DRC-2012-001628 - 0901a068802e84bb

DENISO
MINES
RC-2012-001628
Denison Mines (USA) Corp
105017th Street, Suite 950
Denver, CO 80265
USA
Tel [phone]
Fax 303 389<4125
www denisonmines com
July 3, 2012
VIA PDF AND FEDERAL EXPRESS
Mr Rusty Lundberg
Director of the Utah Division of Radiation Control
State of Utah Department of Environmental Quality
168 North 1950 West
PO Box 144850
Salt Lake City, UT 84114-4850
Dear Mr Lundberg
Re Plan of Action and Work Schedule Revision 1 for the Installation of One or More Wells
Downgradient of TW4-4 and TW4-26 - Notice of Violation and Compliance Order, Docket No
UGW12-05
This letter is in response to the foregoing Notice of Violation (the "Notice") dated May 30, 2012, which
Denison Mines (USA) Corp ("DUSA") received on June 4, 2012 The Notice lists two violations (the
"Violations") of the White Mesa Mill's (the "Mill's") Plan of Action and Work Schedule Revision 1 for the
Installation of One or More Wells Downgradient of TW4-4 and TW4-26 (the "Plan"), based on a review of
the Mill's Chloroform Momtonng Report for the 4*^ Quarter of 2011
Pursuant to Utah Code Annotated 19-5-111 (1953 as amended), this letter addresses
a) the root cause of the noncompliance,
b) steps that have been or will be taken to correct the violation,
c) date when compliance was or will be regained, and
d) steps taken or to be taken to prevent reoccurrence of the noncompliance
DUSA responds as follows
1 Section 2( a) of the Plan for failing to submit a Hydrogeologic Report within calendar 60 days of
the Director approval of the Plan
a) Root Cause of the Noncompliance
DUSA respectfully submits that Violation Number 1 is in error and should be retracted
Denison submitted the Hydrogeologic Report on November 28, 2011 as required via email and submitted
hardcopies via overnight delivery Attachment 1 includes copies of the transmittal e-mail from November
28, 2011 as well as the Federal Express delivery confirmation information for the hardcopies In a
telephone conversation with DRC Staff on June 5, 2012, DRC confirmed e-mail receipt of the
Hydrogeologic Report on November 28, 2011
b) Steps That Have Been Taken to Correct the Violation
Letter to Mr Rusty Lundberg
July 3, 2012
Page 2
DUSA believes it is already in compliance with the requirements for delivery of the Hydrogeologic Report
and no violation has occurred
c) Date When Compliance Was or Will be Regained
DUSA believes it is already in compliance with the requirements for delivery of the Hydrogeologic Report
and no violation has occurred
d) Steps Taken to Prevent Reoccurrence of the Noncompliance
DUSA believes it is already in compliance with the requirements for delivery of the Hydrogeologic Report
and no violation has occurred
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
Denison believes that well TW4-27 was sampled at the soonest possible time given the well development
requirements and the hydraulic testing requirements specified by DRC and that this violation should be
retracted
a) Root Cause of the Noncompliance
1 Facts and Background Information
a) Well TW4-27 was installed October 18, 2011 As the well produced no water during installation,
but moist sands were encountered in the cuttings, the well was allowed to stabilize for several
weeks to determine if sufficient water would enter the well to perform hydraulic testing and
development activities
b) New wells installed at the Mill are developed using surging and bailing and overpumping
techniques as specified in DRC correspondence dated June 1, 2010 Based on Denison's
understanding of the DRC requirements for development, valid samples cannot be collected
from new wells pnor to the completion of all development activities
c) Per the Groundwater Discharge Permit ("GWDP"), Part I F 6 (c), groundwater as-built reports
must include aquifer permeability data including field data, data analysis, and interpretation of
slug test, aquifer pump test or other hydraulic analysis to determine local aquifer hydraulic
conductivity in each well
d) The Plan dated October 3, 2011 required that TW4-27 be installed within 30 days of approval of
the Plan The October 3, 2011 Plan also required that the as-built report along with the
Hydraulic Report for TW4-27 be submitted to the Executive Secretary within 60 days of
approval of the Plan, that is, by December 3, 2011
e) Following the submission of the October 3, 2011 Plan, Denison proceeded with the installation
of TW4-27 and the development and hydraulic testing activities to meet the required schedule
in the October 3, 2011 Plan TW4-27 was installed on October 2011, in compliance with the
Plan
f) The first step of the development of TW4-27, using surging and bailing, was initiated on
November 8, 2011 Well development was temporanly suspended to allow hydraulic testing to
be completed in time to prepare the hydraulic report by the required December 3, 2011
submittal date
DENISO
MINES
Letter to Mr Rusty Lundberg
July 3, 2012
Page 3
g) Following hydraulic testing, well development was resumed Development by surging and
bailing was completed on November 29, 2011 Development by over-pumping was initiated on
December 20, 2011 and completed on January 5, 2012
h) The routine chloroform sampling for the fourth quarter 2011 was scheduled and conducted
starting the week of November 14, 2011 Due to the Thanksgiving holidays, the routine fourth
quarter sampling was completed the week of November 28, 2011 Energy Laboratories missed
the holding times on several samples due to the Thanksgiving holidays and resampling of
selected chloroform samples was completed dunng the week of December 6, 2011
i) Development of TW4-27 was completed and TW4-27 was suitable for collection of valid
samples after January 5, 2012, that is, after the fourth quarter had ended and the sampling for
the fourth quarter of 2011 had been completed The first quarter in which TW4-27 was suitable
for collection of valid samples was first quarter 2012 TW4-27 was sampled during the first
quarter 2012
Denison believes that, given the requirement to produce and report hydraulic testing data and to
complete the full range of well development activities required prior to initial sampling, it was not
possible to collect a valid sample from TW4-27 until the first quarter of 2012, and that TW4-27 was
sampled at the earliest appropriate time penod Denison believes that no violation has occurred and
that Violation Number 2 should be retracted
b) Steps That Have Been Taken to Correct the Violation
DUSA believes it is already in compliance with the requirements of the Plan and no violation has
occurred
c) Date When Compliance Was or Will be Regained
DUSA believes it is already in compliance with the requirements of the Plan and no violation has
occurred
d) Steps Taken to Prevent Reoccurrence of the Noncompliance
DUSA believes it is already in compliance with the requirements of the Plan and no violation has
occurred
If you have any questions or require any further information, please contact the undersigned
Yours very truly,
DUSA MINES (USA) CORP
fo Ann Tischler
Director, Compliance and Permitting
CO David C Frydenlund
Phillip Goble
Dan Hillsten
Harold R Roberts
David E Turk
Kathenne Weinel
DENISO
MINES
Letter to Mr Rusty Lundberg
July 3, 2012
Page 4
ATTACHMENT 1
Hydrogeologic Report Transmittal/Delivery Information
DENISO
MINES
Kathy Weinel
From:
Sent:
To:
Co:
Subject.
Attachments:
Kathy Weinel
Monday, November 28, 2011 2 51 PM
rlundberg@utah gov
Dean Henderson, Dan Hillsten, David Frydenlund, Ron Hochstein, Harold Roberts, Jo Ann
Tischler, David Turk, Ryan Palmer, N Tanner Holliday, Garnn Palmer, Stewart Smith
As-Built Report for Perched Momtonng Well TW4-27
tw4-27 trans ltr_11 28 11 pdf, TW27 Installation Report pdf
Dear Mr Lundberg,
Attached please find the Denison Mines (USA) Corp's As-Built report for TW4-27 at the White Mesa Mill, in Blanding
Utah
If you have any questions regarding this transmittal please feel free to call me
Kathy Weinel
FW: FedEx Shipment 795449639409 Delivered
Tanya Bentley
Sent:Wednesday, June 20, 2012 4 15 PM
To: Stewart Smith
Here you go
Tanya Bentley
Corporate Secretary
Hydro Geo Chem, IIK
From: [e-mail] [mailto.trackingupdates@fedex com]
Sent: Tuesday, November 29, 2011 10 03 AM
To: Tanya Bentley
Subject: FedEx Shipment 795449639409 Delivered
This tracking update has been requested by
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HYDRO GEO CHEM
Tanya Bentley
tanyab@hgcinc com
Our records indicate that the following shipment has been delivered
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Reference
Ship (P/U) date
Delivery date
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7180000 T2 0 TKB
7180000 12 0 SJS
Nov 28, 2011
Nov 29, 2011 9 43 AM
S HANSON
SALT LAKE CITY, UT
Receptionist/Front Desk
FedEx Priority Overnight
FedEx Pak
1
2 00 lb
Direct Signature Required
Deliver Weekday
Tracking number 795449639409
Shipper Information
Tanya Bentley
HYDRO GEO CHEM
51 W Wetmore Rd
Ste 101
Tucson
AZ
US
Recipient Information
Rusty Lundberg
UDEQ
195 N 1950 W
SALT LAKE CITY
UT
US
84116
85705
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