DRC-2012-001961 - 0901a0688030adfe

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State of Utah
GARY R HERBERT
Governor
GREG BELL
Lieutenant Governor
Department of V r,^^
Environmental QualityJL
Amanda Smith
Executive Director
DIVISION OF RADIATION CONTROL
Rusty Lundberg
Director
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September 10,20
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2012-001961
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Re NOV & Order/DH
Mr David C Frydenlund
Energy Fuels Resources (USA), Inc
225 Union Blvd, Suite 600
Lakewood, CO 80228
Mr David C Frydenlund
Vice President, Regulatory Affairs, Counsel, and Corp Secretary
Energy Fuels Resources (USA), Inc
225 Union Blvd , Suite 600
Lakewood, CO 80228
PS Form 3100. August 2006 See Reverse for Instructions
Subject Demson Mines (USA) Corp (DUSA) White Mesa Uranium Mill, near Blanding, Utah
Notice of Violation and Compliance Order, Docket No. UGW12-05: DRC Findings and
Closeout
Dear Mr Frydenlund
The Utah Division of Radiation Control (DRC) has reviewed the July 3,2012 DUSA letter report titled
''Plan ofAction 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 NoUGW12-05 " that responded to
the May 29, 2012 Notice of Violation and Compliance Order, Docket No UGW12-05 (NOV) DUSA
officially changed its name to Energy Fuels Resources (USA), Inc (EFR) on July 25, 2012, however,
because the onginal NOV was issued to DUSA, this letter will refer to DUSA rather than EFR
Based on the review ofthe DUSA July 3, 2012 response to the NOV, the DRC has determined the
following
Violation 1
Violation 1 states. DUSA is in violation of the followmg "Section 2(a) of the Plan for failing to
submit a Hydrogeologic Report within calendar 60 days Of the DIRECTOR approval ofthe Plan
Plan Section 2(a) states "TW4-2 7 will be installed within 30 days after receipt of Executive Secretary
approval of this Plan 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 "
The DRC confirmed that DUSA submitted, as required, the Hydrogeologic Report on November 28,2011
Therefore, Violation 1 is hereby retracted
195 North 1950 West • Salt Lake City, UT
Mailing Address P O Box 144850 • Salt Lake City, UT 84114-4850
Telephone [phone] • Fax [phone] 'TDD [phone]
www deq Utah gov
Pnnted on 100% recycled paper
Page 2
Violation 2
Violation 2 states. DUSA is in violation of the following "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 "
Plan Section 2(b) states "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 and chloroform data
A decision whether or not to abandon TW4-14 will also be made by Denison and the Executive
Secretary at that time "
Well TW4-27 was installed on October 18, 2011 The 4th quarter, 2011 chloroform monitonng event
occurred between November 14 and 28, 2011 Therefore, DUSA had at least 40 calendar days between
well installation and the end of the scheduled 4* quarter 2011 chloroform monitoring event, which was
sufficient time to conduct well development and aquifer testing activities at TW4-27 pnor to the said
monitonng event Therefore, Violation 2 will stand as wntten After considenng the possible enforcement
options, the Director has determined not to seek a penalty at this time on the basis that this was the first
time this problem has been cited and that sampling began in well TW4-27 m the 1^* quarter 2012 The
DRC now has two quarters of sampling data in this well However, should this violation be repeated in the
future a penalty may be assessed
Thank you for your cooperation in this matter If you have any questions or comments regarding this
letter, please contact Dean Henderson at [phone]
Sincerely,
Rusty Lundberg
Director