DRC-2011-007894 - 0901a068802cbd02

State of Utah
GARY R HERBERT
Govemor
GREG BELL
Lieutenant Governor
Department of
Environmental Quality
Amanda Smith
Exeatlivc Director
DIVISION OF RADIATION CONTROL
Rusty Lundberg
Director
December 20, 2011 ORC-2011;007894
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
Mr. David C. Frydenlund
Vice President and General Counsel
Denison Mines (USA) Corp. (DUSA)
1050 Seventeenth St. Suite 950
Denver, Colorado, 80265
Subject: 3'"^ Quarter, 2011 DUSA DMT Performance Standards Monitonng Report and Cell 4A and Cell
4B Performance Standards Monitormg Report (Dated November 30, 2011): Ground Water
Quality Discharge Permit UGW370004: DRC Findings, Confirmatory Aclion and Notice of
Enforcement Discretion
Dear Mr. Frydenlund:
On December 1, 2011, the Utah Division of Radiation Control (DRC) received the 3^ Quarter, 2011 DMT
Perfonnance Standards Monitormg Report and Cell 4A and Cell 4B Performance Standards Momtonng
Report (dated November 30, 2011) for the DUSA White Mesa Mill near Blanding, Utah. After review of
the referenced report, several issues were identified, as discussed below. These items were discussed with
DUSA during a teleconference on December 19, 2011. This letter summarizes the outcome of our staff
review of the Report and the agreements made dunng the teleconference. The DRC findings were as
follows:
1. Part LE 8(a)( 1) of the Ground Water Quality Discharge Permit (GWDP) requires DUSA to provide
continuous operation of the Cell 4A LDS pumping and monitonng equipment, and to make such
equipment operational withm 24 hours of discovery of a failure of such equipment On June 27,
2011 Mill personnel discovered that the LDS momtonng datalogger had stopped recording
measurements on June 7, 2011. Plant personnel rebooted the system and observed resumption of
data logging. Plant persormel checked the logger more frequently following the reboot, and
repeated the system reboot on July 1, 2011.
Upon discover}' that rebooting the system did not correct the failure, DUSA consulted with the
equipment manufacturer for trouble shooting and repair advice DUSA has restored the data
logging equipment to compliant operation, including installation of an upgraded version ofthe data
management software dunng July, 2011 DUSA monitored performance of the repaired equipment
daily through July 31,2011, noting that the repair has been successful
195 North 1950 West • Salt Uke City, UT
Mailing Address P O Box 144850 • Salt Lake Cit>', UT 84114-4850
Telephone [phone] • Fax (80!) 533^097 'TDD [phone]
H-MTv deq uiah gov
Pnnted on 100°b recycled paper
David C. Frydenlund
Page 2
December 20, 2011
Failure to repair a failed system and bnng it to full operation within 24 hours constitutes a violation
of Part 1 .G.3 ofthe GWDP. On October 27, 2011 the DRC informed you by letter of our findings
regardmg the 2"^^ Quarter, 2011 Report. That letter served as a Notice of Enforcement Discretion
regarding this equipment failure, covenng the time for the 2"^* quarter of 2011 where the data
logger failed to function properly. The violation condition continued into the 3*^ quarter of 2011
before correction efforts proved successful.
2. On October 26, 2011 in a teleconference, DUSA committed to provide information required under
the License, but not specified under the DMT/BAT Plan in the 3"^ Quarter, 2011 Report. This
additional information was mcluded in the 3"^ Quarter, 2011 Report, which was helpful in DRC
review of the report and is appreciated.
Confirmatory Actions
On December 19, 2011 during a Preliminary Findings conference call for the 3"^ Quarter, 2011 Report,
DUSA committed to do the following.
1. DUSA will continue to provide the additional momtoring data required in the License m future
DMT Reports.
2. Concurrent with preparation ofthe 4^*" Quarter, 2011 Report, DUSA will prepare revisions to the
DMT/BAT Plan to delineate more precisely what data to include in the DMT/BAT Report. DUSA
will also suggest at that time an alternative means to report the data required by license. These
Items will be submitted to DRC by March 1, 2012.
Notice of Enforcement Discretion
Although DUSA failed to retum the Cell 4A leak detection system data logging equipment to full
functionality within 24 hours of discovenng a failure of the product, the Executive Secretary has
determined to use enforcement discretion in this matter, based on:
• 1. DUSA personnel made reasonable efforts to troubleshoot and repair the data logger
2. DUSA continued to manually collect daily measurement from the process controller. This
redundant data set provided data of sufficient quality and quantity effectively to perform as a
surrogate for the data logger.
3. The product failure and protracted trouble shooting did not result in a violation ofthe performance
standards for the leak detection system, or result in failure to detect a liner breach.
4. Repairs which DUSA has made have retumed the equipment to proper operation.
Please respond in wnting within seven calendar days of receipt of tliis letter if you disagree with the above
agreed upon resolution or compliance schedule. If you have any questions or comments, please
contact Russ Topham at [phone].
Thank you for your contmued cooperation.
David C. Frydenlund,
Page 3
December 20, 2011
UTAH WATER QUALITY BOARD
Rusty Lundberg ^
Co-Executive Secretary
RL/RJT:rjt
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RE. 12/20/11, 3RD QTR FINDINGS/Rf
David C Frydenlund
Vice President & General Counsel
Denison Mines (USA) Corp (DUSA)
1050 17th ST STE 950
Denver CO 80265
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RE 12/20/11, 3RD QTR FINDINGS/RJ
David C Frydenlund
Vice President & General Counsel
Denison Mines (USA) Corp (DUSA)
1050 17th ST STE 950
Denver CO 80265
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