ML20198F191

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Discusses Re Issue of Payment of Funds IAW Professional Svcs Contracts W/New Mexico U Mill Operators
ML20198F191
Person / Time
Issue date: 06/04/1990
From: Brown W
NRC OFFICE OF INSPECTION & ENFORCEMENT (IE REGION IV)
To: Rose L
NEW MEXICO, STATE OF
References
TASK-TF, TASK-URFO NUDOCS 9801120007
Download: ML20198F191 (1)


Text

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,1 NUCLEAR REGULATORY COMMISSION REGION IV k

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t Louis W. Rose, Esq.

N Deputy General Counsel

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New Mexico Health and df a

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Santa Fe, NM 87503 48tstM N

Dear Mr. Rose:

Ramon Hall, Director of our Uranium Recovery Field Office, has asked me to respond to your letter to him dated May 8, 1990. Your letter raised the issue.of payment of funds in accordance with the Professional Services contracts with the New Mexico uranium mill operators. As indicated in

,g Mr. Hall's letter dated April 20, 1990, we have interpreted the wording of your contracts as being directed towards site reclamation; i.e., in accordance with a " Commission-approved" plan, or license provision, or other similar NRC directive or authorization--all pertaining to site l

reclamation as opposed to operational activities.

There is no question, j

however, that the activities described by the operators are authorized under their respective NRC licenses; those licenses not only authorize activities directed towards site reclamation, but also authorize and direct operational activities, t

As discussed with Mr. Hall during your joint meeting in Albuquerque with the operators on Nove oer 30, 1989, even though the NRC was not a party to the professional services contracts, we are concerned that release of the subject monies to the operators for other than reclamation related activities would be inconsistent with our understanding of what our certification role is under those contracts. We, of course, recognize that the State may disburse the funds in whatever manner and under whatever conditions it chooses.

However, if we are M

'to exercise the role requested of us, we must do so in accordance with not only our understanding of that role, but also consistent with our obligation to ensure that the Commission's licensees properly carry out their regulatory requirements pursuant to the Commission's regulations as set forth in 10 CFR 40, Appendix A.

Getting approved reclamation plans along with appropriate sureties in place will, I'm sure, greatly facilitate this process.

If we can be of any further assistance to the St-te of New Mexico, or if you wish to discuss this matter further, please ft u! tree to contact me at (817) 860-8271 or Ray Hall at (303) 236-2805.

Sincerely, 9001120007 000604 PDR STPRO ESGNP' William L. Drown PDR Regional Counsel

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