DRC-2012-001564 - 0901a068802e22f9

State of Utah
GARY R HERBERT
Governor
GREG BELL
Lieutenant Govemor
CERTIFIED MAIL
RETURNED RECEIPT REQUESTED
,2012-001564
Department of
Environmental Quality
Amanda Smith
Exeattive Director
DIVISION OF RADIATION CONTROL ^
Rusty Lundberg p-|
Director LO
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May 30, 2012 § a
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U.S. Postal Service TM
CERTIFIED MAIL™ RECEIPT
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Certified Fee
Mr. David C. Frydenlund
Vice President, Regulatory Affairs and Counsel
Denison Mines (USA) Corp. (DUSA)
Independence Plaza, Suite 950
1050 Seventeenth Street
Denver, CO 80265
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RE 5/30/12, NOV & Compliance orS / DH
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 (or Instructions
Subject: Plan of Action and Work Schedule Revision 1 For the Installation of One or More Wells
Downgradient of TW4-4 and TW4-6: Notice of Violation and Compliance Order, Docket
No. UGW12-05
Dear Mr. Frydenlund:
Tlie enclosed Notice of Violation and Compliance Order (hereafter "NOV/CO") is based The Division of
Radiation Control review of the JVJute Mesa Uranium Mill Chlorofonn Monitoring Report 4th Quarter
(October through December) 2011 and review of the requirements in DUSA Plan of Action and Work-
Schedule Revision 1 For the Installation of One or More Monitonng Wells Downgradient ofT}V4-4 and
TW4-6, dated October 3, 2011. 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 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, Director ofthe Utah Divison of Radiation Control, 168 North 1950 West, P.O. Box
144850, Salt Lake City, Utah 84114-4850.
Sincerely,
Rusty Lundberg
Director
Enclosure: Notice of Violation and Order, Docket No. UGW12-05
195 North 1950 West • Salt Lake City, UT
Mailing Address P O Bo.x 144850 • Salt Uke City, UT 841 14-4850
Telephone [phone] • Fax [phone] 'TDD [phone]
ww^v deq Utah gov
Pnnted on 100°o recycled paper
UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY
IN THE MATTER OF j DOCKET NUMBER UGW12-05
Denison Mines (USA) Corp. NOTICE OF VIOLATION AND
1050 SEVENTEENTH ST. SUITE 950 | COMPLIANCE ORDER
DEN^R^COLORADO, 80265 \
A. STATUTORY AUTHORITY
This NOTICE OF VIOLATION and COMPLL\NCE ORDER (NOV/CO) is issued to
Denison Mines (USA) Corporation (hereinafter DUSA) facility, by the Director ofthe Utah
Division of Radiation Control (hereinafter the DIRECTOR) 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, Utah Code Ann. §§ 63G4-101 to 63G-4-601 and Administrative Procedure
Rules, Utah Admin Code R305-6.
Under the Water Quality Act, Utah Code Title 19, Chapter 5, ''Director" for purposes of
groundwater quality at a facility licensed by and under the jurisdiction ofthe Division of
Radiation Control, means the Director ofthe Division of Radiation Control. Utah Code Ann. §
19-5-102(6).
The DIRECTOR may enforce rules made by the Water Quality Board through the issuance of
orders, which orders may include:
(i) prohibiting or abating discharges of wastes into the waters ofthe state;
(ii) requiring the construction of new control facilities or any parts of them or the modification,
extension, or alteration of existing control facilities or any parts of them, or the adoption of other
remedial measures to prevent, control, or abate water pollution; or
(iii) prohibiting any other violation of Title 19 Chapter 5 or rules made under Chapter 5.
Utah Code Ann. § 19-5-106(2)(d)
B, APPLICABLE STATUTORY AND REGULATORY PROVISIONS
1. On August 23, 1999 the DIRECTOR on behalf of the Water Quality Board issued a
Notice of Violation and Groundwater Corrective Action Order, Docket No. UGW2-01
regarding groundwater contamination of chloroform at the White Mesa Uranium Mill.
2. The DUSA Plan of Action and Work Schedule Revision I For the Installation of One or
More Monitoring Wells Downgradient ofTW4-4 and TW4-6 (hereafter "Plan") was
conditionally approved by the DIRECTOR on September 22, 2011.
3. Section 1.1.1 ofthe Plan requires: ''Provided there is sufficient saturated thickness,
Denison will perform a hydraulic test at TJV4-27 to •
a) Calculate permeabilities and hydraulic conductivities; and
Docket No UGW 12-05 Pagel
b) Calculate local groundwater velocities. Such aquifer testing will be described in a
report (the "Hydrogeologic Report") that will be submitted to the Executive
Secretary. "
4. Section 2(a) of the Plan requires: ''TW4-27 will be installed within 30 days after receipt
of Executive Secretary approval of this Plafj. An as-built report, along with the
Hydrogeologic Report, will be submitted to the Executive Secretary within 60 days after
the date of such approval. "
5. Section 2(b) of the Plan requires: ''Quarterly water level measurements and sampling will
commence during the next regularly scheduled chloroform sampling campaign after
installation of the well. A determination of whether or not the criteria specified in
paragraph 1.2 above have been satisfied with the addition ofTW4-27 will be made after
receipt of two quarters of water level arid chloroform data. A decision whether or not to
abandon TW4-I4 will also be made by Denison and the Executive Secretaty at that
time. "
C. FINDINGS OF FACT
1. The DUSA facility receives and processes natural uranium-bearing ores and certain specified
altemate feed materials, and possesses byproduct matenal 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.
2. On August 23, 1999 DUSA was issued a Notice of Violation and Order, Docket No.
UGW20-01 fi-om the Utah Water Quality Board regarding groundwater contamination of
chloroform discovered on the White Mesa Uranium Mill near Blanding Utah.
3. On May 26, 2011 DUSA was sent a Request for Information, requesting that DUSA:
"Submit for the Executive Secretary approval a plan of action and work schedule to complete
the installation of one or tnore wells in locations hydraulically downgradient of wells TW4-4
and TW4-6 to demonstrate the plume is bound and to assure that the plume is hydraulically
being captured in this vicinity. "
4. DUSA submitted the Plan and Work Schedule on June 17 2011. The Plan identified a new
well to be installed (TW4 27).
5. On September 22, 2011 the DIRECTOR conditionally approved the Plan on the condition
that DUSA modify item 2(c) of the Plan with the wording contained in the Conditional
Approval Letter and send a revised copy of the Plan to the DIRECTOR within 7 working
days of receipt of the letter. DUSA submitted the revised plan on October 3, 2011.
Docket No UGW 12-05 Page 2
6. In a letter to the DIRECTOR dated November 28, 2011, Re: State of Utah Ground Water
Discharge Permit No. UGW WJiite Mesa Uranium Mill - Installation Report Pursuant to
Part I.F. 6 of the Permit, DUSA stated that well TW4-27 was mstalled on October 18, 2011.
7. On February 27, 2012 DUSA submitted to the DIRECTOR the Wliite Mesa Uranium Mill
Chlorofonn Monitoring Report 4'^ Quarter (October through December) 2011 (hereafter
"Report").
8. Contrary to Section 2(b) ofthe Plan, the Report showed that well TW4-27 was not sampled
in the 4"^ quarter, 2011 chloroform monitoring event that occurred from November 14
through December 8, 2011, as required.
9. Contrary to Section 2(a) ofthe Plan, as ofthe date ofthis NOV/CO, DUSA has not
submitted a Hydrogeologic Report for well TW4-27 for DIRECTOR approval, which was
due within calendar 60 days of the DIRECTOR approval of the Plan.
D. VIOLATIONS
Based on the foregoing FINDINGS OF FACT, DUSA is in violation of the following:
1. Section 2(a) of the Plan for failing to submit a Hydrogeologic Report within calendar 60 days
ofthe DIRECTOR approval ofthe Plan.
2. Section 2(b) of the Plan for failing to sample well TW4-27 in the next regularly scheduled
chloroform sampling campaign, which would have been the 4th quarter 2011 chloroform
monitoring event.
E. ORDER
In view of the foregoing FINDINGS, and pursuant to Utah Code Annotated §§ 19-5-106(d) and
19-5-115 DUSA is hereby ordered to:
1. Immediately initiate all actions necessary to achieve compliance with Plan.
2. Submit a report to the DIRECTOR within 30 calendar 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 of the noncompliance,
c. Date when compliance was/or will be achieved.
F. NOTICE
Docket No. UGW 12-05 Page 3
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
apply in a settlement. Providing false information may subject DUSA to fiarther 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 willfulness or
gross negligence, violators may be fined up to $25,000 per day of violation.
G. CONTESTING THIS NOV/CO
This NOV/CO is effecfive immediately and shall become final unless your written contest to this
NOV/CO is received by the DIRECTOR within thirty (30) calendar days after the date this
NOV/CO was signed. See Utah Admin Code R305-6-106 and R305-6-202. Any fiirther
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 wrifing and must comply with Utah Admin Code
R305-6-202, which requires, among other things, that you state your factual and legal reasons for
disagreeing with the Nofice of Violafion or Compliance Order, and that you state the action that
you would like the agency to take.
A response contesfing this NOV/CO must be received by the DIRECTOR within 30 calendar
days of receipt ofthis NOV/CO.
(Mailing address) (Address for by-hand or ovemight delivery)
Rusty Lundberg, Director
Utah Division of Radiation Control
195 North 1950 West
P.O. Box 144850
Sah Lake City, UT 84114-4850
Rusty Lundberg, Director
Utah Division of Radiation Control
195 North 1950 West
Salt Lake City UT, 84116
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 May, 2012
UTAH DIVISION OF RADIATION CONTROL
Rusty Lundberg
Director
Docket No UGW 12-05 Page 4