moved the tank and saddle and its associated hose and pump such that the
entire system is within the concrete pad area and no part is on or above the wall
2 c Date When Compliance Was/Will Be Achieved
Compliance was achieved dunng the October 2011 inspection when the visibly stained soils outside the
concrete pad and wall were removed and disposed m the tailings cells The tank saddle and pump were
subsequently moved further back inside the concrete pad area and the stained concrete wall was brush
scrubbed dunng planned maintenance activities in March 2012
Violation 4
Part I D 10 of the Permit by failing to provide adequate active operational measures to discover prevent
control contain and clean up spills of oil from drums stored on racks east of the shop building
1 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 of the QAP)
DENISO
MINES
Letter to Mr Rusty Lundberg
Order Docket No UGW12 01
Apnl 12 2012
Page 5
The Mill s three honzontal oil drum racks have been removed from service Oil drums from ail three of the racks
have been removed and placed upnght in individual oil spill prevention pallets
2 a Root Cause of the Non Compliance
The Mill formerly stored unopened oil drums for maintenance or Mill area use on one of three honzontal two tier
racks outside the maintenance area Each rack had an attached drip collection pan below and in front of the
rack to collect any leaked fluids from the bungs or caps of the horizontal drums One of the racks with its
attached dnp pan was placed on uneven ground such that the rack and plan tilted down at one end Leaked
fluids accumulated at the lower end of the tilted pan and overtopped the pan at the low end staining the
surrounding soils
2 b Corrective Steps Taken to Prevent Re Occurrence ofthe Non Compliance
Dunng the October 2011 inspection the spilled fluids were collected from the dram pan and the stained soils
outside the collection pan were removed and disposed in the tailings cells The honzontal drum racks were
removed from service and the drums placed upnght in new individual spill prevention pallets dunng planned
maintenance activities in March 2012
2 c Date When Compliance Was/Will Be Achieved
Compliance was achieved during the October 2011 inspection when the spilled fluids and stained soils were
removed and disposed in the tailings cells
Violation 5
Part I D 10 of the Permit by failing to control contact wash water by effective operational measures at the New
Decontamination Pad near the scale house
Denison Response
1 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 QAP)
Mill maintenance staff has provided ongoing repairs to the New Decontamination Pad pump packing to
minimize recirculation water leakage The New Decontamination Pad recirculation pump also requires
extension of the concrete footing to increase the area covered by concrete and minimize the bare ground
surface adjacent to the pump piping that could be exposed to any recirculation water leakage
2 a Root Cause of the Non Compliance
The New Decontamination Pad wash water pump is positioned on a small concrete footing which is set directly
on bare ground Leaks from packing in the pump which are not directly above the concrete footing can reach
the bare ground surface Due to the nature of the pumps service it has not been possible to ensure zero
leakage of packing and joints 100 percent of the pumps service hours As a result additional concrete
coverage to protect soil from occasional leaks of re circulated wash water from the pump will be required
DENISO
MINES
Letter to Mr Rusty Lundberg I
Order Docket No UGW12 01 ^
April 12 2012
Page 6 ^
2 b Corrective Steps Taken to Prevent Re Occurrence of the Non Compliance
Denison has prepared a design modification to the New Decontamination Pad pump system A design drawing
has been provided as Attachment 1 to this submittal The system modification will be constructed within 15
days of Denison s receipt of the Executive Secretary s approval of the design drawings
I'
2 c Date When Compliance Was/Will Be Achieved '
Compliance will be achieved when the modification is constructed within 15 days of receipt of the Executive
Secretary s approval fo the design drawings
Please contact me 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
Dan Hillsten
Harold R Roberts
David E Turk
KathenneA Weinel
DENISO
MINES
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Letter to Mr Rusty Lundberg
Order Docket No UGW12 01
April 12 2012
Page 7
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