ML17313A712
| ML17313A712 | |
| Person / Time | |
|---|---|
| Site: | 07000925 |
| Issue date: | 11/08/2017 |
| From: | Lux J Environmental Properties Management |
| To: | Davis P, Robert Evans, Kenneth Kalman Document Control Desk, Office of Nuclear Material Safety and Safeguards, NRC Region 4, State of OK, Dept of Environmental Quality (DEQ) |
| References | |
| Download: ML17313A712 (5) | |
Text
9400 Ward Parkway
- Kansas City, MO 64114 Tel: 405-642-5152
- jlux@envpm.com November 8, 2017 Mr. Ken Kalman U.S. Nuclear Regulatory Commission 11555 Rockville Pike Rockville, MD 20852-2738 Mr. Paul Davis Oklahoma Department of Environmental Quality 707 North Robinson Oklahoma City, OK 73101 Mr. Robert Evans U.S. Nuclear Regulatory Commission 1600 East Lamar Blvd; Suite 400 Arlington, TX 76011-4511 Re: Docket No.70-925; License No. SNM-928 Purchase Offer for Two Acres Containing the Site Office Building
Dear Sirs:
In 2011, as part of the sale process for the 24 acres containing the process buildings, EPM retained Lloyd Lentz Company, Real Estate Appraisers, to perform an appraisal of a parcel containing 26 acres of land and the three buildings that remain on site. Between the time of that appraisal and the eventual sale of the property, EPM decided that it was not financially prudent to sell the office building and then incur the expense of leasing it indefinitely. Consequently, approximately two acres of property containing the office building was excluded from the sale of the land containing the former processing buildings. These two acres are located within Subarea I, which was released for unrestricted use in Amendment 17 to license SNM-928 in April 2001.
There is no evidence of environmental impact to this property.
Prior to selling the 24-acre property to Cimarron Holdings, Tom Stewart (President of Cimarron Holdings) requested that EPM consider including the two acres that contain the office building in the sale. EPM explained its position that retaining ownership of that parcel would eliminate the need to lease office space, thereby avoiding additional cost to the Trust.
Mr. Stewart is understandably concerned about maintaining access from Highway 74 to the property Cimarron Holdings purchased. He would like to own that small parcel on which the office is located to ensure long-term unobstructed access. He has stopped by our offices numerous times to discuss the possibility of purchasing that property. We have told him that EPM plans to relocate its offices to the Western Area Treatment Facility (WATF) after construction of the full-scale remediation system.
Mr. Ken Kalman U.S. Nuclear Regulatory Commission November 8, 2017 Page 2 Ive told Mr. Stewart that EPM would not be willing to consider selling this 2-acre parcel prior to EPMs relocation to the WATF unless he could present an offer which A) provides fair value for the property, and B) yields sufficient benefit to the Trust. He has returned periodically to discuss various options, and recently produced an offer that we believe justifies the sale of the property to Cimarron Holdings. Recently, Mr. Stewart sent a letter dated October 4th, to EPM (attached) containing an offer to purchase the property in a way that would be beneficial to both the Trust and Cimarron Holdings. EPM believes this is now worth pursuing.
The appraisal Mr. Lentz performed in 2011 assigned a value of $12,899 to the office building.
Since that appraisal was performed, the following three maintenance issues have arisen, which have not been addressed by EPM due to its intent to vacate the facility within a couple of years:
- The roof has begun to leak into the office occupied by the Trustee Project Manager.
- Gutters are leaking and the connection between two of the downspouts and the gutters have rusted enough that the downspouts detached and fell off.
- The drain line between the mens restroom and the septic tank has collapsed and requires replacement. In addition, the drain from the sink in the mens restroom has begun leaking.
Another issue involves a pre-existing condition - the improper installation of the HVAC system in the building. It was installed in a manner that makes it impossible to install an air filter.
Mr. Stewart is now offering to pay the same $2,500 per acre that he paid for the southwest quarter of Section 12, plus $13,000 for the office building, for a total of $18,000. Cimarron Holdings would allow EPM to continue to occupy the office building, at no cost, until its offices can be relocated to the WATF. In addition, Cimarron Holdings will take over the maintenance of the office building, and Cimarron Holdings would absorb the cost of lawn maintenance.
Although his letter only commits to repairing the restroom drain line and the HVAC system, he has indicated that Cimarron Holdings will also repair the roof and gutters/downspouts to avoid continuing deterioration of the roof and building. Those requirements can be included in a Purchase and Sale Agreement. A no-cost lease agreement would be included as an attachment to the Purchase and Sale Agreement.
EPM would continue to pay for utilities, office cleaning, and consumable supplies used in the office until relocating its facilities, and have unrestricted access to the office building and through Cimarron Holdings property to the remediation site.
Mr. Ken Kalman U.S. Nuclear Regulatory Commission November 8, 2017 Page 3 Cimarron Holdings would benefit, because owning this property would guarantee unobstructed access to its property. Mr. Stewart indicated that their gate would be relocated to the fence near Highway 74.
The Trust benefits because EPM would be able to continue to occupy the building at no expense, and Cimarron Holdings would take on the expense of lawn maintenance and perform repairs that will improve the offices that EPM occupies at no expense to the Trust. Because the office building contains radiological sources and instruments, as well as two drums containing radiologically impacted or potentially impacted waste (e.g., bagged resin, treatability test material, etc.), the Purchase and Sale Agreement would provide for EPMs exclusive access to the locked areas in which those materials are stored.
EPM proposes that NRC and DEQ approve EPM decision to pursue the sale of this property, contingent upon the execution of a Purchase and Sale Agreement and a no-cost lease agreement that is acceptable to NRC, DEQ, EPM, and Cimarron Holdings. If you have questions or desire clarification, please call me at 405-642-5152 or e-mail me at jlux@envpm.com.
Sincerely, Jeff Lux, P.E.
Project Manager Enclosure cc: Bill Halliburton, Trust Administrator NRC Document Control Desk (electronic copy only)