ML19241A620
| ML19241A620 | |
| Person / Time | |
|---|---|
| Site: | West Valley Demonstration Project |
| Issue date: | 05/29/1979 |
| From: | Dircks W NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS) |
| To: | Volker D NEW YORK, STATE OF |
| Shared Package | |
| ML19241A624 | List: |
| References | |
| 790509, NUDOCS 7907090005 | |
| Download: ML19241A620 (2) | |
Text
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NUCLEAR REGULATORY COMMISSION s
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Docket No.
50-201
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The Honorable Dale M. Volker
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New York Senate Albany, New York 12247
Dear Mr. Volker:
Your letter of March 23, 1979 to Chairman Hendrie regarding the license respon-sibilities of Nuclear Fuel Services, Inc. (NFS) and New York State Energy Research and Development Authority (NYSERDA) who are co-licensees of the West Valley nuclear fuel reprocessing plant has been referred to me for further M eply. Your letter basically raises questions concerning NES's ability to uni-
'p laterally terminate its responsibilities itnder the license and turn them over to NYSERDA at the end of 1980.
l As you are aware, the question of a licensee's ability to unilaterally terminate its responsibilities has also arisen in connection with the Sheffield, Illinois l
Low-Level Radioactive Waste Disposal Site operated under an NRC license by Nuclear Engineering Company, Inc. (NECO). NECO, by letter dated March 8, 1979, notified the NRC that it was unilaterally terminating its license for all activities at the Sheffield site. In response to that action, the NRC Staff issued an Order to Show Cause on March 20, 1979, requiring NECO to show cause why it should not resume its responsibilities and obligations under its license. The Order stated that NECO's license for receipt and possession oi nuclear materials at Sheffield carried with it the obligation to act with respect to those materials in a safe and responsible manner in accordance with its license, and that until such time as the Commission verified that those activities had been properly conducted, all responsibilities required by the license remained in force. In response to the Order, NECO filed an emergency motion with the Commission requesting, among other things, that the Show Cause Order be rescinded. The NRC Staff filed its response to the NECO emergency motion on April 2,1979 (copy enclosed). Basically, the NRC Staff's position with respect to the ques-tion of a licensee's ability to unilaterally terminate its responsibilities under an NRC license is that no license for possession or production of nuclear material or any right thereunder may "be transferred, assigned or in any manner disposed of, either voluntarily or involuntarily, directly or indirectly" without 310 Ou.,
SC C co7 790709000f
The ilonorable Dale M. Volker ~
Commission approval. (Staff Response p. 9) Thus, the Staff's position is that a licensee needs Commission approval before it can tran fer, assign or termi-nate its responsibilities under an NRC license. This Staff position, however, is now pen. ding before the Commission as are the varying positions of other parties.
On April 5,1979, the nuclear Reguluory Commission requested the U.S.
Departnwnt of Justice to bring suit on behalf of the Ccmmission seeking preliminary injunctive relief against NECO for non-compliance with the Show Cause Order issued on March 20. Prior to filing this suit, however, efforts have been undertaken to settle the matter and an agreement was l
executed on April 23, 1979. Although by the terms of this agreement, NECO will remain on the site, the question of the propriety of NECO's action to terminate the license unilaterally must still be resolved by the Commission.
I y' The Staff's posP_;on in the Sheffield case appears to be applicable to NFS's responsibilities under its license for the West Valley facility, NFS cannot trans-I fer, assign or terminate its responsibilities under its license without prior
.Coramission approval pursuant to 10 CFR 3 50.54(c). Also, in accordance with the terms of the Provisional Operating License, Section 4.A. any transfer of license responsibilities from NFS to NYSERDA must have the requisite Commission approval in the form of a license amendment.
You also asked whether NFS's responsibilities under the license are independent of, and in addition to, any responsibility NYSERDA may have to protect public health and safety as a co-licensee. Under the terms of the Provisional Operating License, NYSERDA owns the West Valley site including all the structures except the reprocessing plant, which is owned by NFS. NFS has sole responsibility for the operation and maintenance of the reprocessing facility, including storage of I
irradiated fuel elements, and the storage and burial of radioactive wastes.
Accordingly, under these license terms, we consider NFS's responsibilities are independent of, and in addition to, any license responsibilities of NYSERDA.
I trust that this le.tter is responsive to your concerns.
Sincerely,
<[
bg hilliam-J. Dircks, Director Office of Nuclear ' f aterial Safety and Safeguards Enclu.sur e:
.;RC Staff : esponse to.,ECO eraurgency motiun dtd 4/2/79 cc w/o encl: NFS service list 310 041