ML20209F650

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Responds to Re Regulation of Uranium Recovery Operations & Issue of Ex Parte Communications
ML20209F650
Person / Time
Issue date: 07/07/1999
From: Dicus G, The Chairman
NRC COMMISSION (OCM)
To: Leavitt M
UTAH, STATE OF
References
NUDOCS 9907160093
Download: ML20209F650 (1)


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CHANIMAN The Honorable Michael O. Leavitt L Govemor of Utah Salt Lake City, Utah 84114-0601

Dear Govemor Leavitt:

. I am responding to your May 21,1999 letter to my predecessor as Chairman, Dr. Shirley Ann

. Jackson, regarding the regulation of uranium recovery operations and the issue of ex parte communications.

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You state your view that the May 13,1999 letter to former Chairman Jackson from Mr. Hoellen of intemational Uranium Corporation (IUC) constitutes " inappropriate ex parte communications on a matter pending before the Commission." The Commission believes that the IUC letter expresses their concems on the general issues surrounding the promulgation of several proposed amendments to Utah's regulations and does not address a specific care directly.

,Therefore, we do not consider the IUC letter to be an inappropriate ex parte communication.

The proposed amendments to your regulations that are of concern were puolished for public comment in the May 1,1999 edition of ths Utah State Bulletin, Volume 99, Number 9, on pages 24-29 and 31-33. I have enclosed a copy of the NRC staff letter to Mr. William Sinclair providing the NRC's view that these proposed amendments raise serious jurisdiction and authority issues related to Utah's regulation of uranium milling operations and disposal of material resulting from the processing of alternate feed material.

4 I trust this letter responds to the issue of ex parte communications. We look forward to

continuing to work with your staff on the issue of alternate feed material and on other uranium recovery operations issues.'

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Sincerely, h

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b T5reta Joy Dicus

Enclosure:

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' Dianne R. Nielson, Executive Director

Utah Department of Environmental Quality L

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' Earl E. Hoellen -

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' President and Chief Executive Officer Intemational Uranium Corporation

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May 28, 1999 Mr. William Sinclair, Director Division of Radiation Control Department of Environmental Quality' 168 North 1950 West P.O. Box 144850 Salt Lake City, UT 84114-4850

Dear Mr. Sirselair:

We received a copy of several proposed amendments to your regulations published in the May 1,1999 edition of the Utah State Bulletin, Volume 99, Number 9 on pages 24 29 and 31-1 33.

We believe that these proposed amendments raise serious jurisdiction and authority issues related to Utah's regulation.of uranium milling operations and disposal of 11e.(2) byproduct material resulting from the processing of alternate feed material. The current Atomic Energy Act Section 274 Agreement (Agreement) between Utah and the Nuclear Regulatory Comrniscion (NRC) explicitly provides that NRC retains its authority to regulate "the extraction or concentration of source material from source material ore and the management and disposal of the resulting byproduct material." (Agreement, Article ll, @ E (as amended May 9,1990]).

Accordingly, under the current Agreement, NRC did not cede to Utah authority over uranium recovery operations and we are, therefore, of the view that Utah cannot legally promulgate regulations on the radiological aspects of uranium milling or 11e.(2) byproduct materials.

~ Therefore, before you promulgate final regulations, we would appreciate having you inform us of your intention to attempt to assert State authority in this area. This would enable us to consider and discuss with you the implications of Utah proceeding to implement such a rule on the Agreement Utah holds v.'ith the NRC and will allow us to determine what further action NRC must take to clarify Utah's lack of authority over NRC licensees in this area.

If you have any questions regarding our review, please contact Paul H. Lohaus of my staff at (301) 415-3340, or PHL@ NRC. GOV.

Sincerely, i

C Nilliam D,_frav rs Executiv6' Director for Operations cc:

Dianne R. Nielson, Executive Director, DEO j

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CHAIRMAN Mr. Earl E. Hoellen.

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- President and Chief Executive Officer Intemational Uranium Corporation -

Independence Plaza, Suite 950 1050 Seventeenth Street Denver, Colorado 80265

Dear Mr. Hoellen:

I am responding to your letters of May 13 and May 25,1999, on the proposed amendments to Utah's regulations regarding Uranium Recovery Operations.

' The staff reviewed the proposed amendments and found that if implemented, they would raise jurisdiction and authority issues as noted in the enclosed letter to.Mr. William Sinclair.

On the issue of ex parte communications, we do not believe that your letters referenced above constitute ex parte communications. The Commission also is sending a letter to Governor Leavitt informing him of this decision.

if you have any questions, please co1 tact r,aul Lohaus of my staff at (301) 415-3340, or PHL@NRC. GOV.

Sincerely, William D. Travers Executive Director for Operations

Enclosure:

As stated cc:

The Honorable Michael O. Leavitt Governor of Utah Salt Lake City, Utah 84114-0601

~ Dianne R. Nielson

. Executive Director i

. Utah Department of Environmentel Quality I

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OFFICE OF THE SECRETARY

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RAPER NUMBER:

CRC-99-0501 LOGGING DATE: May 27 99

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- ACTION OFFICE:

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AUTHOR:

MI3IAEL LEAVITT, GOVERNOR i

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UTAH ADDRESSEE:

C'IAIRMAN JACKSON

-LETTER DATE:

May 21.99 FILE CODE: MHS-11 URANIUM MILL

SUBJECT:

COMMENTS TO THE MAY 13 LTR FM HOELLEN RE THE STATE OF UTAH'S EFFORTS TO REGULATE URANIUM RECOVERY OPERATIONS..

ACTION:

Direct Reply DISTRIBUTION:

CHAIRMAN, COMRS, OCAA, OGC, RF SPECIAL HANDLING: SECY TO ACK CONSTITU,ENT:

NOTES:

REF: CRC 99-0465......... COMMISSION.

CORRESPONDENCE.... SECY/ RAS (EXPARTE)

DATE DUE:

Jun 14 99

. SIGNATURE:

DATE SIGNED:

AFFILIATION:

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'n STATE OF UTAH MICH A EL O. LE AVITT OFFICE OF THE GOVERNOR OLENE S. WALKER GOVERNOR S A LT L A K E CIT Y usutsmant oovrunon 84114 0601 i

May 21,1999 Dr. Shirley A. Jackson Chairman U.S. Nuclear Regulatory Commission Two White Flint North Rockville, Maryland 20852-2738

Dear Chairman Jackson:

This letter is sent because of a letter from Mr. Earl E. Hoellen to you dated May 13,1999, regarding the State of Utah's Efforts to Regulate Uranium Recovery Operations.

The substance of Mr. Hoellen's letter relates directly to an appeal before the Commission.

The State of Utah considers that letter as an inappropriate ex parte communications on a matter pending before the Commission.

I have not considered it appropriate to correspond with you dir-ctly concerning the proposals of International Uranium Corporation (IUC) to process material at the White Mesa Mill. As you know, the State of Utah has followed prescribed procedures and filed an appeal of the Presiding Officer's decision in the Matter of International Uranium (USA) Corooration. LBP-

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99-5 (February 9,1999). The Commission has agreed to hear the appeal. The State believes it will receive a full and fair review under the Commission's appellate processes based solely on the hearing record and not in any way based on Mr. Hoellen's ex parte letter-a letter which contains misrepresentations of State actions and positions. Properly, the State's arguments will be presented in its brief which will be filed on May 24,1999 and to which IUC will have an appropriate forum before the Commission in which to file a response brief.

The State has had extensive, ongoing discussions with IUC regarding the NRC guidance on alternate feed material and the actions of International Uranium Corporation (IUC) to process that material at the White Mesa Mill. When material does not contain recoverable uranium or thorium of economic value sufficient tojustify processing and there is no other reasonable justification for reprocessing, then IUC must obtain a commercial waste disposal permit from the State of Utah prior to processing, treating, and disposing of such material at the White Mesa D

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[c Dr. Shirley A. Jackson Page 2 Mill. And regardless of whether IUC is operating as a uranium mill or unde'r laws governing commercial waste disposal, its operations must also be conducted under a State groundwater -

j permit. The State has consistently taken this position for all similar facilities to IUC and permits I

have been obtained by these operations.

1 The State has not rejected the processing of all attemate feed materials. On the contrary, the State has concurred with requests to process material which can be shown to meet the above criteria; including the Cotter Concentrates, Allied Signal, Cabot Corporation, and Cameco j

materials requested between 1996 and 1998. However, when the recipient of alternate feed material collects a disproportionate amount of revenue from disposing of the waste, while failing to demonstrate that the material is being processed primarily for recovery of uranium or thorium, the action constitutes commercial waste disposal.

Of final note, this letter is not intended to be a response to IUC's statements concerning the proposed rules of Utah Radiation Control Board. Such a response is, at this time, 1

inappropriate under State law. IfIUC or any other person or agency submits comments on the proposed rules, the comments will be properly, objectively, and carefully evaluated by the Utah Radiation Control Board in making the decision 'vhether to finalize the rule.

I appreciate your consideration of these issues.

Sincerely, 4

Michael O. Leavitt Govemor MOL:DRN:dco j

cc:

Lane Beattie, President, Utah Senate Marty Stephens, Speaker, Utah House of Representatives l

Ear! Hoellen, IUC

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