ML20141C472

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Transcript of 970513 Public Meeting in Rockville,Md Re Briefing by Natl & Wy Mining Assoc.Pp 1-34.Supporting Documentation Encl
ML20141C472
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Issue date: 05/13/1997
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NRC COMMISSION (OCM)
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REF-10CFR9.7 NUDOCS 9705190061
Download: ML20141C472 (76)


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NUCLEAR REGULATORY COMMISSION l l l A t

Title:

BRIEFING BY NATIONAL AND WYOMING MINING ASSOCIATIONS - PUBLIC MEETING i I 1 1 Location: Rockville, Maryland 4 i i l Date: Tuesday, May 13,1997 l i a Pages: 1 - 34 g j 1 hfO ANN RILEY & ASSOCIATES, LTD. 7h g 1250 I St., N.W., Suite 300 Washington, D.C.20005 (202) 842-0034 s gDgD4 9705190061 970513

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l e. DISCLAIMER Thdsisanunofficialtranscriptofameetingof the United States Nuclear Regulatory Commission held on May 13, 1997 in the Commission's office at One White Flint North, Rockville, Maryland. The' meeting was open to public attendance and observation. This transcript j has not been reviewed, corrected or edited, and it may contain inaccuracies. The transcript is intended solely for general informational purposes. As provided by 10 CFR 9.103, it is l , not part of the formal or informal record of decision of the  ! l l L matters discussed. Expressions of opinion in this transcript do not necessarily reflect final determination or beliefs. No pleading or other paper may be filed with the  : Commission in any proceeding as the' result of, or addressed- I to, any statement or argument contained herein, except as ji the Commission may authorize. i l l l I l-l h e

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1 ,-4 l 1 UNITED STATES OF AMERICA 2 NUCLEAR REGULATORY COMMISSION

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l 4- BRIEFING BY NATIONAL AND WYOMING l 5 . MINING ASSOCIATIONS 6 *** l 7 PUBLIC MEETING

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9 Nuclear Regulatory Commission 10 Commission Hearing Room 11 11555 Rockville Pike 12 Rockville, Maryland , 13 14 Tuesday,-May 13, 1997 l 15 1 15 The Commission met in open session, pursuant to 17 notice, at 2:04 p.m., the Honorable SHIRLEY A. JACKSON,. i 18 Chairman of the Commission, presiding. ) 19 COMMISSIONERS PRESENT: 20 SHIRLEY A. JACKSON, Chairman of the Commission 21 KENNETH C. ROGERS, Member of the Commission 2 22 GRETA J. DICUS, Member of the Commission 23 EDWARD McGAFFIGAN, JR., Member of the Commission 24 NILS J. DIAZ, Member of the Commission i 25 l ANN RILEY & ASSOCIATES, LTD. Court Reporters  : 1250 I Street, N.W., Suite 300 l Washington, D.C. 20005 (202) 842-0034

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1. STAFF AND PRESENTERS SEATED AT COMMISSION TABLE:

2 JOHN C. HOYLE, Secretary 3 KAREN D. CYR, General Counsel 4 RICHARD LAWSON, NMA 5- CREW SCHMITT,. Uranium Producers of America 6 WILLIAM KEARNEY, Power Resources 7 JOHN HAMRICK, UMETCO 8 RICHARD ZIEGLER, Cotter Corporation

9. . ANTHONY THOMPSON, Shaw, Pittman, Potts &

10 Trowbridge 11 12' 13 14 15 16 17-18 19L l 20 1 21  ! 22 2 23

     .24 25 ANN RILEY & ASSOCIATES, LTD.

Court Reporters 1250 I Street, N.W., Suite 300 Washington, D.C. 20005 (202) 842-0034

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1 PROCEEDINGS i 2 [10:00 a.m.) 3 CHAIRMAN JACKSON: Well, good afternoon, ladies 4 and gentlemen. I apologize for my tardiness. We were doing ) 5 an emergency exercise, which we do periodically. 6 Today, representatives of the National Mining 7 Association, the Wyoming Mining Association and the Uranium , l 8 Producers of America have requested an opportunity to brief 9 the Commission concerning the current status of the industry i 10 and issues of concern to uranium recovery licensees. We are j 1 11 looking forward to hearing today's presentation from these I l 12 representatives of the uranium recovery industry. I i 13 understand that copies of your presentation material are 14 available at the entrances to the room and so, unless my 15 fellow commissioners have.any comments to add, Mr. Lawson, l 16 would you please begin? 17 MR. LAWSON: Thank you very much, Chairman. , l 18 May we start out with introductions from our side l 19 who are present, please? 20 MR. HAMRICK: I would like to introduce myself. I 21 am John Hamrick, Manager of Health Safety and Environmental 22 Affairs for UMETCO Minerals Corporation and also the

                                                                                           'i 23   Environment Subcommittee Chairman of the Uranium Policy 24   Counsel of the National Mining Association.

l 25 UMETCO currently holds three licenses, actually a l l , ANN RILEY & ASSOCIATES, LTD. Court Reporters 1 1250 I Street, N.W., Suite 300 i Washington, D.C. 20005 (202) 842-0034

a ,. } 4 1 few more than that including gauge licenses. But we have 2 the Maybell Title 2 facility, we have the Gas Hills facility 3 which is ' regulated by' the NRC. Maybell:and our other 4 facility, Uravan, in Colorado, are agreement state licenses. 5 MR. ZIEGLER: My name is Rich Ziegler. I am.with 6 Cotter Corporation. We are a wholly owned subsidiary of 7 Commonwealth Edison out of Chicago. We have a license with 8 the state of Colorado. We are'an agreement state and are 9 responsible in the~end to the NRC. 11 0 Thank you.

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11 MR. THOMPSON: My name is Anthony Thompson. I am 12 the outside counsel.to the National Mining Association's 13 Environmental Subcommittee. > 14 MR. SCHMITT: My name is Crew Schmitt. I am 15 President and CEO of Power Resources and also President of 16- the Uranium Producers of' America. I also represent GMX 17 Minerals. Power Resources projects are located in Wyoming. 18 We have the in situ leach project at Highland. We are 19 -currently _in the process of applying for a license for Gas 20 Hills operations and through GMS Minerals we have the Crow 21 ' Butte operation in Crawford,. Nebraska. 22 Thank you. 23 MR. KEARNEY: Good afternoon. I am Bill Kearney .24 with Power Resources located at the Highland Uranium Project 25 and I am also representing the Wyoming Mining Association ANN RILEY & ASSOCIATES, LTD. Court Reporters 1250 I Street, N.W., Suite 300 Washington, D.C. 20005 (202) 842-0034

 .. t 5                                                                                                  5 1 today.

2 CHAIRMAN JACKSON: Are there any others? 3 MR. LAWSON: Yes, we have some other licensees in 4 the audience. 5 . MR. KRAFT: Yes, my name is Fred Kraft. I am 6 representing U.S. Energy, which has a-license with Green 7 Mountain Mining Venture out of Red Desert in Wyoming and at 8 the Sweet Water Conventional Mill, Plateau Resources at the 9 Shootaring Canyon Mill and Yellowstone Fuels, which is an 10 ISL. 11 MR. INDALL: My name is John Indall. I am an 12 attorney from Santa Fe, New Mexico, and I am General Counsel 13 for Uranium Producers of America. 14 MS. REEMANN: My name is Michelle Rehmann. I am l 15 Environmental Manager for International Uranium Corporation. 16 We took possession of a license on Friday for the White Mesa 17 Mill near Blanding, Utah. 18 MR. POYSER: I am Bob Poyser. I represent Cogema 19 and specifically representing Pathfinder Mines Corporation 20 and Cogema Mining, Inc., which have together seven licenses. 21 CHAIRMAN JACKSON: Thank you. 22 We won't introduce ourselves -- oh, we still have 23 more. Please. 24 MR. PAULSON: My name is Oscar Paulson. I am 25 facilities supervisor for the Sweetwater Uranium Project l ANN RILEY & ASSOCIATES, LTD. l Court Reporters 1250 I Street, N.W., Suite 300 l Washington, D.C. 20005 (202) 842-0034 l

l I f* 6 l 1 near Rollins, Wyoming, and I an here representing Kennecott 2 Uranium Company.

3 Thank you.

4 MS. SWEENY: I am Katie Sweeney, Associate General 5 Counsel for the National Mining Association. 6 CHAIRMAN JACKSON: We aren't going to introduce 1 7 ourselves. Hopefully we know who we are. 8 MR. LAWSON: All right. 9 Well, thank you for the time today for us to 1 present ourselves. 11 The National Mining Association was actually 12 formed in 1995 by the merger of the National Coal 13 Association; an organization of about 65 years old, and the 14 American Mining Congress, an organization about 75 years 15 old. We represent coal and hard-rock producers, the 16 manufacturers and support agencies that support them. Also, 17 all of the State associations in the country representing l 18 the mining industry are members. 19 We are presently mining in 50 States. Indeed, 20 from a political standpoint, we're mining in 397 of the 435 21 districts of the United States. Last year the American 22 economy used 40,000 pounds of metals and minerals per l 23 person, plus an additional 7,000 pounds of coal to provide 24 electricity, and approximately a half-pound of uranium to l 25 provide electricity. We produced 57 percent of the i ANN RILEY & ASSOCIATES, LTD. Court Reporters 1250 I Street, N.W., Suite 300 l Washington, D.C. 20005 l i (202) 842-0034

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1 electricity with coal and about 21.6 percent of the 2 electricity used by the Nation with uranium. About 30 1 3 percent of the gross national product results from this 4 activity. 5 We're involved in Federal and international 6, activities in both regulative, legislative, public

7 relations, and educational projects. We have dealings with ,

l r l 8 DOI, DOL, Commerce, State, DOE, and several regulatory i 9 bodies. In addition we've become recently extraordinarily  ; 10 . involved in a number of international forums that are 11 beginning to enter into the activities of the mining. 12 industry of the United States, the United Nations, various  ; l 13 international labor, health, and safety groups, trade, and 14 market mechanisms. l 15 Among our member mineral processing companies are j 16 l'2 uranium recovery licensees. These uranium recovery L 17 licensees are represented by the Uranium Policy Council and 18 the Uranium Environmental Subcommittee within the 19 organization. 20 Mr. John Hamrick, the chairman of the Uranium l 21 Environmental, Subcommittee, will now provide you with a 22 brief history of the activities of these NMA committees. 23 MR. HAMRICK: Thank you, General Lawson. 24 I'd like to touch a little' bit on our purpose for 25 -being here today, which is to give you an update on the

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s .. 8 1 status of uranium recovery operations, and in doing so our 2 intention is to present and discuss perhaps some of the 3 issues that the licensees see as being perhaps burning ones 4 at this time, and in addition later we're going to extend an 5 invitation to the Commissioners to either individually or in 6 groups, whatever may be appropriate, to visit some of our 7 facilities, because some of them are quite large and it's a 8 little bit difficult sitting here around a table to get a 9 true feeling for the magnitude and the different issues that 10 face those facilities. We also are hopeful that we're 11 cpening a dialogue here with the Commissioners and we would 12 like to be able to continue that dialogue. 13 With that I'd like to say just a few words about 14 this organization that General Lawson has certainly covered, 15 the National Mining Association, which is essentially a 16 national organization covering multiple sectors of the 27 mining industry, the Uranium Producers of America, which is 18 also a national association, but with the express coverage 19 of the uranium sector, and then the Wyoming Mining 20 Association, which is again a State association that 21 represents multiple sectors in the minerals industry, with a 22 large proportion of uranium producers being members of that 23 organization. 24 With that we'll kind of go to the slides here. 3 25 would like to say just a couple, a few other points about ANN RILEY & ASSOCIATES, LTD. Court Reporters 1250 I Street, N.W., Suite 300 Washington, D.C. 20005 (202) 842-0034

9 1 the Uranium Policy Council and the Environmental 2 Subcommittee, that the Uranium Policy Council is the 3 supervisory or administrative body for the Environmental Subcommittee. The UES is the technical or regulatory-t 4 l 5 affairs arm of the policy council. We do represent NMA 6 members on a full range of regulatory, legislative, and , litigation issues. Including as members of the American 7 8 Mining Congress, eventually the National Mining Association, 9 we participated in the NRC GEIS rulemaking process and 10 various EPA rulemakings. We also were instrumental in 11 helping rescind subpart T -- 40 CFR, part 60, subpart T -- 12 the radon rules for inactive tailings. We've also commented 13 and provided input to staff on various branch technical 14 position papers and alternate concentration limit issues. 15 The membership is composed of four general 16 sectors, and those are the, if I skip around a little bit, 17 the producers, who are composed of conventional mills, those 18 that are operational have operating licenses, those that are 19 on standby and desire to become operational, the uranium in In 20 situ operators who continue to produce uranium today. 21 addition we have the licensees that are endeavoring to get 22 to license termination, and so are heavily involved in the remediation process, and then we also have producers of 23 24 uranium as by-products or co-products of other processes. 25 The location of the uranium recovery licensees tends to be ANN RILEY & ASSOCIATES, LTD. Court Reporters l 1250 I Street, N.W., Suite 4.0 Washington, D.C. 20005 (202) 842-0034

i .. 10 1 clustered around where the ore deposits are, which are . 2 mainly in the West in Wyoming, Nebraska, Colorado, New 3 Mexico, Texas, and Utah. 4 To give you an idea of the number of facilities 5 that we're talking about here on this slide we have listed 6 19 in situ leach facilities that tend to be clustered in 7 Wyoming and Texas with a couple in New Mexico, and the 8 conventional mine and mill facilities are also mainly 9 clustered in Wyoming, New Mexico, Utah, and Colorado. What 10 is not shown on here for the Colorado area is the numerous 11 small mines that supported those mills when they were 12 operating. 13 I would like to say a few words about our 14 perspective on our relationship with NRC staff, and we think 15 that we have an excellent working relationship with staff, 16 and we try to provide them with comments, and they have 17 tended to be very responsive when they have responded to us 18 in the materials they've given us. There's not always been 19 general agreement among us about what needs to be done or 20 perhaps things can be done, but I think that's to be 21 expected, and that is part of the reason we're here today, 22 is because we think that there are policy issues out there 23 that can be and need to be addressed by the Commission, that 24 their appropriate resolution lies at that level. So that's 25 part of our purpose. ANN RILEY & ASSOCIATES, LTD. Court Reporters 1250 I Street, N.W., Suite 300 Washington, D.C. 20005 (202) 842-0034

l 1 With that, I'll turn the presentation over to Crew Schmitt. He introduced himself earlier, but he'll be l 2 1 3 talking about the Uranium Producers of America and some of 4 the economics of the industry. 5 MR. SCHMITT: Thank you, John. . 6 It was a pleasure to have this opportunity to 7 participate in this briefing of the Commission on the 8 current status of the uranium recovery industry. l 9 As John said, the Uranium Producers of America is 10 the national organization representing companies with 11 production centers in half a dozen States, Western States 12 primarily. As licensees we have ongoing communication and 13 interaction with the NRC staff. 14 There are several key issues facing our industry 15 at this time. Those relating to regulation will be dealt 16 with in the latter part of the presentation. It might be 17 helpful for your understanding though to set the stage with 18 a little historical background and update on the current 19 status and some thoughts about the future relating to our 20 industry. 21 As you know, the uranium industry was born as a 22 weapons program. Later it was expected to supply the Atoms 23 for Peace program, promising electricity too cheap to meter 24 in hundreds of nuclear powerplants. Finally today we've 25 reached a point of relative stabilization where uranium ANN RILEY & ASSOCIATES, LTD. Court Reporters 1250 I Street, N W., Suite 300 Washington, D.C. 20005 (202) 842-0034

12 l l 1 requirements are expected to grow at a much more modest ' 1 2 rate, on the order of 1 percent per year, t 3 Although stable growth, this is certainly not the 4 expectations we had in the seventies, when there were high 5 expectations for nuclear. The annual uranium production in 6 1 the United States exceeded 40 million pounds per year. This  ! 7 slide that we see overhead right now reflects the employment l 8 at its peak. At that time 40 million pounds represented in l 9 excess of 20,000 jobs. Today actual production is closer to I 10 6 million pounds, and today the industry is closer to 1,000 11 jobs. 12 In yesteryear, a producer's competitor was over I 13 the next hill. Today, primary uranium producers' ' 14 competition is Government stockpiles built up over a 50-15 year cold war era. The slide that is now up, this slide 16 shows the price over the last 10 years reflecting the impact 17 these inventories have had on the market. You can see there 18 is significant volatility as there has been different 19 perceptions of this material coming into the marketplace. 20 CHAIRMAN JACKSON: Now this comparing -- that's 21 -the Commonwealth of Independent States? I mean, what is the 22 CIS price? 23 MR. HAMRICK: CIS is the Commonwealth of

 . 24    Independent States.      The other represents material that is 25    outside of the Commonwealth.

i ANN RILEY & ASSOCIATES, LTD. Court Reporters 1250 I Street, N.W., Suite 300 l Washington, D.C. 20005 I (202) 842-0034 l

 .. e 13 1            Integration of nuclear weapons materials into the 2 commercial market is essential in removing the nuclear 3 threat. The Uranium Producers of America wholeheartedly 4 support this integration. To that end we have worked 5 aggressively with other stakeholders to establish a rational 6 disposition of these materials. Agreements between the 7 United States and the former Soviet governments and 8 legislated schedules established with USEC Privatization Act 9 represent a rational disposition of these materials. These 10 disposition schedules allow primary production and 11 Government stockpiles to enter the commercial market without 12 significant disruption.

13 To be competitive today the United States uranium 14 industry, the group that is here today discussing with you, 15 has had to adapt. As you know from the previous slide, and 16 we're talking in excess of 20,000 jobs down to something on 17 the order of 1,000 today, it's been a significant l 18 adaptation. This adaptation is to competition from the 19 Government stockpiles. It's also adapting to compete with 20 higher-grade deposits outside of the United States. As a 21 result, today the United States uranium industry is 22 comprised of in situ leach production centers. These will 23 be described in detail a little later. For us to be l 24 competitive in the future in the U.S. uranium industry, we 25 must have technological innovation in order to be able to l ANN RILEY & ASSOCIATES, LTD. Court Reporters 1250 I Street, N.W., Suite 300 Washington, D.C. 20005 (202) 842-0034

i .. 14 compete in cost, and we must be extremely flexible to take l 1 2 advantage of market opportunities. As you saw from the l 3 slide, prices are all over the map at this point in time l 4 with the perception of the stockpiles. i 5 This innovation must be in the technical and in 6 the regulatory arenas. This does not necessarily mean 1 1 7 compromise of principles on either side. Rather it simply ) 8 means that much as many industries have had to seek unique 9 solutions to their competition, we have to forge new ways of 10 working together if our industry is to survive. I am 11 confident that we can find solutions necessary to- preserve 12 the primary uranium recovery industry and maintain the 13 mandate of the Nuclear Regulatory Commission with respect to 14 our industry. 15 I look forward to working with the NRC in seeking 16 these unique solutions. Thank you for your attention, and 17 I'm going to pass this on to Bill Kearney, chairman of the 18 Wyoming Mining Association Uranium Commictee. 19 Bill. 20 MR. KEARNEY: Thank you. 21 On behalf of the Wyoming Mining Association, I'd 22 like to thank the Commissioners and others for taking the 23 time to meet with us today. The Wyoming Mining Association, 24 also known as WMA, is an industry association that 25 represents bentonite, gold, coal, trona, and uranium ANN RILEY & ASSOCIATES, LTD. Court Reporters 1250 I Street, N.W., Suite 300 Washington, D.C. 20005 (202) 842-0034

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                   ' companies and mining associates such as vendors and 2   suppliers and contractors in Wyoming. . Wyoming leads the 3   Nation in,the production of bentonite, coal, soda ash, 4  produced from trona, and uranium.          The membership consists 5   of-35 mining companies, 120 supply companies, and 5 6   electrical utilities.

7 The next slide shows the uranium projects in 8 Wyoming. They are-located in the historic uranium mining 9 districts in the central and northeastern portions of the 10 State. You can see where Casper, one of two major cities in 11 Wyoming, is located. 12 Uranium was first produced in Wyoming in 1947. 13 Production peaked-at about 12 million pounds per year in 14 1980 when the work force numbered over 5,000 people. 15 Productioniin 1997 is expected to approach 3 million pounds, 16 and this production will be about 50 percent of the uranium 17- produced in the United States. So, as you can see, this is

          -18      an important commodity to the State of Wyoming-to the 19     economy.

20 Projections indicate that the production could be 121: 'as much as 9 million pounds by the year 2000. If you look 22 back at'the projects in Wyoming, a quick summary of that-23 shows that there's three operating in situ sites, one in 24 situ site that's'about ready.to go into production anytime, 25 several proposed in situ projects, several reclamation ANN RILEY & ASSOCIATES, LTD. Court Reporters 1250 I Street, N.W., Suite 300 Washington, D.C. 20005 (202) 842-0034 m -r- - r- ,=%-e- e .ag

i .. 16 1 projects at conventional mills, and two proposed " 2 conventional mines. 3 At this point we're going to change gears a little 4 bit by providing a brief overview of the types of uranium 5 operations licensed by the NRC. These include in situ  ! 6 leaching,' uranium mill tailings reclamation, and r 7

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conventional milling, including standby status. Rich _

8. Ziegler is going to cover the-last two types of operations, l 9 and I'm going to give a quick overview of the in situ mining 10 process.  ;

11 If you look at the' screen, it's probably different l 12 than your-book, but the orebody definition by drilling - 13 should be the first thing. You need to go out and find 14 where the uranium is first. A lot of drilling goes into 15- delineating where the ore body is. After it's located, t 16 geophysical logging's completed, the well fields are-laid 17 out, and wells are installed. After the wells are 18 installed, the production operations begin, injection and~ 19- recovery of fluids, ion exchange, and then the' precipitation ,

                                                                                     'I 20     of yellowcake and the packaging.- Some by-product materials                      '

21' are. dealt-with and wastewater is disposed through deep well i 22 -injection,. evaporation, land application,_ and discharge 23 under' NPDES' permits. The final step of the process is 2 <4 - groundwater _ restoration and surface reclar.ation and 25 decommissioning. ANN RILEY & ASSOCIATES, LTD. Court Reporters 1250 I Street, N.W., Suite 300 Washington, D.C. 20005 (202) 842-0034 l

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r 17 [ 1 The next slide depicts and idealized in situ mine. 2 The uranium lies in sandstone aquifers anywhere from.a # 3 couple hundred feet underground to upwards of 1,000 feet in 4 Wyoming, and wells -- injection and production wells -- ce 5 drilled'into the ore body to aid in the extraction of the 6 mineral, and monitor wells are installed in zones adjacent 7 to it and usually above and below it. 8 The next slide ~has a little more detail of a row- , 9 front uranium deposit, which is the type of deposit 10 typically in situ mined. It shows injection wells on the 11 outside with a production well in the middle. Basically the 12 process is nothing more than a large plumbing project where i 13 native groundwater that's in the ground is circulated, 14 typically gaseous oxygen and CO2 are added to this solution 15 which dissolves the uranium out of the rock, typically a  : 16 tenth of a percent uranium by weight. It's pumped to the 17 surface and run through an ion-exchange column. Where, 18 similar to your'home water softener, the uranium is taken 19 out and loaded on a resin. From there, it is eluted and 20 processed into the final product, which is yellow cake. 21 Then the next slide shows, to give you an idea of

    ~22 what some of the facilities look like, well field 23 construction. These are when the wells are being put in, 24 minimal environmental disturbance. 'The second aerial shot              ,

t 25 there shows an operating well field at the Highland Uranium ANN RILEY & ASSOCIATES, LTD. Court Reporters 1250 I Street, N.W., Suite 300 Washington, D.C. 20005 (202)- 842-0034

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                                                                                                                                                                  '18 1   Project.                                                                                                                                                     ~
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The little houses are header houses where the flow 2 from the wells is collected. 3 The satellite plant shows the ion exchange columns 4 where the resin where the uranium is taken out of the 5 groundwater before it is refortified with oxygen and carbon 6 dioxide and reinjected into the ground.

  • 7 The main plant site is where the uranium is 8

processed into the final product, yellow cake in the drum. 9 And then land application is just intended to show you what 10 the irrigation facilities look like where one of the common 11 practices is to irrigate your treated wastewater. 12 With that, I will turn it over to Rich Ziegler who 13 will cover the steps in conventional milling operations. 14 MR. ZIEGLER: Thank you, Bill. 15 I want to make sure that you, the Commission, 16 understands that we are the real miners. We are the 17 conventional miners. 18 [ Laughter.] 19 MR. ZIEGLER: Today we will talk about the 20 conventional. There are a few of us left. As you are -- 21 the brochure here indicates, the first one we would like to 22 discuss is the Sweetwater mill, it is up in Sweetwater, 23 Wyoming. Ours is located in Canyon City and there is one in 24 Blanding and Tikaboo. 25 But it is a typical, conventional mill. It has i ANN RILEY & ASSOCIATES, LTD. Court Reporters 1250 I Street, N.W., Suite 300 Washington, D.C. 20005 (202) 842-0034

19 1 -the same principles as all conventional mills, a' grinding 2 area, a leaching,.a. thickener or autoclave system which, in

            '3      turn, goes to a solvent extraction. For your information, 4       those. buildings that you are looking at on your right are 5      what I am talking about, the grinding, leaching, thickener, 6       solvent extraction. And then we go-into a precip, yellow 7       cake, and that is where'it is produced. The residue goes s

8 'into the tailings impoundment. All of the conventional 9 mills are basically the same as that, as the next page

10. l indicates.
          .11.                 The reclamation process, there are several steps 12        into it. We have to do the dewatering, continuous 13-   ~ dewatering. The leveling, which allows us to apply a radon 14       barrier, settlement, the radon barrier construction which 15        entails the erosion protection which is in-a variety of 16       methods or' forms,-either through rocks on the side, i

L 17 ' mulching, top-soiling, whatever it is, that is -- and then

LB final, what-we are doing at our mill-in-Canyon City, the l

19 . final portion of it is the-final groundwater cleanup. That

20.  : entails ACLs and limitations, deep well injection water and l

l' i 21' . things of that sort. l l 22, So that is pretty much'on the conventional'. 23' ,The one that you see now is a facility of the [ . j 24- UMETCO area at Gas Hills and in the. top portion, this site 25 'actually represents about 1200 acres. At the top, you.can ANN RILEY & ASSOCIATES, LTD. Court Reporters 1250 I Street,-N.W., Suite 300 Washington, D.C. 20005 (202). 842-0034

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i .. 20 1 see the above grade reclamation area. In the middle portion 2 is the heat leach that is covered, Both of those are 3 covered now. And currently what UMETCO is doing is I 4 processing grade and the below grade, I believe. l 5 MR. HAMRICK: Stabilizing materials or bringing 6 materials in there, in addition to doing s other things. 7 MR. ZIEGLER: But that's pretty much what the 8 conventional -- with that, I would like to turn it over to l i 9 l Mr. Tony Thompson, who is going to discuss regulatory l 10 issues. l 11 MR. THOMPSON: Good afternoon. 12 I am going to just touch on some regulatory issues l 13 that the uranium recovery licensees think are of some 1 14 importance. NRC recently undertook its strategic assessment 15 rebaselining initiative and in the context of that kind of 16 an approach to things, the uranium recovery licensees, in 17 their comments to NRC, suggested that since there were a lot i 18 of issues on the uranium recovery side of the house that had 19 been addressed over time when they came up rather than as 20 part of a sort of strategic consideration, that it might be 21 time to consider some of these decisions and how they were 22 posing potential problems for uranium recovery licensees in 23 some sort of coherent, strategic fashion. 24 One of the concepts that we have been discussing 25 amongst the uranium recovery licensees are to prepare a ANN RILEY & ASSOCIATES, LTD. Court Reporters 1250 I Street, N.W., Suite 300 Washington, D.C. 20005

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21 I white paper to present to the Commission some of these 2 issues and their views on the issues with a view to, 3 perhaps, having the Commission take a fresh look at these  ; 4 from a sort of strategic overview position. 5 The issues that I am just going to touch on today 6 are the issue of NRC jurisdiction over-ISL well fields, 7 NRC's Uranium Recovery Branch effluent disposal guidance, 8 NRC's non-11e (2) disposal policy and the issue of concurrent 9 jurisdiction. Concurrent jurisdiction being concurrent 10 jurisdiction by non-agreement states over the 11 nonradiological components of 11e(2) byproduct material. 12 NRC asserted jurisdiction over ISL well' fields 13 back around 1980 based on a memorandum from the legal 14 section at NRC. It has led to some duplicative regulatory 15 oversight between and among NRC, EPA and non-agreement 16 states. Traditionally, under the Atomic Energy Act, the AEC

17. and later NRC have not regulated uranium mining until the 18 source material is removed from its place in' nature. That 19 is certainly so with respect to underground uranium mines 20 and surface uranium mines which really aren't regulated '

21 until the source material reaches the mill site. However, 22 in'the context of ISL operations, the material is regulated

23. underground before it gets to the surface and before it 24 achieves the .05 percent concentrations of licensable source 25 material.

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22 1 Basically, the assumption here was that processing 2 the ISL leaching process underground is essentially the same 3 as the process of processing the ore on the surface in a 4 conventional mill. Now, that has posed some problems for us 5 when we look at the issues associated with staff guidance on 6 effluent' disposal. And, also, with the non-11e(2) policy as 7 I will indicate. 8 Process waste from ISL operations are treated as 9 11e(2) byproduct material but the wastes from restoring the 10 ore body, that is the underground ore body, are treated as

11 mine waste and therefore are not 11e(2) byproduct material.

12 So the surface sludges that are created by the i 13 process wastewater and the surface sludges created by the 14 restoration wastewater are, although the same thing, in fact 15 treated differently. And part of that is, I guess, because  ! 16 deciding that -- and here is where some of the illogic comes 17 in -- that processing the underground ore body in the ISL 18 context, the contaminants that are built up in the ore body 19 are not 11e(2) byproduct material. So when you are 20 restoring it, it is mine waste. Whereas, the contaminants 21 that build up in the ground, leaching from a mill tailings 22 facility, are 13e(2) byproduct material. 23 So we have a situation where frequently at ISL < 24 facilities, for example, restoration fluids and process 25 fluids go into the same radium, barium settlement ponds and ANN RILEY & ASSOCIATES, LTD. Court Reporters 1250 I Street, N.W., Suite 300 l Washington, D.C. 20005 (202) 842-0034 l

23 1 therefore there is a mixture of sludges which is 11e(2) and {' 2 non-11e (2) or norm, which is not subject to Atomic Energy 3 Act jurisdiction. So we have some potential conflicts here 4 that make the, as we will see when we go to look at the non-5 11e(2) disposal policy, they make both the operators of the 6 conventional facilities and the ISL operators nervous. 7 Under criterion two in 10 CFR Part 40, Appendix A, 8 the wastes from the 11e(2) byproduct material from ISL 9 operations is supposed to go to and be disposed of in 10 uranium tailings facilities. There was a concern with tne 11 non-11e(2) byproduct material policy that if things that 12 weren't 11e(2) were put into mill tailings impoundments that 13 DOE might balk at taking title or states or EPA or others might assert jurisdiction over those facilities. And what 14 15 we have seen now is that some of the wastes that have come 16 from ISL operations are clearly under the definitions we 17 have now mine waste norm and not 11e(2) byproduct material 18 and they are already in the mill tailings facilities. 19 So it concerns the operators of the ISL facility It 20 because they want to have someplace to send their waste. 21 concerns the operators of the conventional facilities 22 because they don't want to have anything interfere with 23 their ability to terminate their licenses. 24 Finally, all of these issues, we think, are likely 25 to be compounded by the concurrent jurisdiction issue. ANN RILEY & ASSOCIATES, LTD. Court Reporters 1250 I Street, N.W., Suite 300 Washington, D.C. 20005 (202) 842-0034

e 24 1 Recognizing that NRC, of course, traditionally, and AEC ' 2 before it has preempted on health and safety issues 3 associated with radiation. However, in the Mill Tailings 4 Act amendments to the Atomic Energy Act, Congress explicitly 5 directed EPA and NRC to regulate both the radiological and 6 nonradiological components of 11e(2) byproduct material 7 produced by uranaum recovery operations. CHAIRMAN JACKSON: Let me make sure I understand. 9 Have there been problems to date or are you 10 anticipating problems? 11 MR. THOMPSON: There have been some problems to 12 date and basically what has happened is that particularly 13 with respect to groundwater where you may be able to say, 14 well, we see a nonradioactive contaminant like sulfates, 15 even a nonhazardous contaminant, that is moving from the 16 groundwater that was as a result of production operations at 17 a conventional facility, with the non-agreement state having 18 concurrent jurisdiction over that, there is concern that NRC 19 may not want to terminate a license if we comply with NRC 20 requirements but the agreement state isn't satisfied. 21 Secondly, there have been indications from several 22 agreement states - 'non-agreement states, excuse me, that 23 because the cover on the tailings facility is also there to 24 inhibit infiltration which would impact groundwater 25 contamination over the 200 to 1000 year time frame, that ANN RILEY & ASSOCIATES, LTD. Court Reporters 1250 I Street, N.W., Suite 300 Washington, D.C. 20005 (202) 842-0034

25 1 they are entitled to look at the surface stabilization plans 2 of the facilities as well. And basically the concern here 3 is that we are going to get into a dilemma where we can't 4 make a decision where we have a situation where the NRC 5 says, and in fact the NRC says maybe we can't terminate this 6 license even though you have complied with our regulatory 7 requirements because we don't want to turn over a site to 8 DOE where DOE has a concern that a state may be asserting 9 some claim of jurisdiction. 10 We believe that there is -- it was even in the NRC 11 legal memorandum in 1980 considered a close question. We 12 believe that the answer is better that there is preemption 13 on the part of NRC. 14 It raises some questions about the viability of 15 the agreement state program if, indeed, non-agreement 16 states, without making these commitments, can insert 17 themselves into these regulatory decisions and it certainly 18 is going to increase the difficulty in closing sites. Some 19 of the more controversial sites, some of them in Utah, that 20 are getting a fair amount of publicity now, there may be 21 problems trying to go to final closure. 22 Those are sonie of the important issues that we 23 think may well be worth taking a fresh look at, not just 24 looking at the decisions as they were made at the time. 25 But looking at where we are now and where things are now as ANN RILEY & ASSOCIATES, LTD. Court Reporters 1250 I Street, N.W., Suite 300 Washington, D.C. 20005 (202) 842-0034

26 1 part of a strategic overview. . 2 The last issue I was just going to mention is that 3 we had'-- I say "we," the uranium recovery industry had ' 4 requested that the Commission modify its proposal on the 5 draft decommissioning and decontamination standards to 6 include not just uranium mill tailings but uranium recovery i 7 facilities because they were comprehensively regulated. And  ! 8 if, as we hoped, that rule is final, we appreciate the fact l i 9 that the Commission and the staff at the Commission listened 10 to our concerns and we are always appreciative of that. 11 Thank you. I 12 CHAIRMAN JACKSON: Commissioner Rogers? 13 COMMISSIONER ROGERS: No, I have no questions.  ; 14 CHAIRMAN JACKSON: Commissioner Dicus? 15- COMMISSIONER DICUS: I would like to go back to 16 the statement that you made, to be sure I understand it, 17 about the' concurrent jurisdiction raising questions about 18 the validity and viability of the agreement state program. 19 If I see if I understand what you are trying to say here, in 20 an agreement state, obviously, it would have total 21 responsibility for both the radiological and nonradiological 22- and are you saying that, in effect, it would never get in 23 conflict with itself? . I 24 MR THOMPSON: Yes. 25- COMMISSIONER DICUS: Okay, but the requirements 1 ANN RILEY & ASSOCIATES, LTD. l Court Reporters 1250 I Street, N.W., Suite 300 Washington, D.C. 20005 (202) 842-0034

                                                                            \
 ., a 27 1    that it might have for the nonradiological could be the same 2    as in a nonagreement state and still hold up the termination 3   of a license, would it not? I am not sure I see where it 4   really undermines the validity and viability of the 5   agreement state, MR. THOMPSON:                             Well, I guess it is just that the 6

f 7 agreement states take on the responsibility for addressing l 8 the whole range of issues and their standards to some And 9 greater or lesser extent are the same as NRC's. 10 ultimate sign-off on the sight is by NRC to approve of the 11 agreement state license termination for transfer to DOE. We 12 have a concern that, for example, a non-agreement state who 13 declines to take title to the facility, wants it to go to 14 DOE, could be in a position of after NRC signs off on the license, regulating that facility. Whereas, presumably, an 15 16 agreement state is looking at the program, is part of the 17 NRC program, part of the UMTRCA program, all the way across 18 the board. And while those kinds of regulatory issues do 19 come up, it suggests that if an agreement -- a non-agreement 20 state can come in and review your stabilization plan and 21 inhibit the NRC from terminating a license, that -- if you 22 have a dispute with your agreement state about license 23 termination, that is between you and your regulator. But 24 you are not dealing with your regulator, you are dealing 25 with a third party that is sticking their nose into it, in a ANN RILEY & ASSOCIATES, LTD. Court Reporters 1250 I Street, N.W., Suite 300 Washington, D.C. 20005 (202) 842-0034 P

28

                                                                                      \

1 . cense. . 2 MR. HAMRICK: And I think the point of it is 3 essentially under those terms, Tony, that the non-agreement 4 state then essentially is given the same authority as an 5 agreement state in terms of license termination. That is 6  ! where we see that the issue comes in, where the challenge, 7 kind of, to the program is. 8 MR. THOMPSON: And on the preemption issue, 9 traditionally at least, and certainly it has been applied 10 primarily to the radiation protection context, the 11 legislative history and all of the case law and everything 12 say it is going to be one of two entities they are going to 13 regulate, either an agreement state or the NRC and not a " 14 third entity. 15 CHAIRMAN JACKSON: So your specific recommendation 16 in the case involving non-agreement states then is? 17 MR. THOMPSON: The recommendation is to reconsider 18 the opinion or the guidance and suggest that in the case of 19 uranium recovery licensees under the Mill Tailings Act the 20 NRC does preempt because it is explicitly given authority to 21 regulate the r.L1. radiological constituents. It is the only 22 set of licensees under the whole NRC jurisdiction that are 23 given that authority by statute. 24 CHAIRMAN JACKSON: Okay, so then let me make sure 25 I understand. So the recommendation is drawing on UMTRCA. l ANN RILEY & ASSOCIATES, LTD.

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 .o e 29 1           MR. THOMPSON:    Yes.

2 CHAIRMAN JACKSON: You would like the NRC, the 3 Commission, to reconsider the issue of federal preemption? 4 MR. THOMPSON: Yes. 5 CHAIRMAN JACKSON: Okay, I just wanted to be sure 6 I understood. 7 COMMISSIONER DICUS: And again, this isn't 8 something that has happened but you perceive could happen. 9 Or has it happened? 10 MR. THOMPSON: It is happening. 11 CHAIRMAN JACKSON: It has happened? 12 MR. THOMPSON: Yes. 13 CHAIRMAN JACKSON: Maybe if you could propagate 14 some examples to us, that would be helpful. 15 Commissioner Diaz? 16 COMMISSIONER DIAZ: No questions. i l 17 CHAIRMAN JACKSON: Commissioner McGaffigan? l 18 COMMISSIONER McGAFFIGAN: It is really on the same 19 point. Are there any impediments on the statute? You 20 basically just answered that the statute would allow what i l 21 you believe the policy should be. Indeed, you have just 22 said that.the statute would encourage us to regulate both l 23 the radiological and nonradiological component? 24 MR. THOMPSON: It requires NRC and EPA to regulate 25 both the radiological and nonradiological and it creates a ANN RILEY Ec ASSOCIATES, LTD. Court Reporters 1250 I Street, N.W., Suite 300 Washington, D.C. 20005 (202) 842-0034

s .. 30 1= new -- the' statute creates a new type of byproduct material, 2 that being the 11e(2) byproduct material, which is the waste 3 from uranium, t 4 COMMISSIONER McGAFFIGAN: But once it says NRC and l 5 EPA _and EPA's agent, typically, on groundwater issues is the  ! 6 state, and so it sounds like the statute may well set up l 7 this multiple -- multiple regulation problem. 8 I am trying to figure out whether this is a policy 9 issue within our control to do something about or whether { 10- you'all really need to go and'get the statute amended. 11 MR. THOMPSON: I think that we -- we are fairly 12 well convinced that the. statute provides the authority, that 13 the statute was directed at a particular source term, I l 14' uranium mill tailings. It created'a byproduct material that i H 15 is to be regulated explicitly under this statute. ' It 1 I 16 explicitly directs EPA to set generally applicable J 11 7 .entironmental standards for radiological and nonradiological 18 hazards. NRC is to conform its standards to EPA's generally: ] 1 19- applicable standards which NRC has done and therefore NRC 20 and EPA, under the Atomic Energy Act are directed to I 21 regulate and to provide a level of protection that is

     -22           essentially equivalent to that provided for hazardous
     .23           constituents under RCRA.                       That is in the statute.

24 COMMISSIONER McGAFFIGAN: So why haven't the -- if 25 the statute-is clear and_a problem has aricen where a state l ANN RILEY & ASSOCIATES, LTD. Court Reporters 1250 I Street, N.W., Suite 300 Washington, D.C. 20005 (202) 842-0034

31 d 1 is exercising authority that you believe it may not have, 2 why-hasn't -- has that been taken to a court? 3 MR. THOMPSON: It has not been taken to a court as I yet and that is certainly one possibility. Essentially, I 4 5 think we have been told that one way to address' this is to 6 have this case taken to court. 7 One of the things we are considering is whether or 8 not bringing this along with some other issues to the 9 Commission for a fresh look might make more-sense than some 10 licensee fighting it out in a particular court somewhere. 11 CHAIRMAN JACKSON: Anything else? 12 Well, do you have any final comments you wish to 13 make. 14 MR. HAMRICK: Yes, we do have a little wrap-up 15 here, Chairman Jackson, and we do appreciate, Chairman 16 Jackson and Commissioners, your time here today, and we

          - 17   want -- we think that this can be very mutually beneficial, 18    an ongoing communication with the Commission similar to the 19    communication and communications that we've had with the 20   staff. We are in process, the National Mining Association 21    and our various groups of investigating further these 22   issues, and we would like perhaps the opportunity to present 23   the white paper to the Commission on the issues as we see 24   it.

25 In conjunction with that, if that's something tre ANN RILEY & ASSOCIATES, LTD. Court Reporters 1250 I Street, N.W., Suite 300 Washington, D.C. 20005 (202) 842-0034

                                                                                           . o.

32 l' Commission.would entertain, we'd like to reiterate our " 1 2 invitation to the Commissioners individually.or in groups to j 3- come out and see some of our facilities. It could be that-4 perhaps some Commission business may take you to Denver or 5 to Sal't' Lake City or something like that that may be an 6 opportunity to arrange visits out to some of our facilities, 7 and we would very much like to bring you out and show you 8 the facilities as they are on the ground, so to speak, with 9 the attendant issues and things that-can be perceived 10 directly. And so we think that those things would kind of 11 proceed in parallel perhaps, you know,.perhaps a visit at R12 Esome point,.and perhaps if that was possible what we would 13 suggest is that Katie Sweeney of NMA perhaps get with your 14 staffs and talk schedule, if that's something that could 15 happen. One thing though, we would like to remind the 16 Commission that a. lot of these sites are in this middle of 17 nowhere, and weather can be a consideration when you want to 18 visit. 19 COMMISSIONER DICUS: Summer; summer. 20 MR. HAMRICK: June through August. Perhaps into 21 September, 22 CHAIRMAN JACKSON: They can go in September. 23 MR. HAMRICK: Yes. I'm sure the Wyoming Mining 24 Association here could even, if called upon, could entertain 25 us with a .few jokes about Wyoming weather, but we'll perhaps ANN RILEY & ASSOCIATES, LT. , . Court Reporters 1250 I Street, N.W., Suite 300 Washington, D.C. 20005 (202) 842-0034

l .c a 33 i 1 leave that for the visit. 2 Maybe that's where, if you have no further 3 questions, that's perhaps where we can leave it. We do 4 appreciate your time, and if you have questions, we're more 5 than happy to respond with whatever we have, because these 6 are issues that we have spent a lot of time thinking about, 7 and dealing with in a practical manifestation out in the 8 field. 9 CHAIRMAN JACKSON: Yes, Commissioner McGaffigan. 10 COMMISSIONER McGAFFIGAN: Could I ask one 11 question? When is the white paper goito to be ready to l 12 submit to the Commission? You said you've been working on 13 it for some time. When would that be available, because I 14 think it would be -- 15 CHAIRMAN JACKSON: Is it done? 16 MR. THOMPSON: No. , 17 MR. HAMRICK: No , it's not done. 18 COMMISSIONER McGAFFIGAN: Because it would 19 actually be more useful in terms of some of these legal 20 issues to have the white paper than the briefing slots. , 21 MR. HAMRICK: Perhaps the fall, early fall, 22 something like that is what we're looking at as far as -- 23 MR. LAWSON: Let me just conclude then by saying 24 that until we meet again, I put a magazine at each of your 25 places, and I've entered your names on my circulation, so ANN RILEY & ASSOCIATES, LTD. Court Reporters 1250 I Street, N.W., Suite 300 Washington, D.C. 20005 l (202) 842-0034

34 1 . l you'll be seeing a little bit about th mining industry i 2 every two months from now on. 3 CHAIRMAN JACKSON: Well, thank you. I think I'd 4 like to thank each of you collectively and individually from 5 the National Mining Association, Uranium Producers of 6 America, the Wyoming Mining Association, and the individual 7 licensee entities. It's been a very informative 8 presentation, and I'm sure the information will be of value. 9 I echo Commissioner McGaffigan's comments. In 10 fact, it was part of my closing remarks anyway, so to 11 invite -- that's sort of a form of Federal preemption -- 12 invite you to submit the white paper to the Commission. The 13 more timely way you can submit it, the more apt it is to 14 weigh into any deliberations we have on these various 15 topics. I think it's important to lay out carefully what 16 you think the case is based on existing statutes for Federal 17 preemption by the NRC under UMTRCA, and how one gets at the 18 issue that Commissioner McGaffigan raised as to States being 19 EPA's agents with respect to the groundwater issue. 20 So, unless there are further comments, questions, 21 we ' re adj ourned . 22 [Whereupon, at 2:56 p.m., the briefing was 23 concluded.] 24 25 ANN RILEY & ASSOCIATES, LTD. Court Reporters 1250 I Street, N.W., Suite 300 Washington, D.C. 20005 (202) 842-0034

 .c a CERTIFICATE This is to certify that the attached description of a meeting of the U.S. Nuclear Regulatory Commission entitled:

TITLE OF MEETING: BRIEFING BY NATIONAL AND WYOMING MINING ASSOCIATIONS - PUBLIC MEETING PLACE OF MEETING: Rockville, Maryland DATE OF MEETING: Tuesday, May 13, 1997 was held as herein appears, is a true and accurate record of the meeting, and that this is the original transcript thereof taken stenographically by me, thereafter reduced to typewriting by me or under the direction of the court reporting company Transcriber: Ch u g kr$_ drfc/,nf8 Reporter: Mark Mahoney i I ! 1 1 l

1 i . AGENDA FOR URANIUM RECOVERY BRIEFING MAY 13,1997 ROCKVILLE, MARYLAND

1. INTRODUCTIONS (20 MINUTES)

LICENSEE INTRODUCTIONS (PRESENTERS AND COMPANY REPRESENTATIVES) ATTENDEES: Fred Craft, Vice President of Operations, Yellow Stone Fuels, U.S. Energy John Hamrick, Manager of Health, Safety and Environmental Affairs, Umetco and Chairman, NMA Uranium Environmental Subcommittee John Indall, Counsel, Uranium Producers of America General Richard L. Lawson, President & CEO, National Mining Association William Kearney, Environmental Superintendent, Power Resources Oscar A. Paulson, Facility Supervisor, Kennecott Michelle Rehmann, Environmental Manager, International Uranium (USA) Corporation Crew Schmitt, President & CEO, Power Resources and President, Uranium Producers of America Katie Sweeney, Associate General Counsel, National Mining Association Anthony J. Thompson, Attorney, Shaw, Pittman, Potts & Trowbridge and NMA Counsel Juan Velasquez, President, United Nuclear o Richard D. Ziegler, Executive Vice President, Cotter Corp. and Chairman, NMA Uranium Policy Council MEETING INTRODUCTION / INDUSTRY OVERVIEW (Lawson/Hamrick/ Schmitt/Kearney)

2. TYPES OF URANIUM OPERATIONS (10 MINUTES)

IN SITU LEACH (Kearney) CONVENTIONAL FACILITIES (Ziegler)

                     -- OPERATING / STANDBY
                     -- RECLAMATION i

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