2008-03-07_PERMIT FILE - M1978039HR

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processing for purposes of extractive metallurgy or causes or has the potential to cause acid mine drainage, we do not believe that the Division is in a position to determine that the Site is a DMO at this time. However, we understand that the Division has a different interpretation of the application of Section 34-32-103(3.5)(b) and the Regulations and has made its determination in the Notice based on that interpretation. While we disagree with the Division's interpretation, we respect the Division's determination and do not intend to dispute its determination under Rule 7.2.4 of the Regulations. Therefore, please take notice under Rule 7.2.3(1) of the Regulations that Denison does not challenge the Division's determination that the Site is a DMO. As the Site is an existing mining operation under an existing permit, and as the permit was granted prior to the promulgation of the Rules applicable to DMOs, the existing permit and permit application for the operation of the Site does not contain all of the necessary elements of an Environmental Protection Plan. As a result, please take notice that Denison does not intend to file any demonstrations under Rule 7.2.3(2)(a) of the Regulations that the existing permit application for the operation of the Site contains all of the necessary elements of an Environmental Protection Plan. As a result of the Division's determination that the Site is a DMO, Denison is required to prepare an Environmental Protection Plan for the Site. Denison does not believe it is possible to complete the Environmental Protection Plan within the 180 days required by Rule 7.2.3(2)(b) of the Regulations. Additional time is needed to prepare the Environmental Protection Plan, for the following reasons: • The Site is an existing permitted mining operation and is not currently the subject of an initial application for a new mine permit. As a result, not all of the current data required to support a new application are available to Denison for the Site at this time. Time will be needed to determine what existing information is available for the Site that would be relevant to the Environmental Protection Plan and to develop plans and programs to assemble missing information. • Once the gaps in available information are identified, it will be necessary to obtain Division concurrence on the manner of collecting the information. For example, sample collection and analysis and other test-work programs will require Division approval prior to implementation. • Because Denison is in the process of an environmental review by the Bureau of Land Management ("BLM") under the National Environmental Policy Act for some of benison's other mines that have been determined to be DMOs, concurrence of BLM on methodologies in some circumstances will also be required. • Sampling and analysis programs will have to be implemented in the field. • Results of sampling and analyses will be required to be analyzed, which could lead to the need to obtain more data from further sampling and analysis. • Studies and reports will be required to be completed. • The results of field analyses and studies will be required to be incorporated into the Environmental Protection Plan. • The foregoing requirements apply to the simultaneous preparation and submittal of Environmental Protection Plans for six different Sites (the West Sunday, Sunday, Topaz, Carnation, St. Jude and Van 4 mines). As a result, Denison hereby requests, pursuant to Rule 7.2.3(2)(c) of the Regulations, a period of one year to file the Environmental Protection Plan for the Site. The Site is an existing permitted mine, and Denison will continue to operate and mine the Site while the Environmental Protection Plan is being prepared in a similar manner as it has been operated and mined in the past, without changing in any significant way the manner in ~ENISON~II MINES 2