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Home My WebLink AboutDRC-2010-003526 - 0901a06880190b27DENISO MINES June 7, 2010 VIA PDF AND FEDERAL EXPRESS Dane L. Finerfrock, Co-Executive Secretary Utah Water Quality Board Utah Department of Environmental Quality 168 North 1950 West P.O. Box 144810 Sah Lake City, UT 84114-4810 Dear Mr. Finerfrock: Denison Mines (USA) Corp. 105017th Street SuHa 950 Denver, CO 80205 USA Tel: 303 628-7798 Fu: 303389-4125 www.denisoiiinlna8.cani Re: State of Utah Ground Water Discharge Permit No. UGW370004 White Mesa Uranium Mill - Notice Pursuant to Part I.G.3 of the Permit, Utah Radioactive Materials License No. UT1900479, and Utah Adniinistrative Code ("UAC") R317-6-6.16(C)(l) Please take notice pursuant to the Part I.G.3 of the White Mesa Mill's (the "Mill's") State of Utah Groundwater Discharge Permit No. UGW370004 (the "Permit"), Utah Radioactive Materials License No. UTl900479 (the "License"), and Utah Administrative Code ("UAC") R317-6-6.16(C)(1) ?hat Denison Mines (USA) Corp., as operator ofthe Mill and holder of the Permit and License, failed to meet the standards in Condition 11.3 of the License, by accumulation of "sufficient fluid in the leak detection system" ("LDS") of Cell 1, as described in more detail below. The accumulation of fluid in the LDS was discovered at 2:50 PM on Wednesday, June 2, 2010. Sufficient fluid had accumulated by 8:25am Thursday, June 3 to permit collection of samples and initial pH testing to ascertain whether the fluid originated from the disposal cell. The initial pH testing in at 8:45am on June 3 indicated that the liquid originated from the disposal cell. Initial notice of this accumulation of liquid in the LDS was given by telephone to the Utah Department of Environmental Quality Executive Secretary at 2:48pm on Thursday June 3, 2010 (within 24 hours of the discovery and within 7 hours of determination of the origin of the fluid). Facts and Background Information a) Condition 11.3 of the Mill's State of Utah Radioactive Materials License No. UTl900479 (the "License") requires that licensee implement a leak detection monitoring system for each of the tailings cells. According to condition 11.3: (i) The licensee shall measure and record the "depth to fluid" in each of the tailings disposal cell standpipes on a weekly basis. If sufficient fluid is present in the leak detection system (LDS) of any cell, the licensee shall pump fluid from the LDS, to the extent reasonably possible, and record the volume of fluid recovered. Any fluid pumped from an LDS shall be retumed to a disposal cell. (ii) If fluid is pumped form an LDS, the licensee shall calculate the flow rate by dividing the recorded volume of fluid recovered by the elapsed time since fluid was last pumped or increases in the LDS fluid levels were recorded, whichever is the more recent. The licensee shall document the results of this calculation. (iii) Upon the initial pumping of fluid from an LDS, the licensee shall collect a fluid sample and analyze the fluid for pH and the parameters listed in paragraph A of this license conditions. The licensee shall determine whether the LDS fluid originated form the constiments listed in paragraph A of this license condition or has a pH level less than 5.0. If either elevated constiment levels or a pH less than 5.0 is observed, the licensee shall assume that the disposal cell is the origin of the fluid. The above requirements have been incorporated into the Discharge Minimization Technology Plan in Section 3.1 of the Mill's Environmental Protection Manual. b) Condition 11.3 ftirther requires the ongoing weekly measurement of depth to fluid if the calculated leakage flow rate is less than 1 gpm, and additional notification and mitigation requirements if the leakage rate is greater than 1 gpm. c) The Liner Maintenance Provisions appendix of the Mill's DMT Plan describe the types of repairs that will be implemented following identification of a leakage source, as well as requirements for a repair report describing the namre of the damage and the repairs. d) Section 1 .G.3 of the Mill's groundwater Discharge Permit (the "Permit") requires thatin the event that the Permittee fails to maintain DMT or BAT or otherwise fails to meet DMT or BAT standards as required by the Permit, the Permittee shall submit to the Executive Secretary a notification and description of the failure according to R317-6- 6.16(C)(1). Nofification shall be given orally within 24- hours of the Permittee's discovery of the failure of DMT or BAT, and shall be followed up by written notification, including the information necessary to make a determination under R317- DENISO MINES 6-6.16(C)(2), within five calendar days of the Permittee's discovery of the failure of best available technology. e) During the routine tailings inspection performed at approximately 2:50pm on June 2, 2010, the Cell 1 LDS standpipe was observed to have accumulated approximately 7 feet 6 inches of liquid compared to the previous day. The preceding day's recorded observation indicated that the LDS standpipe was "dry" (a measured level of 63 feet 4 inches). f) Liquid levels in the LDS standpipe measured from the time of the initial observation to the time of this notice were as follows: Date Time Conditions Approximate Depth to Liquid Level Calculated Leakage rate 06y2y2010 14:50 During routine inspection 55 feet 10 inches 6y3y20io 08:25 Before pumping standpipe 55 feet 6 inches 6y3y2oio 08:42 After pumping standpipe 63 feet 4 inches (dry) 6y3y2oio 09:30 Before pumping standpipe 61 feet 9 inches 6y3y20io 09:33 After pumping standpipe 63 feet 4 inches (dry) 0.48 gpm 6y3y20io 14:05 Before pumping standpipe 58 Feet 8 inches 6y3y2oio 14:10 After pumping standpipe 63 feet 4 inches (dry) 0.17 gpm 6y4yy20io 07:50 Before pumping standpipe 57 feet 0 inches 6y4yy2oio 07:59 After pumping standpipe 63 feet 4 inches (dry) 0.05 gpm 6y4yy20io 14:11 Before pumping standpipe 57 feet 5 inches 6y4yy2oio 14:17 After pumping standpipe 63 feet 4 inches (dry) 0.14 gpm 6y7y2oio 10:25 Before pumping standpipe 56 feet 6 inches 6y7y2oio 10:31 After pumping standpipe 63 feet 4 inches (dry) DENISO MINES tDii g) The result recorded from an initial pH paper check on a sample of LDS standpipe fluid was a pH of approximately 2.0 to 3.0. 2. Actions Taken Upon receipt of the initial inspection result, the Mill's Environmental Coordinator notified the Mill Manager at 3:00pm that day. The following plan of action was immediately put into place in accordance with the Liner Maintenance Provisions and Section 3.1 of the Mill's Environmental Protection Manual: a) In accordance with License condition 11.3, pumping of the LDS to dryness, and monitoring of level change with time to estimate leakage rate, began at 8:25am on June 3; b) In accordance with License condition 11.3, the calculated leakage rates estimated since the initial identification of the leakage have not exceeded 1 gpm c) In accordance with License condition 11.3, an initial pH paper test to determine the origin of the liquids was performed at 8:45am on June3. The pH paper indicated an approximate pH of 2.0 to 3.0. Based on this result, it was determined at 8:45am that the LDS liquids originated from the Cell 1 liquids; d) In accordance with License condition 11.3, upon the initial pumping ofthe LDS, samples and duplicates were collected and shipped to Energy Laboratories and America West Laboratories on June 3 for analysis for the fiill suite of groundwater point of compliance analj^ies and parameters; e) Consistent with Section I.G.3 of the Permit, verbal notification was given to the Executive Secretary at 4:48pm on June 3, 2010, within 24 hours of discovery ofthe liquid level and within 9 hours of initial determination that the liquids originated from the cell solutions. The verbal notification was followed by this written notification within five days of discovery; f) Solutions continue to be pumped from Cell 1 to Cell 4A at the time of this notice. 3. Actions That Will be Taken to Prevent a Reoccurrence of this Incident The following actions will be taken to prevent a reoccurrence of this incident: a) The Mill will continue to monitor the rate of leakage into the LDS; DENISO MINES b) The Mill will continue efforts to identify the location of any tear(s) or other source(s) of leakage; c) Once the Mill has identified the location of the tear(s) or source(s) of leakage, any leak, hole or other damage will be repaired by installation of a PVC repair patch, in accordance with the Liner Maintenance provisions appendix of the Mill's DMT Plan; d) A repair report containing a root cause analysis and ftirther recommendations will be submitted to the Executive Secretary within 30 days of the initial telephone notification. 4. Required Reporting As required by the Liner Maintenance Provisions appendix to the Mill's DMT Plan, a repair report will be submitted to the Executive Secretary within 30 days of the initial telephone notification. The repair report will contain, in addition to a root cause analysis, the following elements: • Repair narrative describing the namre of the damage and the repair work completed to repair the damage. • Repair material type used to complete the repair • Repair material description • Post repairs test specifications • Test Methods (ASTM or other) • Daily reports during the repair work • Repair test results • Quality AssuranceyQuality Control Information 5. Affirmative Defense Denison does not believe that any violation of the Mill's groundwater Discharge Permit, Radioactive Materials License, DMT Plan or Liner Maintenance provisions appendix has occurred as a result of this leakage identification. If any potential violation were to be identified, Denison believes that the affirmative defense in Part I.G.3.c) of the Permit should be applicable to this incident, for the following reasons: DENISO MINES a) Notification By virme of the initial oral notification given to the UDEQ Duty Officer at 4:48pm on Thursday June, 2010 (within 24 hours of the discovery) and this written notice, Denison has submitted notificafion according to UAC R317-6-6.13. b) Failure was not Intentional or Caused by the Permittee's Negligence The LDS liquid level was not intentional or caused by Denison's negligence, either in action or in failure to act. The Mill was identified the level change during a routine daily inspection designed to indentify liner performance issues. The Mill has not changed the method(s) of use of use of Cell 1;. c) The Permittee has Taken Adequate Measures to Meet Permit Conditions Denison has taken adequate measures to meet Permit conditions in a timely manner. The provisions of the Mill's DMT Plan and Liner Maintenance Provisions Appendix were implemented immediately, and steps to identify any tears or other repair requirements are already underway; d) The Provisions of UCA 19-5-107 Have Not Been Violated The provisions of Utah Code 19-5-107 have not been violated. There has been no discharge of a pollutant into waters of the state. Denison has not caused pollution which constitutes a menace to public health and welfare, or is harmfiil to wildlife, fish or aquatic life, or impairs domestic, agricultural, industrial, recreational, or other beneficial uses of water, nor has Denison placed or caused to be placed any waste in a location where there is probable cause to believe it will cause pollution. There was no discharge of solutions from the Mill's tailings impoundments. Please contact the undersigned if you have any questions or require any ftirther information. Yours truly, •Oo Arm Tischler Director, Compliance and Permitting DENISO MINES cc: David C, Frydenlund Ron F. Hochstein Ryan Palmer Harold R. Roberts David E. Turk DENISOl MINES