ML18073A079
| ML18073A079 | |
| Person / Time | |
|---|---|
| Issue date: | 01/02/2019 |
| From: | Maureen Wylie NRC/OCFO |
| To: | Compernolle R FMRI |
| kjd1 | |
| References | |
| Download: ML18073A079 (3) | |
Text
UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 January 2, 2019 Mr. Robert Compernolle, President FMRI Ten Tantalum Place Muskogee, OK 74403
Dear Mr. Compernolle:
On behalf of the U.S. Nuclear Regulatory Commission (NRC), I am responding to your letter dated May 18, 2017 (Agencywide Documents Access and Management System (ADAMS)
Accession No. ML17142A333), in which you requested an exemption from fees from the NRC pursuant to Title 10 of the Code of Federal Regulations (10 CFR) 170.12. You requested this exemption pursuant to the criteria set forth in 10 CFR 170.11(b).
The NRC has established regulations for the granting of fee exemptions under 10 CFR 170.11, Exemptions, for which licensees may apply in accordance with 10 CFR 170.5, Communications. The NRC staff reviewed your request based on the following regulations, 10 CFR 170.11(b) and 10 CFR 170.11(a)(13):
10 CFR 170.11(b) The Commission may, upon application by an interested person, or upon its own initiative, grant such exemptions from the requirements of this part as it determines are authorized by law and are otherwise in the public interest. Applications for exemption under this paragraph may include activities such as, but not limited to, the use of licensed materials for educational or non-commercial public displays or scientific collections.
10 CFR 170.11(a)(13) All fee exemption requests must be submitted in writing to the Chief Financial Officer in accordance with § 170.51, and the Chief Financial Officer will grant or deny such requests in writing.
FMRI (license SMB-911 for the Muskogee Site) is a subsidiary of, and primarily funded by, Fansteel. FMRIs only source of funding other than Fansteel is rental income of approximately
$4,500 per month. Fansteel filed for bankruptcy pursuant to Chapter 11 of the U.S. bankruptcy Code in September 2016 in the U.S. Bankruptcy Court for the Southern District of Iowa. The NRC is a party to the bankruptcy proceeding. Fansteel, the NRC, the Department of Justice, and the Oklahoma Department of Environmental Quality entered into a stipulation pursuant to which Fansteel provides funding to FMRI in the amount of $13,500 twice per month during the pendency of the bankruptcy. The purpose of this funding is to maintain health and safety at the Muskogee Site. These funds are not intended forand are insufficient todecommission the 1 10 CFR 170.5 provides that All communications concerning the regulations in this part should be addressed to the NRC's Chief Financial Officer, either by mail to the U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001; by hand delivery to the NRC's offices at 11555 Rockville Pike, Rockville, Maryland; or, where practicable, by electronic submission, for example, via Electronic Information Exchange, or CD-ROM.
site or pay NRC fees. The most recent decommissioning cost estimate is approximately $78 million yet the decommissioning trust fund for the Muskogee Site is $1.7 million. The parties to the bankruptcy are currently negotiating an environmental response settlement for the Muskogee Site. At this time, it appears that neither Fansteel, FMRI, nor any other entity is able to fully fund decommissioning of the site. Therefore, the NRCs priority for this site is to preserve funding for the maintenance of health and safety at the site and, if possible, funding to continue decommissioning the site.
The Muskogee site has groundwater contamination and is in close proximity to the Arkansas River. To be compliant with the license and regulations, FMRI must continue to collect and treat the contaminated groundwater before release instead of allowing it to naturally flow into the Arkansas River. Radioactive materials remain at the site such that an intruder could receive exposures that exceed the public dose limit. Therefore, the licensee must maintain site security and access control to deter intruders. Further, bulk contaminated materials at the site are partially contained in impoundments, in buildings, and in covered mounds. The licensee must maintain these structures and coverings to avoid a larger environmental release of materials and potential off-site spread of contamination.
The NRC staff has concluded that a fee waiver for the Muskogee Site is authorized by law and is otherwise in the public interest, given the financial distress and limited resources of FMRI.
This waiver is in the public interest because it will allow FMRI to preferentially utilize available funds to assure public health and safety at the Muskogee, OK, site and to continue to decommission the site, when practical. In consideration of the limited funding available for the Muskogee Site from Fansteel, FMRI, or any other entity, the NRC also concludes that this fee waiver should apply to any future licensee for the site. This fee waiver applies to past unpaid fees, fees presently due, and future fees. However, the NRC reserves the right to bill and collect on any current or future charges incurred should FMRIs or any future licensees financial situation change in a way that would make the payment of NRC fees feasible.
Because the request for exemption satisfies the exemption criteria required by 10 CFR 170.11(b) and 10 CFR 170.11(a)(13), the NRC staff concludes that the waiver is in the public interest, and the waiver is approved. If you have any questions regarding this matter, please contact Mr. William Blaney, of my staff, at (301) 415-5092.
Sincerely,
/RA/ Ben Ficks (for)
Maureen E. Wylie Chief Financial Officer
ML18073A079; Package: ML18298A104; Incoming: ML17142A333
- via e-mail CFO-0009 OFFICE OCFO/DPB/LFPT NMSS/DUWP NMSS/DUWP OGC NAME WBlaney GChapman*
JTappert*
EHouseman* NLO DATE 10/25/2018 11/07/2018 11/07/2018 11/21/2018 OFFICE OGC OCFO/DOC/A OCFO/DOC/ARB OCFO/DPB/LFPT NAME JSuttenberg* NLO MBlair CFredericks MKaplan DATE 11/21/2018 11/27/18 11/27/18 12/20/18 OFFICE OCFO/DPB OCFO/DPB DCFO CFO NAME RAllwein SCoffin BFicks MEWylie DATE 12/20/18 01/02/19 01/02/19 01/02/19