ML23062A699
| ML23062A699 | |
| Person / Time | |
|---|---|
| Issue date: | 10/02/2000 |
| From: | Mcburney R Office of Nuclear Material Safety and Safeguards, State of TX, Dept of Health |
| To: | |
| Shared Package | |
| ML23062A719 | List: |
| References | |
| Download: ML23062A699 (1) | |
Text
Financial Security:
Financial Security:
Three Texas Case Studies Three Texas Case Studies or or The Great Texas Security The Great Texas Security Chase Chase Ruth E. McBurney, CHP Ruth E. McBurney, CHP Texas Department of Health Texas Department of Health
Case 1: The Case of the Case 1: The Case of the Missing Management Missing Management In Situ Uranium Company in Decommissioning In Situ Uranium Company in Decommissioning Type of Security:
Type of Security:
Trust Trust Initial Amount:
Initial Amount:
$17 million for closure of
$17 million for closure of two sites two sites
Case 1: The Case of the Missing Management Case 1: The Case of the Missing Management nn Groundwater restored Groundwater restored nn Wells plugged and abandoned Wells plugged and abandoned nn Surface reclamation not complete Surface reclamation not complete nn $1.2 million left in trust
$1.2 million left in trust Status:
Status:
nn Company has no assets other than trust Company has no assets other than trust nn Company B agreed to decommission site for remainder Company B agreed to decommission site for remainder of trust after decommissioning of trust after decommissioning nn 1999 - Letter stating that sites are clean; confirmation 1999 - Letter stating that sites are clean; confirmation surveys showed excess contamination surveys showed excess contamination nn NORM (mine waste) vs. 5/15 pCi/g Ra standard NORM (mine waste) vs. 5/15 pCi/g Ra standard nn Possible inappropriate use of trust funds Possible inappropriate use of trust funds nn TDH audit of past expenditures, refusal to reimburse TDH audit of past expenditures, refusal to reimburse until additional progress made until additional progress made Summary of Activities and Issues Summary of Activities and Issues Case 1: The Case of the Missing Management Case 1: The Case of the Missing Management
nn TDH can call in financial security if site is abandoned TDH can call in financial security if site is abandoned nn Company requested Trustee to release funds -- No Company requested Trustee to release funds -- No nn TDH asked Trustee to release funds to TDH, since TDH asked Trustee to release funds to TDH, since agency considered site abandoned -- No agency considered site abandoned -- No nn TDH asked assistance from Attorney Generals Office TDH asked assistance from Attorney Generals Office Summary of Activities and Issues Summary of Activities and Issues (Contd)
(Contd)
Case 1: The Case of the Missing Management Case 1: The Case of the Missing Management
nn August 2000 - New attorney, new proposal to August 2000 - New attorney, new proposal to TDH:
TDH:
-- TDH releases approximately 1/3 of remaining trust TDH releases approximately 1/3 of remaining trust
-- Company B performs reclamation on behalf of Company B performs reclamation on behalf of company company
-- Work plan cost estimates of company not consistent Work plan cost estimates of company not consistent with TDH estimates with TDH estimates nn TDH referred matter to States Attorney Generals TDH referred matter to States Attorney Generals Office for action Office for action Recent Developments Recent Developments Case 1: The Case of the Missing Management Case 1: The Case of the Missing Management
Case Study 2: The Case of the Case Study 2: The Case of the Faltering Finances Faltering Finances In situ uranium recovery company near bankruptcy In situ uranium recovery company near bankruptcy Financial security: Bonds with guaranty company Financial security: Bonds with guaranty company Total amount: $6.064 million Total amount: $6.064 million Bonds held by two agencies:
Bonds held by two agencies:
- TDH - Groundwater restoration and surface reclamation TDH - Groundwater restoration and surface reclamation
- TNRCC - Plugging and abandonment funds primarily TNRCC - Plugging and abandonment funds primarily
Case Study 2:
The Case of the Faltering Finances Proposal
- Bonding company releases collateral back to company 18-month Agreement
- Uranium Company
- Bond reduction each quarter as groundwater restoration
- Bonding Company proceeds
- TDH
- Approved restoration budget
- TNRCC
- Additional investments for other company operations
- Status of company and U industry to be reviewed after 18 months
Case Study 2:
The Case of the Faltering Finances Advantages Disadvantages
- Company can
- Concerns of local accomplish restoration activist groups and more economically County
- Company may avoid Commissioners bankruptcy
- Risk of reducing financial security
- Restoration proceeds more rapidly
- Unknown future
nn Agreement signed by TDH and TNRCC on Agreement signed by TDH and TNRCC on 9-15-00, all language agreed to 9-28-00 9-15-00, all language agreed to 9-28-00 nn Local TNRCC inspector to inspect Local TNRCC inspector to inspect restoration activities regularly restoration activities regularly nn Bond reduction letter for first quarter Bond reduction letter for first quarter Case Study 2: The Case of the Faltering Finances Case Study 2: The Case of the Faltering Finances Update Update
Case Study 3: The Case of the Case Study 3: The Case of the Reluctant Remittance Reluctant Remittance Waste processing license Source manufacturing license Type and amount of current security:
Bond: $133,518 Decommissioning funding plan estimate (licensee): 1)None
- 2) $165,777 3)$304,632
- 4) $436,347 Cost estimate (TDH): $17,744,467
Case Study 3: The Case of the Reluctant Remittance Case Study 3: The Case of the Reluctant Remittance nn Financial security required for waste Financial security required for waste licenses since 1983 licenses since 1983 nn Waste license condition required $225,000 Waste license condition required $225,000 in 1990 in 1990 nn New financial security rules in effect New financial security rules in effect January 1995 for licensees January 1995 for licensees nn Waste license under timely renewal Waste license under timely renewal History History
Case Study 3: The Case of the Reluctant Remittance Case Study 3: The Case of the Reluctant Remittance nn NOV 10/1/96 for failure to have required NOV 10/1/96 for failure to have required amount of financial security and site amount of financial security and site decommissioning plan decommissioning plan nn Company stated they had provided financial Company stated they had provided financial assurance and decommissioning plan assurance and decommissioning plan nn Letter sent from agency regarding Letter sent from agency regarding requirements for financial security for requirements for financial security for manufacturing license manufacturing license History History (contd)
(contd)
Case Study 3: The Case of the Reluctant Remittance Case Study 3: The Case of the Reluctant Remittance nn Additional NOVs for both licenses -
Additional NOVs for both licenses -
escalations of severity level escalations of severity level nn Meeting at facility to discuss requirements Meeting at facility to discuss requirements for financial security for financial security nn Revised Decommissioning Funding Plan Revised Decommissioning Funding Plan nn Agency found Decommissioning Funding Agency found Decommissioning Funding Plan inadequate Plan inadequate
-- Based on material possessed, not authorized Based on material possessed, not authorized
-- Hourly labor rates underestimated Hourly labor rates underestimated History History (contd)
(contd)
Case Study 3: The Case of the Reluctant Remittance Case Study 3: The Case of the Reluctant Remittance nn No submissions of additional financial No submissions of additional financial security security nn Referred to Attorney Generals Office 12/98 Referred to Attorney Generals Office 12/98 nn Meeting with licensee 2/99; tiered approach Meeting with licensee 2/99; tiered approach suggested to licensee suggested to licensee nn Letter prepared to licensee with Agencys Letter prepared to licensee with Agencys estimate, intent to propose to deny waste estimate, intent to propose to deny waste license renewal and modify manufacturing license renewal and modify manufacturing license 9/00 license 9/00 History History (condt)
(condt)
nn Resolution of disputes on funding amounts Resolution of disputes on funding amounts nn Assumptions for decommissioning funding Assumptions for decommissioning funding plan plan
-- Disposal of GTCC waste Disposal of GTCC waste
-- Authorized material vs. normal possession Authorized material vs. normal possession
-- Accounting for atomic number 3-83 Accounting for atomic number 3-83 authorization authorization nn Training in cost estimates Training in cost estimates Case Study 3: The Case of the Reluctant Remittance Case Study 3: The Case of the Reluctant Remittance Primary Issues Primary Issues