ML20031B749
| ML20031B749 | |
| Person / Time | |
|---|---|
| Issue date: | 11/25/1980 |
| From: | Gilbert E NRC |
| To: | |
| Shared Package | |
| ML20010D362 | List: |
| References | |
| FOIA-81-196 NUDOCS 8110060025 | |
| Download: ML20031B749 (12) | |
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" 4:sults of Interview With Ernest A. Swanson as Recorded by Investigator Edward C. Gilbert on November 24 and 25,1980 i
Ernest A. Swanson was interV.iewed by investigator Edward C. Gilbert at the Stepan Chemical Company, Maywood, N.J., on November 24 and 25, 1980.
He was interviewed in the presence of Miss Joan P. Fread, attorney, representing the law firm of Mayer, Brown and Platt, Washington, D.C., which had been etained by Stepan Chemical Company.
Also present during the interviews was Miss Mary Ann Campbell, inspector, U.S. Nt.-lear Regulatory Commission.
Mr. Swanso' advised he has been employed by Stepan Chemical Company since n
1960.
He explained he was initially bl.ed as a project engineer and was pro-moted to plant engineer one year later.
Approximately three or four years later he was appointed a technical coordinator.
In 1967 or 1968 he was placed in charge of manufacturing and engineering.
He has held the position of plant manager since 1974.
7 Mr. Swansen informed the Maywood Chemical Works was established in the late 1803's and purchased by the Stepan, Chemical Company in 1959.
He noted the corporate headquarters is located in Chicago, Ill.
He (Swanson) related the processing of thorium at the facility ceased in the mid-1950's prior to the change in ownership.
However, as a result of the previous processing of thorium, there were two above ground storage sites cor.taining radioactive thorium phosphate waste located on the company property.
He identified these sites as the " Building 77" area and the " South Dike" area.
Mr. Swanson stated the possession of this material was authorized by the Atomic Energy Commission under license number STC-130.
Mr. Swanson disclosed the thorium phosphate tailings at the Building 77 area were moved to two urMerground burial sites in 1956 and 1967.
He specified one of these underground sites is east of the plant's main office and is presently covered with g7ss.
Se continued the second site is beneath t%
upper parking lot and is now covered with asphalt.
He revealed both of these underground excavations were approximately thirteen feet deep and the wastes were covered with two or three feet of clean dirt! He denied that ground 811o06o025 818310 ETN81-196 PDRJ
water was encountered during oither burial process.
Mr. Swanson advised that
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an outside consulting firm, Isotopes Inc., conducted radiation surveys of both burial sites.
He added that after the.two waste burials had been completed the Atomic Energy Commission was apprised and it amended the license to authorize the underground storage of the thorium phosphate waste.
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He remarked that in 1968 the Stepan Chemical Company wrote to the Atomic Energy Commission seeking permission to bury the thorium phosphate tailings which were at the South Dike area.
He continued that after receiving the requested authorization this material was moved to a third underground storage site on the company's property in 1968.
He volunteered this burial site is positioned in the southeast corner of the company's property east of Building 75 and north of the Sears Distribution Center.
He advised that to the best of his recollection, five separate holes, each from twelve to thirteen feet deep, were dug.
He could not recall whether. ground water was encountered during the excava-tions.
He did poin+ out that bedrcck forms the bottom of all the holes.
Mr. Swanson advised the waste material was covered with a minimum of two feet of clean dirt.
He commented that several thousand cubic yards of radioactive waste were L1ried in these holes but he was unaware of the specific quantity.
He added thn following the burials, a survey of the surface area was conducted by the Stepaa Chemical Company on August 30, 1968.
He explained the company performed its own survey since the marginal radiation levels did not necessitate the services of an outside consulting firm.
Mr. Swanson admitted that he was personally involved in relocating the thorium waste from the two above ground storage ~ areas to the three underground storage locations.
He advised that after the Building 77 and South Dike areas were
' cleared and decentaminated, the Atomic Energy Commission inspected both loca-tions and authorized their unconditional release for sale by the company.
He noted the South Dike area, which is west of Route 17, has been sold.
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stated License Number STC-130 authorizing the possession of thorium in the 3
three underground storage areas, expired in 1972 and was inadvertently not renewed.
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Mr. Sweieson disc 1cssd that in August cr September 1975 a large warehouse was constructed directly over the third burial site.
He stated that since this area was already cleared land, it was the best available location for the building on the company's property at the time.
He declared that he was not personally involved in the selection of this s,ite for the warehouse.
He noted that the individual who chose this location is no longer in the company's employ.
Mr. Swanson assumed this person was aware of the thorium tailings buried underneath the site.
He oeclined to identify this individual.
He related that to prepare the site for the warehouse construction, an additional one to eight feet of clean dirt was used as fill to level th,e g ound area.
Additionally, many pilings were sunk in the ground to the bedroth level and then they were capped.
He also noted the floor of the building consists of 9-1/2 inches of concrete.
He informed none cf the five waste burial bales extend beyond the exterior perimeter of the warehouse.
Mr. Swanspn related the ware-house was designated Building 3.
He disclosed it is a natDral products, warehouse. utilized for the storage of various raw materiais.
He continu'd that e
proprietary material requiring special security measures is also. stored in the warehouse.
He pointed out these special security requirements were also a fact,or in the selection of this location for the warehouse.
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Mr. Swanson reported that in 1976 Dr. John Glenn, inspaci.or, Region I, Nuclear Regulatory Commission, conducted an inspection at the company.
He recalled '
Glenn's inquiries were directed toward the' initial two thorium waste that nr burial sites at the upper parking lot and the gras ~syprea east of the office building.
He continued that Dr. Glenn pointed out the company's license auth-orizing the storage of thorium phosphate at these two locations had lapsed and required renewal.
Mr. Swanson pointed out Dr. Glenn neither inspected nor s
made any mention of the third burial site during this,irupection.
Therefore he (Mr. Swanson) assumed Dr. Glenn was not interested,in the third site and
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accordingly he (Mr. Swanson) did not mention it during their cpnyersation.
Mr. Swanson could not recall whether Dr. Glenn reviewed compny records during the inspection.
He attested the third burici site was identi,fied in company records and he (Mr. Swanson) had previously (19E8) notified the"At4mic Energy Commission that this burial had been made on company property.
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Mr. Swanson stated that based upon Dr. Glenn's reauest, he prepared and submitted an application to the Nuclear Regulatory Commission in March 1977 for a lic~ense authorizing the company's possession of 9500 cubic yards of buried thorium waste tailings contained in two locations.
He stated he only specified two sites in the application sir.ce, at the time, he assumed the Nuclear P.egu-latory Commission was not interested in the third site.
He reiterated that he based this conclusion on the failure of the inspector to include any reference to this third site in his inspection or in his request that an application for the burial deposits be submitted.
Mr. Swanson also allowed that his decision not to include the third site in the application was influenced by the fact that there were only marginal readings at the third site indicating minimal radiation levels.
He acknowledged that he included in the application that an outside consulting firn, Isotopes Inc., would conduct an annual radiation survey of the two burial sites.
He explained that he did not consider it necessary to have an' outsid'e firm monitor the third site since, as he pre-vinusly rioted, the radiat' ion readings were marginal.
Mr. Swansun concluded that the' existence of the third burial site apparently " slipped through the l
cracks" by being overlooked by both Dr. Glenn during the 1976 inspection and by him (Mr. Swanson) when he prepared the application for a license in March 1977.
He could offer no other explanation or rationale for his failure to include information concerning the third site in his application.
In retro-spect, he acknowledged that all three underground radicactive waste storage' locations on Stepan Chemical Company property should have been specified in the application.
It was pointed out to Mr. Swanson that his failure to include this inforention may constitute a material misrepresentation of fact.
Mr. Swans:n advis4d that based upon the data supplied in his application for
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a Source Material. license, the Nuclear Regulatory Commission issued the company -
License Number SlC-1333 in April 1978.
Mr. Swanson volunteered that as, stipulated in the license, annual radiation smveys have been conducted'on the initial two burial sites by outside con-witants.
He specified that Teledyne Isotopes conducted the first survey in
' July 1978 and Dyna-TeLLtd performed the second survey in February 1980 He pointed out that neither survey surfaced any indication of danger to the
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public health end safety.
Mr. Swansen also revealed thit he and John O'Brien, General Manager, have made annual radiation checks inside the warehouse over the third site using a company geiger counter.
He emphasized their monitor-1 ing has never disclosed any'hing above. background readings and he is confi a nt t
there is no public health and safety hazards at this location.
He stated they,
have conducted three surveys at this site since the license was granted in 1978.
He related each was performed by taking readings at various areas within the warehouse.
He admitted the readings were not recorded and no documentation was prepared regarding these surveys.
Mr. Swanson reported that in September 1980 the Stepan Chemical r,ompany received a letter from the Nuclear Regulatory Commission indicating the Comaission does not intend to continue the authorization allowing the company to store thorium waster in the underground burial sites.
Further, the company was requested to submit a plan regarding the disposal of the wastes to include an estimate of the time requirements to remove the material from the premises.
He declared that for obvious reasons this letter created a great deal of consternation, particularly in respect to the material buried under the warehouse.
He pointed out the warehouse is a substantial structure which had been very expensive to build.
He assumed the warehouse would have to be comp 1'etely destroyed to remove all the thorium waste buried beneath it.
Mr. Swanson stated that in view of the contents of the letter, the services of the law firm of Mayer, Brown and Platt, Washington, O.C., were retained by the company for legal assistance and counseling regarding this situation.
He continued that Miss Fread, who is a member of this firm representing the company, volunteered to be present during the interviews of him.
Mr. Swanson related he was at the company's corporate headquarters in Chicago, Ill., between November 18 and 21, 1980.
He understood that during this period, the reporting investigator and Miss Campbell were at the company's Maywood facility.
In this respect, he was aware they had reported to Mr. 0'urien the receipt of information that radioactive contamination had recently been dis-covered in various areas east and west ri doute 17.
He noted the land west of Route 17 was the location of the for.aer above ground storage site of thorium waste referred to as the South Dike area.
He noted thht as previously mentioned, f
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t.his property was sold by the Stepan Chemical Company and is presently owned Ly SWS Industries.
He acknowledged the land immediataly east of Raute 17 is still owned by the company although it.is not presently being used.
He noted that this land contains several trail bike paths utilized by local residents.
He continued that although there is a "No Trespassing" cign posted on the property, the company has teen unsuccessful in its efforts to keep the children, out of the area.
He remarked that as a result of the recent disclosures of radioactivity, the company has instituted a patrol of the area and is presently contracting to have it enclosed with perimeter fencing.
He anticipated the construction of the fence would commence on December 1,1980.
He also related that based'upon the reports of radioactive contamination, Mayer, Brown and Platt arranged to have a radiation survey conducted by Nuclear Safety Associates, Bethesda, Md.
He explained that Henry Morton and Dri. Walton Rodger of this firm obtained radiation readings and scil samples at various locations in the area on November 22, 1980.
Mr. Swanson also reve ed that while Mr. Morton and Mr. Rodger were at the facility on November 22, 1580, they took radiation readings at the three buriai sites of thorium tailings on the property.
He pointed out the preliminary findings at the third underground site (beneath the warehouse) were entirely satisfactory and revealed no danger to tne public health and safety.
In this regpect,he'declaredtheirradiationreadingscompletelysupportedthemonitor-ing of this site which had previously been performed by Mr. O'Brien and him.
Mr. Swanson acknowledged the three underground burial sites of thorium waste have been considered as " storage" rather than " permanent disposal." He admitted, however, that prior to the receipt of the September 1980 letter from the Commission, the company had no reason to believe or anticipate that it would be required to remove the buried wastes from its property for per-manent disposal.
Mr. Swanson informed that on several occasions the Commission suggested that the company make a notation in the land deeds of the burial sites to facilitate the termin'ation of its Source imterial Lic.ense.
He explained, however, that the company elected to make a one-time payment of
$40,00 for the license rather than annotate the land deed.
He offered that
7 n-this seem::d to be the easier of the two alternatives and the co:pany has no intention of selling the land containing the three underground storage areas.
l Mr. Swanson searched Stapen ' Chemical Company records and provided copies of the following documents:
a.
An old aerial photograph of the Stepan Chemical Company, undated (circa early 1960's).
Many of the buildings depicted have been demolished subsequent to the photograph, and other buildings, including warehouse #3, were built after the photograph was taken.
b.
The report of the results of a radiation survey of the North and South Dike storage areas conducted by Tracerlab on March 25, 1964 (cover letter dated March 27,1964).
c.
The report of the results of a radiation survey of the South Dike storage area conducted by Isotopes, Inc. on May.28,1968 (cover letter dated May 31,1968).
The ieport disclosed readings ranging from background to 0.8 MR per hour with an average of 0.,3 to 0.4 MR per hour.
d.
A Stepan Chemical Company internal document regaiding tne removal of the thorium phosphate waste from the South Dike area to the burial site in the proximity of Building 75, dated June 27, 1968.
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report indicated a total of approximately 9,200 cubic yards of I
chemical waste would be transferred.
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Internal Stepan Chemical Company documents, dated August 30, 1968, i
l regarding the third burial-site identifying the relative location of the site, the approximate size of the area involved, the approx-l imate dimensions of the five burial holes and the radiation readings I
of the area after it had been covered with clean dirt.
The read-ings were obtained by the company and ranged from O.. to 0.07 MR per hour.
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Radiation survey report of burial site #1 (grassed area adjacent to main office building) and burial site #2 (upper parting lot) i conducted by Teledyne Isotopes on July 5,1978 (cover letter dated July 19,1978).
All readings were less than 0.2 MR per hour.
g.
Radiation survey report of burial site #1 and #2 conducted by Dyna-Tek on February 27, 1980. All readings were 0.04 MR per hour.
Mr. Swanson pointed out the " Confidential" caveat stamped on several of thest documents is an internal company marking and does not reflect a National Security classification.
Upon the advice of Miss Fread, he declined to display or release additional company file material which may pertain to this situation withou'. '.he expressed approval of legal personnel.
j The following additional questions were posed to Mr. Swanson by the reportin0 investigator which he declined to answer at this time based upon the legal advice of Miss Fread:
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a.
Who was the company official (s) who selected the third burial site as the location for the construction of the warehouse?
$ b.
Was this trecision made with the knowledge that radioactive thorium' phosphate waste was stored / buried, presumably ' n a temporary basis, o
directly br.ow the site?
c.
Specifically who in the Stepan Chemical Company, including personnel at the Chicago Corporate Headquarters, is aware of the third burial
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site?
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Who besides you (Mr. Swanson) is responsible for not including the third burial site in the application for a Source Material License dated March 2, 1977?
e.
Was this application read and/or appraved by other company officials prior to its submission to the Commission?
If so, who?
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In addition to the explanation you have offered, what further rationale was considered in the decision not to specify the third burial site in the application?
g.
What influence did the probability that the warehouse would be subjected to announced and unannounced inspections by the Nuclear Regulatory Commission (and other State and Federal agencies) have on the decision not to specify the existence of the third burial site?
h.
dtthetimeofpreparingandsubmittingtheapplication,wereyou and/or other company officials aware that the omission of the third site was a violation of several sections of Title 10 of the Code of Federal Regulations?
i.
Subsequent to~ tha receipt by the company of the Con. mission letter of September,18, 1980 addressing the removal and disposal of all buried thorium waste on the company property, who made and endorsed the decision not to immediately notify the Commission of the existence of the third burial site at this junctu e?
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What were the company's plans, intentions and actio'ns in response' to the Commission letter of September 18, 19807 k.
Who has been involved in the company's attempts to resolve the issues of the failure to include the third burial site in the license application and responding to the Commission letter?
Upon the legal counsel of Miss Fread, Mr. Swanson declined to submit a sworn written statement, an unsworn written statement, swear to the veracity of his al testimony or reiterate his previously furnished oral testimony after first being administered an oath.
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End of Results of Intervicw with Mr. Ernest Swanson.
C c2.n. w v d C.,h h c [
Edward C. Gilbert Investigator, NRC e
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