ML20245G695

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Trip Rept of Participation in Workshop on Financial Assurance for Low Level Waste Disposal on 890719.Agenda for Workshop & List of Attendees Encl
ML20245G695
Person / Time
Issue date: 08/09/1989
From: Bell M
NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS)
To: Bangart R
NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS)
References
REF-WM-3 NUDOCS 8908160159
Download: ML20245G695 (22)


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.MJB/ TRIP REPORT: AUG 091939 i:

L' MEMORANDUM FOR:

Richard L Bangart, Director i

Division'of Low-Level Waste Management and Decommissioning, NMSS

.FROM:

. Michael J. Bell, Chief Regulatory Branch Division of Low-Level Waste Management and Decommissioning r

S' UBJECT:.

TRIP REPORT ON NORTHEAST COMPACT FINANCIAL ASSURANCE WORKSHOP, JULY 19, 1989 On. July 19, 1989, I participated in a Workshop on Financial Assurance for Low-Level Waste Disposal conducted for the Northeast Compact Commission.

Participants included representatives of the States of Connecticut and New Jersey, disposal site operators, the insurance industry, and the NRC.

The a enda for the workshop and a list of attendees are enclosed (Enclosures 1 and

'2.

!Ioparticipated in the opening session and presented an overview of the NRC requirements of Subpart E of 10 CFR Part 61, and of the guidance contained in Chapters 10 of NUREG's 1199 and 1200. A copy of the view-graphs for ray presentation is. enclosed (Enclosure 3).

Much of the workshop focussed on the need for third party liability insurance to ensure..against damages to persons or property caused by releases from an LLW disposal site. Although the offsite impacts, and therefore the potential damages, are perceived to be very small, sevdral states are requiring site -

operators to havet$100,000,000 of third party liability insurance. Such coverage is not available at present for new sites, but American Nuclear Insurers (ANI) anticipates offering it by January 1990. The existing sites have third party-liability insurance, but in amounts in the $10-25 million range. Third party liability inscrance provides coverage only for damages from off-site releases of source, by-product or special nuclear material, and does not provide coverage for clean-up of a contaminated site. ANI covers claims for damages for a period up to ten years after termination of the policy.

Other points of discussion included:

L Connecticut is considering building a centralized LLW storage facility for non-reactor LLW. One idea is to locate the facility at the same site j

being considered by the Compact for the disposal facility.

Connecticut is also considering co-locating the LLW disposal facility with a h::zardous waste facility. This raises concerns about L

distinguishing damages from the LLW facility from those caused by the hazardous. waste facility.

8908160159 evosop N3 PDC JU4

MJB/ TRIP REPORT (

The compact also has concerns regarding potential liability due to disposal of mixed waste.

The nuclear liability insurance would not cover third party damages due to hazardous wastes and conventional insurance would be required.

Original Sicmed by MICHAEL J. EELL Michael J. Bell, Chief l

Regulatory Branch Division of Low-Level Waste Management and Decommissioning, NMSS

Enclosures:

As stated Cent'ra1 File l' M 5

i Distribution:

NMSS r/f LLRB r/f MBell JGreeves PLohaus JSurmeier

~

PDR Yes No

/~7 Proprietary or CF Only /

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ACNW Yes No

/ /

SUBJECT ABSTRACT:

MJB TRIP REPORT ON NORTHEAST COMPACT FINANCIAL ASSURANCE WORKSHOP, JULY 19, 1989 0FC :LLRB NAME:MBeN/ds:

DATE:P/J/89 OFFICIAL RECORD COPY

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ENCLOSURE 1 i

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l Meeting the Financial Assurance Challenge:

L Issues and Resources for the Northeast Compact States k

l July 19,1989 Marriott Hotel, Stamford, CT Program 9:00 - 9:15 Introduction Denise Drace, Executive Director, Northeast Compact 9:15 - 10:30 Overview of Liability and Financial Assurance Requirements James Goldstein, Energy Systems Research Group, Moderator Richard Patton, Assistant to the President, U.S. Ecology, Inc.

Michael Bell, Acting Deputy Director, Division of Low-Level Waste Management and Decommissioning, U.S. Nuclear Regulatory Commission Identify liabilities and responsibilities over life-cycle of facility, including long-term institutional care.

Overview of financial assurance quirements to address all potential liabilities.

Review progress in other states and compacts in terms of defining financial assurance requirements and obtaining necessary coverage (including California, Illinois, Midwest Compact, Nebraska, North Carolina, and Pennsylvania).

l 10:30 - 10:45 Break 10:45 - 12:00 Traditional Insurance vs. Alternatives Allen White, Ph.D., Energy Systems Research Group, Moderator John Quattrocchi, Vice President, Underwriting, American Nuclear Insurers (ANI)

Bmce Smythe, Vice President, Johnson & Higgins Ware Preston, Risk Management Consultant, Tillinghast Status of ANI with respect to LLRW facility coverage and ANI's new endorsement form.

l Impact of Liability Risk Retention Act of 1986.

Risk retention groups, inter-compact arrangements, self insurance, and other financial assurance mechanisms.

s m_______

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l 12:00 - 1:00-Lunch i

(12:45 - 1:00)

Denise Drace, Executive Director, Northeast Compact

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i 1:15 - 4:00 Specific LLRW Financial Assurance Issues for Connecticut and New Jersey. Two workshops for each State, run concurrently.

Key resource people will attend the same workshop for both states.

Workshop 1 Connecticut 1:15 - 2:30; New Jersey 2:45 - 4:00 i*

Conventional LLRW facility insurance from ANI: Sta.e-specific legislative / regulatory constraints, liability factors and case law and the implications for obtaining coverage.

Workshon 2 New Jersey 1:15 - 2:30; Connecticut 2:45 - 4:00 Alternative LLRW facility insurance coverage and other financial assurance mechanisms: State specific legislative / regulatory constraints and liability factors and the implications for obtaining coverage.

Resource persons for Workshops 1 and 2:

Denise Drace, Esq., Executive Director, Northeast Compact R. Wdliam Potter, Esq., Haveson, Otis & Potter, Attomeys at Law, Princeton, NJ George Thrner, Assistant Counsel, American Nuclear Insurers George Viveiros, Nuclear Advisory Group, Johnson & Higgins Ware Preston, Risk Management Consultant, lillinghast Richard Patton, Assistant to the President, U.S. Ecology Bruce Garry, Manager, Product Applications, Westinghouse Robert E. Walsh, Assistant Attomey General, Connecticut Attorney General's Office Additional State personnel 4:00 - 4:15 Reconvene in Main Room 4:15 - 4:30 Summary Denise Drace, Executive Director, Northeast Cornpact

________--_________a

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ENCLOSlJRE 2 s

Muting the Financial Assuranca Challenge:

Issues and Resources for the Northeast Compact States

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Participants List j

i Mr. Gerald R. Backlund Mr. Michael Cole j

Connecticut Hazardous Waste Vice President and Controller I

Management Service Board Chem-Nuclear Systems, Inc.

900 Asylum Avenue, Suite 360 220 Stoneridge Drive l

Hartford, Connecticut 06105 Columbia, South Carolina 29210 I

(203) 244-2007 (803) 256-0450 Mr. Raymond O. Bagley, Jr.

Mr. Brad Dillon Northeast Utilities General Counsel, Legal Department i

P.O. Box 270 U.S. Ecology, Inc.

Hartford, Connecticut 06141-0270 900 Shelbyville Road, Suite 300 (203) 665-5000 P.O. Box 7246 Louisville, Kentucky 40222 Mr. Michael Bell (502) 426-7160 Acting Deputy Division Director Division of Low-Level Waste Ms. Denise L Drace, Esq.

Management and Decommissioning Executive Director U.S. Nuclear Regulatory Commission Northeast Compact Commission 1 White Flint North 195 Nassau Street,2nd Floor Mail Stop 5E4 Princeton, New Jersey 08542 Washington, D.C. 20555 (609) 497-1447 (301) 492-3435 Mr. Michael Drzyzga Mr. Andrew Bertone Radiation Safety Officer New Jersey Low-Level Radioactive Hoffman Laroche, Inc.

Waste Advisory Committee 340 Kingsland Street 176 Park Avenue Nutley, New Jersey 07110 Rutherford, New Jersey 07070 (201) 235-5000 (201) 939-7933 Ms. Jeanette Eng Mr. Holmes Brown Department of Environmental Afton Associates,Inc.

Protection 236 Massachusetts Avenue, NE Radiation Protection Suite 405 CN 415 Washington, D.C. 20002 Trenton, New Jersey 08625 (202) 547-2620 Mr. Bruce Garry Mr. Bradford Chase Manager, Product Applications Ahernate Commissioner Westinghouse Electric Corporation Northeast Compact Commission.

Nuclear Waste Department Office of Policy and Management P.O. Box 3912 Energy Division Pittsburgh, Pennsylvania 15230 i

State of Connecticut (412) 374-2115 80 Washington Street Hartford, Connecticut 06106 (203) 566-2800 L_--_-_----._

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Mr. Ronald Gingerich Mr. Shep Linscott Manager, Low-Level Radioactive Radiation Control Unit Waste Program Department of Environmental Protection Connecticut Hazardous Waste State of Connecticut Management Service 165 Capitol Avenue 900 Asylum Avenue, Suite 360 Hartford, Connecticut 06106 Hartford, Connecticut 06105 (203) 566-5134 (203) 244 2007 Mr. Kevin McCarthy Ms. Kathleen Golas Commissioner Chairwoman and Executive Officer Northeast Compact Commission Connecticut Hazardous Waste Radiation Control Unit Management Service Department of Environmental Protection 900 Asylum Avenue, Suite 360 State of Connecticut Hartford, Connecticut 06105 165 Capitol Avenue (203) 244-2007 Hartford, Connecticut 06106 (203) 566-5134 Mr. James Goldstein Manager, Environmental Projects Ms. Barbara H. McWhirter Energy Systems Research Group, Inc.

Connecticut Hazardous Waste 89 Broad Street Management Service Board Boston, Massachusetts 02110 900 Asylum Avenue, Suite 360 (617).426 5844 Hartford, Connecticut 06105 (203) 244-2007 Mr. Sam Greco GPU Nuclear Ms. Marie Miller 1 Upper Pond Road U.S. Nuclear Regulatory Commission Parsippany, New Jersey 07054 475 Allendale Road (201) 316-7513 King of Prussia, Pennsylvania 19406 (215) 337-5246 Mr. Richard J. Heller Connecticut Hazardous Waste Mr. Norman Miller Management Service Board Office of L.egislative Services 900 Asylum Avenue, Suite 360 Energy and Environment Division Hartford, Connecticut 06105 State of New Jersey (203) 244-2007 Suite 350 State House Annex CN 068

)

Mr. George R. Holeman Trenton, New Jersey 08625 Connecticut Hazardous Waste (609) 292-7676 Management Service Board

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Radiation Safety Department Ms. Barbara J. Morgan Yale University - West Laboratory Legal Intern j

314 WNSL West Northeast Compact Commission 260 Whitney Avenue 195 Nassau Street,2nd Floor

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New Haven, Connecticut 06520 Princeton, New Jersey 08542 i

(203) 432-3040 (609) 497-1447 j

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4 Mr. Paul Murdock-Mr. John Quattrocchi.

Environmental Compliance Services Vice President, Underwriting -

721 East Lancaster Avenue American Nuclear Insurers Downingtown, Pennsylvania 19335 The Exchange, Suite 245 (215) 269-6731 Farmington, Connecticut 06032

-(800) 327-1414 -

-(203) 679-5230 Mr. Scott' Oelke'.'

Mr. Michael Ryan, Ph.D.

Assistant to th: Director-

. Executive Director of Regulatory Northeast Compact Commission Affairs.

195 Nassau Street,' 2nd Floor Chem-Nuclear Systems, Inc.

Princeton, New Jersey 08542 200 Stoneridge Drive (609) 497-1447.

Columbia, South Carolina 29210

' Mr. Richari Patton Assistant to the President Mr. Paul Smith U.S. Ecology, Inc.

National LLRW Management Program Shelbyville Road, Suite 300 EG&G Idaho, Inc.

P.O. Box 7246 P.O. Box 1625 Louisville, Kentucky 40207 Idaho Falls, Idaho 83415 (502) 426-7160 (208) 526-6083 Mr. Sam Penza Mr. Larry A. Spitznagle, Ph.D.

Executive Director.

Chairman, New Jersey Iow-level

' New Jersey Iow-Level Radioactive Radioactive. Waste Disposal Facility Waste Disposal Facility Siting Siting Board Board

- Merck & Company, Inc.

c/o Larry Spitznagle P.O. Box 2000 (see listing below).

Rahway, New Jersey 07065 (201) 594 7617 Mr. N.' Mark Pollins Office of Solid Waste (0S-341)

Ms. Catherine C. Stanton U.S. EPA -

Catherine C. Stanton & Associates 401 M Street, S.W.

1221 Underhill Avenue Washington, D.C. 20460 Yorktown Heights, New York 10598 (202) 382-6259 (914) % 2-3756 1

Mr. R. William Potter, Esq.

Mr. Richard J. Sullivan l

Haveson, Otis & Potter Commissioner 194 Nassau Street Northeast Compact Commission Princeton, New Jersey 08540 2490 Pennington Road (609) 921-0090 Trenton, NewJersey 08638 (609) 883-3003 Mr. Wallace C. Pringle, Ph.D.

Connecticut Hazardous Waste Mr. John Taylor 1

Management Service Board Governor's Office of Policy 900 Asylum Avenue, Suite 360 and Planning L

Hartford, Connecticut 06105 State House, CN 001

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(203) 244-2007 Trenton, New Jersey 08625

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.. Mr. George Turner, Esq.

Iegal Department b

i American Nuclear Insurers L'Ihe Exchange, Suite 245;

' Farmington, Connecticut- 06032.

.(203) 679 5230:

Ms. Abxandra K.' Tyron-Hopko L: '

EG&G Idaho, Inc.

National LLRW Management Program 4

P.O. Box 1625 '

. Idaho Falls,' Idaho 83415' L(208) 526-9642' Mr. George Viveiros Nuclear Advisory Group Energy Division

- Johnson & Higgins 125 Broad Street,10th Floor.

New. York, New. York,' 10004

. (212) 574-7978 -

Mr." Robert E. Walsh, Esq.-

' Assistant Attorney General-

' Connecticut Attorney General's Office P.O. Box 120 -

- Hartford,' Connecticut 06106 (203) 566-2090 Mr. Allen L. White, Ph.D.

Senior Associate Energy Systems Research Group, Inc.

89 Broad Street -

Boston,' Massachusetts- 02110

. (617) 426 5844 m

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'e Updated Participants List

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Additions (to the original partitgants list):

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Mr. James Ce'.lwell Mr. Ware Preston Assistant Vice President Risk Management Consultant Johnson &-Higgins Tillinghast 10 Sylvan Way,3rd Floor Financial Centre, Suite 600 Parsippany, New Jersey 07054 695 East Main Street 1

(201) 326-9300 Stamford, Connecticut 06901

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(203) 326-5400 l

Mr. Kenneth Dufrane 4

(Chem-Nuclear Representative).

Mr. Bruce Smythe j

Dufrane Associates Vice President, Government Group 7 Holly Lane Johnson & Higgens of Virginia, Inc.

Avon, Connecticut 06001 707 East Main Street

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(203) 675-9350 Richmond, Virginia 23219 (804) 344-8606 Mr. Robert Howard l

Manager, Low-Level Waste Westinghouse Electric Corporation P.O. Box 3912 Pittsburgh, Pennsylvania 15230 i

(412) 374-2115 Unable to Attend (but on the original participants list):

Mr. Andrew Bertone, New Jersey LLRW Advisory Committee.

Mr. Michael Cole, Chem-Nuclear Systems, Inc.

Mr. Brad Dillon, U.S. Ecology.

Mr. Paul Murdock, Environmental Compliance Services.

Mr. N. Mark Pollins, U.S. Environmental Protection Agency.

l Mr. Michael Ryan, Chem-Nuclear Systems, Inc.

Mr. John Taylor, (N.J.) Governor's Office of Policy and Planning.

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ENCLOSURE 3 I

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