ML19344F179

Responds to NRC 800605 Ltr Re Western Ny Nuclear Svc Ctr. Recognizes Requirements of Provisional OL Are Independent of Various Contractual Provisions & Obligations That Exist Between Nfs & Ny State R&D Authority

ML19344F179
Person / Time
Site:	West Valley Demonstration Project
Issue date:	07/10/1980
From:	Larocca J NEW YORK, STATE OF
To:	Cunningham R NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS)
Shared Package
ML19344F177	List: ML19344F176 ML19344F179
References
16835, NUDOCS 8009120549
Download: ML19344F179 (3)

Text

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New York State Energy Research and Development Authority Rockefeller Plaza e Albany, New York 12223 (518)465-6251 s

July 10, 1980 Richard E. Cunhingham, Director Division of Fuel Cycle and Material Safety Office of Nuclear Material and Safety and Safeguards United States Nuclear Regulatory Commission Washington, D.C. 20555

Dear Mr. Cunningham:

This is in reply to j eur letter of June 5, 1980 regarding the Western New York Nuclear Service Center (the

" Center") in West Valley, New York.

In September of 1976 NFS announced that it was terminating nuclear fuel reprocessing at the Center. In that connection, NFS sought to transfer responsibility for

' the waste storage facilities and accumulated wastes at the Center to the Authority under certain provisions of the Waste Storage Agreement (and subject to appropriate regula-tory action by NRC). NFS has since failed to satisfy the contractual conditions to any such transfer. Accordingly, we do not intend to submit an application for modification of License CSF-1 in connection with this matter.

As you know, the provisions of the Lease, dated I as of May 15, 1963 (the " Lease"), between Nuclear Fuel Services, Inc. ("NFS") and the New York State Atomic Re-search and Development Authority (the predecessor of the

New York State Energy Research and Development Authority, l

hereinafter the " Authority") provide that the term of the Lease may, at the option of the lessee, be extended for an additional ten years upon written notice to the Authority at least eighteen months prior to December 31, 1980. Upon such notice, the Waste Storage Agreement, also dated as of May 15, 1963, between NFS nad the Authority, may be ex-tended for a like term. To this date, NFS has not exer-cised this option and has stated orally that it does not intend to renew the Lease.

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We recognize and agree that the requirements of Provisional Operating License No. CSF-1 "are independent of and in addition to any of the various contractual pro-visions and obligations that exist" between NFS and the Authority.* In this regard, we note that the Authority is authorized under.the License only "to possess title to those portions of the facility not owned by NFS and to ,

permit NFS to perform those acts which NFS is authorized to do by paragraph 2 of this License." We also note that under paragraph 2 of the License NFS is licensed to use and operate the facilities and prossess the radioactive materials and wastes at the Center.

Thus, in addition to NFS' contractual obliga-tions to the Authority, NFS will remain responsible for the operation and maintenance of the facilities and radio-active materials at the Center until its obligations and responsibilities under the license are terminated. Fur-ther, we believe that, in any proceeding initiated for that purpose, NRC must be cognizant of the fact that re-processing operations at the Center have been discontinued since 1976 and will not resume.

In response to the specific numbered questions raised in your June 5 letter, as noted above, NFS has advised the Authority that it does not intend to renew the Lease. Under our agreements with NFS the Authority is not obligated to assume responsibility for maintenance of any of the facilities and wastes at the center until (a) NFS has satisfied its contractual obligations to the Authority and (b) NFS's license responsibilities at the Center have been terminated. Until these conditions are satisfied it is premature to aontract for services with regard to main-tenance of the facilities and wastes at the Center. The Authority has, however, prudently identified potentially qualified contractors interested in providing such ser-vices in connection with the solidification project dis-cussed below.

Much progress has been made over the last 12 months in advancing a program for solidification'of the high level liquid wastes at the Center. The United States Department of Energy (" DOE") has indicated its intention to accept overall management responsibility for such In a recent meeting, project when authorized by Congress.

• NFS does, of course, have certain contractual obliga-tions to the Authority (which continue beyond December 31, 1980) affecting any proposed transfer of responsibility for the facilities and wastes at the Center.

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Deputy Secretary Sawhill indicated to Governor Carey that DOE intended to use all of the facilities at the Center except the State-licensed burial ground in carrying out the solidification program and that DOE intended that their contractor would assume responsibility for main-tenance of these facilities by October of 1981.

We are hopeful that Congress will approve the project and that maintenance responsibilities at the Center would carry directly from NFS to DOE.

Representatives of the Authority met with your staff to discuss there and other matters on March 11, 1980 and remain available to discuss any questions you may have with regard to the foregoing or any other matters affect-ing the Center.

Very truly yours, A ; : :_^ ,

ames L. Larocca Chairman 16235 -

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