[Federal Register Volume 80, Number 142 (Friday, July 24, 2015)]
[Notices]
[Pages 44158-44160]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-18236]
-----------------------------------------------------------------------
NUCLEAR REGULATORY COMMISSION
[Docket No. 040-09068; NRC-2008-0391]
Lost Creek ISR, LLC
AGENCY: Nuclear Regulatory Commission.
ACTION: Temporary exemption; issuance.
-----------------------------------------------------------------------
SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is issuing a
temporary exemption from certain NRC financial assurance requirements
to Lost Creek ISR, LLC (Lost Creek), in response to its annual
financial assurance update for its Lost Creek In-Situ Recovery (ISR)
project. Issuance of this temporary exemption will not remove the
requirement for Lost Creek to provide adequate financial assurance
through an approved mechanism, but will allow the NRC staff to further
evaluate whether the State of Wyoming's separate account provision for
financial assurance instruments it holds is consistent with the NRC's
requirement for a standby trust agreement.
ADDRESSES: Please refer to Docket ID NRC-2008-0391 when contacting the
NRC about the availability of information regarding this document. You
may obtain publicly available information related to this document
using any of the following methods:
Federal Rulemaking Web site: Go to http://www.regulations.gov and search for Docket ID NRC-2008-0391. Address
questions about NRC dockets to Carol Gallagher; telephone: 301-415-
3463; email: [email protected]. For technical questions, contact
the individual listed in the FOR FURTHER INFORMATION CONTACT section of
this document.
NRC's Agencywide Documents Access and Management System
(ADAMS): You may obtain publicly-available documents online in the
ADAMS Public Documents collection at http://www.nrc.gov/reading-rm/adams.html. To begin the search, select ``ADAMS Public Documents'' and
then select ``Begin Web-based ADAMS Search.'' For problems with ADAMS,
please contact the NRC's Public Document Room (PDR) reference staff at
1-800-397-4209, 301-415-4737, or by email to [email protected]. The
ADAMS accession number for each
[[Page 44159]]
document referenced (if it available in ADAMS) is provided the first
time that a document is referenced.
NRC's PDR: You may examine and purchase copies of public
documents at the NRC's PDR, Room O1-F21, One White Flint North, 11555
Rockville Pike, Rockville, Maryland 20852.
FOR FURTHER INFORMATION CONTACT: John L. Saxton, Office of Nuclear
Material Safety and Safeguards; U.S. Nuclear Regulatory Commission,
Washington DC 20555-0001; telephone: 301-415-0697; email:
[email protected].
I. Background
Pursuant to Part 40 of Title 10 of the Code of Federal Regulations
(10 CFR), Appendix A, Criterion 9 and NRC materials license SUA-1598,
License Condition 9.5, Lost Creek is required to submit to the NRC for
review and approval an annual update of the financial surety to cover
third-party costs for decommissioning and decontamination of the Lost
Creek ISR facility located in Sweetwater County, Wyoming. By letter
dated November 21, 2014, Lost Creek submitted to the NRC its annual
surety update for 2014-2015 (ADAMS Accession No. ML14337A251). The
NRC's staff reviewed the annual financial surety update and found the
values reasonable for the required reclamation activities (ADAMS
Accession No. ML14162A050). Lost Creek maintains an approved financial
assurance instrument in favor of the State of Wyoming; however, it does
not have a standby trust agreement (STA) in place, as required by 10
CFR part 40, Appendix A, Criterion 9.
II. Description of Action
As of December 17, 2012, NRC's uranium milling licensees, which are
regulated, in part, under 10 CFR part 40, Appendix A, Criterion 9, are
required to have an STA in place. Criterion 9 provides that if a
licensee does not use a trust as its financial assurance mechanism,
then the licensee is required to establish a standby trust fund to
receive funds in the event the Commission or State regulatory agency
exercises its right to collect the funds provided for by surety bond or
letter of credit. The purpose of an STA is to provide a separate
account to hold the decommissioning funds in the event of a default.
Consistent with provisions of 10 CFR part 40, Appendix A, Criterion
9(d), Lost Creek has consolidated its NRC financial assurance sureties
with those it is required to obtain by the State of Wyoming, and the
financial instrument is held by the State of Wyoming. Lost Creek has
not established an STA, nor has it requested an exemption from the
requirement to do so.
Wyoming law requires that a separate account be set up to receive
forfeited decommissioning funds, but does not specifically require an
STA. Section 35-11-424(a) of the Code of Wyoming states that ``[a]ll
forfeitures collected under the provisions of this act shall be
deposited with the State treasurer in a separate account for
reclamation purposes.'' Under Wyoming Department of Environmental
Quality (WDEQ) financial assurance requirements, WDEQ holds permit
bonds in a fiduciary fund called an agency fund. If a bond is
forfeited, the forfeited funds are moved to a special revenue account.
Although the Wyoming special revenue account is not an STA, the special
revenue account serves a similar purpose in that forfeited funds are
not deposited into the State treasury for general fund use, but instead
are set aside in the special revenue account to be used exclusively for
reclamation, i.e., decommissioning, purposes.
The NRC has the discretion, under 10 CFR 40.14(a), to grant an
exemption from the requirements of a regulation in 10 CFR part 40 on
its own initiative, if the NRC determines the exemption is authorized
by law and will not endanger life or property or the common defense and
security and is otherwise in the public interest. The NRC has elected
to grant Lost Creek an exemption to the STA requirements in 10 CFR part
40, Appendix A, Criterion 9, for the current surety arrangement until
the next review cycle to allow the NRC an opportunity to evaluate
whether the State of Wyoming's separate account requirements for
financial assurance instruments it holds is consistent with the NRC's
STA requirements.
III. Discussion
A. The Exemption Is Authorized by Law
The NRC staff concluded that the proposed exemption is authorized
by law as 10 CFR 40.14(a) expressly allows for an exemption to the
requirements in 10 CFR part 40, Appendix A, Criterion 9, and the
proposed exemption would not be contrary to any provision of the Atomic
Energy Act of 1954, as amended.
B. The Exemption Presents No Undue Risk to Public Health and Safety
The exemption is related to the financial surety. The requirement
that the licensee provide adequate financial assurance through an
approved mechanism (e.g., a surety bond, irrevocable letter of credit)
would remain unaffected by the exemption. Rather, the exemption would
only pertain to the establishment of a dedicated trust in which funds
could be deposited in the event that the financial assurance mechanism
needed to be liquidated. The requirement in 10 CFR part 40, Appendix A,
Criterion 9(d), allows for the financial or surety arrangements to be
consolidated within a State's similar financial assurance instrument.
The NRC has determined that while the WDEQ does not require an STA, the
special revenue account may serve a similar purpose in that forfeited
funds are not deposited into the State treasury for general fund use,
but instead are set aside in the special revenue account to be used
exclusively for site-specific reclamation, i.e., decommissioning,
purposes. Because the licensee remains obligated to establish an
adequate financial assurance mechanism for its licensed sites, and the
NRC has approved such a mechanism, sufficient funds are available in
the event that the site would need to be decommissioned. A temporary
delay in establishing an STA does not impact the present availability
and adequacy of the actual financial assurance mechanism. Therefore,
the limited exemption being issued by the NRC herein presents no undue
risk to public health and safety.
C. The Exemption Is Consistent With the Common Defense and Security
The proposed exemption would not involve or implicate the common
defense or security. Therefore, granting the exemption will have no
effect on the common defense and security.
D. The Exemption Is in the Public Interest
The proposed exemption would enable the NRC staff to evaluate the
State of Wyoming's separate account provision and the NRC's STA
requirement to determine if they are comparable. The evaluation process
will allow the NRC to determine whether the licensee's compliance with
the state law provision will sufficiently address the NRC requirement
as well, and therefore provide clarity on the implementation of the NRC
regulation in this instance. Therefore, granting the exemption is in
the public interest.
E. Environmental Considerations
The NRC staff has determined that granting of an exemption from the
requirements of 10 CFR part 40, Appendix A, Criterion 9 belongs to a
category of regulatory actions which the NRC, by regulation, has
determined do not individually or cumulatively have a significant
effect on the environment, and as such do not require an
[[Page 44160]]
environmental assessment. The exemption from the requirement to have an
STA in place is eligible for categorical exclusion under 10 CFR
51.22(c)(25)(vi)(H), which provides that exemptions from surety,
insurance, or indemnification requirements are categorically excluded
if the exemption would not result in any significant hazards
consideration; change or increase in the amount of any offsite
effluents; increase in individual or cumulative public or occupational
radiation exposure; construction impacts; or increase in the potential
for or consequence from radiological accidents. The NRC staff finds
that the STA exemption involves surety, insurance and/or indemnity
requirements and that granting Lost Creek this temporary exemption from
the requirement of establishing a standby trust arrangement would not
result in any significant hazards or increases in offsite effluents,
radiation exposure, construction impacts, or potential radiological
accidents. Therefore, an environmental assessment is not required.
IV. Conclusions
Accordingly, the NRC has determined that, pursuant to 10 CFR
40.14(a), the proposed temporary exemption is authorized by law, will
not present an undue risk to the public health and safety, is
consistent with the common defense and security, and is in the public
interest. NRC hereby grants Lost Creek ISR, LLC an exemption from the
requirement in 10 CFR part 40, Appendix A, Criterion 9 to set up a
standby trust to receive funds in the event the NRC or the State
regulatory agency exercises is right to collect the surety. This
exemption will expire on February 10, 2015, for the Lost Creek ISR
Project. At that time, Lost Creek will be required to ensure compliance
with the STA requirements.
Dated at Rockville, Maryland, this 16th day of July 2015.
For the Nuclear Regulatory Commission.
Andrew Persinko,
Deputy Director, Division of Decommissioning, Uranium Recovery and
Environmental Programs, Office of Nuclear Material Safety and
Safeguards.
[FR Doc. 2015-18236 Filed 7-23-15; 8:45 am]
BILLING CODE 7590-01-P