DRC-2012-001724 - 0901a068802f9d89

Jo Ann Tischler
Page 2

2. The DUSA Spill Prevention, Control, and Countermeasures Plan, Part 1.6.1 requires the
documentation of a daily inspection of the propane tanks. Please include the inspection
findings with the daily inspection form used for storm water inspection documentation
within 30 days from your receipt of this letter.

Notice of Enforcement Discretion

1. The Utah Ground Water Permit, Permit No. UGW370004, Part I.D.10 requires that “the
Permittee will manage all contact and non-contact stormwater and control contaminant
spills at the facility in accordance with the currently approved Stormwater Best
Management Practices Plan.” The approved Best Management Practices Plan, Appendix
1, Part 1.11 Personnel Training and Spill Prevention Procedures requires that “all new
employees are instructed on spills at the time they are employed and trained. They are
briefed on chemical and petroleum spill prevention and control. They are informed that
leaks in piping, valves, and sudden discharges from tanks should be reported immediately.
Abnormal flows from ditches or impoundments are of immediate concern. In addition, a
safety meeting is presented annually by the Environmental Health and Safety Manager to
review the SPCC plan.” Additionally, Part 1.11.1 Training Records requires that
“Employee training records on chemical and petroleum spill prevention are maintained in
the general safety training files.”

During the June 21, 2012 White Mesa Mill stormwater inspection, the DRC inspectors
requested copies of the training records required by the SWPPP as well as a course outline
for the material presentations, in response they received;

A. Copies of certification forms from the Environmental Protection Manual, Section
3.1, Appendix C regarding certification that the undersigned received instruction of
the tailings system including documentation of daily tailings inspections, analysis
of potential problems and notification procedures and safety (3 forms total), and,
B. A Copy of Appendix B of the Environmental Protection Manual, Section 3.1
“Tailings Inspector Training” which includes an outline of the training program.

Per review of the provided documents DRC noted that the training did not provide
instruction for items required by the Permit Part I.D.10 or any other topics related to spill
prevention, control or storm water pollution prevention. Additionally, it was noted that no
records for new employees were provided, only three forms were provided for the
following employees: David Turk, Tanner Holliday and Garrin Palmer. DUSA is in
violation of the Permit Part I.D.10 for failing to provide employee training as required by
the SWPPP.

DRC is extending enforcement discretion regarding this violation based on:

A. This was the first time that DRC has reviewed the training syllabus, and,
B. DUSA will comply with the Confirmatory Action section, item 2 below which
requires the development of a training program in compliance with the Permit
within the specified time-line.
Jo Ann Tischler
Page 3

Confirmatory Actions:

Per an August 2, 2012 telephone close-out conference call, the following confirmatory actions and
timelines were agreed to:

1. Storm Water Best Management Practices Plan (SWBMPP) -- DRC notes that a complete
copy of the October, 2011 Revised SWBMPP (including all appendices) in both hard copy
and text searchable electronic format (PDF) has not been received. This was requested per
a DRC March 7, 2012 Request for Information Letter, which also provided approval of the
October, 2011 SWBMPP. A full copy was requested since the attachments were not
included; DRC noted that the Spill Prevention, Control and Countermeasure Plan
(Appendix 1 of the SWBMPP) was under review; and that the Emergency Response Plan
was not submitted due to there being no changes. DUSA will submit a complete revised
SWBMPP for DRC Files within 30 days of receipt of this letter.

2. Storm Water Inspector Training – DUSA will implement a training program in compliance
with the SWBMPP Appendix 1, Part 1.11 and will provide DRC a copy of the course
syllabus, training calendar, and commitment to maintain training logs/certificates at the
Mill within 60 calendar days of receipt of this letter.

DRC also notes that per a letter submitted to the Director by DUSA (dated October 17,
2011) in response to a DRC RFI (dated September 1, 2011), page 2 Item 3. DUSA
provides information regarding the newly implemented internal notification process for
small quantity spills and commits that “all Mill employees will be trained to advise Mill
environmental personnel of any spills that they observe during the day, and these will also
be noted in the daily inspection form.” Although the DUSA letter does not specify how the
information will be provided to the Mill employees, DUSA has agreed that this
information will be provided during the newly implemented SWBMPP training.

3. Solvent Extraction (SX) Building Roof Drainage Improvements – Comments regarding
needed improvements to the SX building roof drain system have been ongoing since 2009.
Per the 2012 inspection, issues related to the roof drainage and discharges into the
alternate feed circuit have not been addressed. DUSA agrees to upgrade the SX building
roof drainage to prevent potential standing water on the ground within 60 calendar days of
receipt of this letter. Specifically, DUSA will provide appropriate drainage control for
roof areas depicted in photograph 30 of the Memo (north-west section of the building) and
will provide documentation to DRC regarding follow-up actions undertaken.

4. Based on DRC review of the DUSA May 4, 2012 letter “Response to Claricone Solution
Spill” it was noted that confirmation soil sampling was not conducted to ensure that all
contaminated soil had been removed. Excavation of contaminated material was based on
visual examination and gamma surveying (microR meter) only. DUSA will submit to
DRC either: