ML24157A047

NRC – DEQ – EPM Project Status Teleconference Notes May 15, 2024

ML24157A047
Person / Time
Site:	07000925
Issue date:	05/15/2024
From:	- No Known Affiliation
To:	Office of Nuclear Material Safety and Safeguards, Document Control Desk
References
Download: ML24157A047 (1)

Text

NRC - DEQ - EPM Project Status Teleconference Notes May 15, 2024 - 2:30 Eastern, 1:30 Central Page 1 of 5 Attendees:

NRC DEQ EPM Jim Smith Paul Davis Jeff Lux Lifeng Guo Jon Reid John Hesemann Christine Pineda Courtney Redmond Stephanie Anderson David Cates Martha Poston-Brown Lee Dooley Kelly Dixon Administrative Issues Request for Waiver per Trust Agreement Section 3.2.5 VNS - Federal Services (VNSFS) prepared the design for all water treatment systems and resin processing systems. Because procurement, installation, and startup are not engineering or architectural services, Section 3.2.5 of the Trust Agreement would require the Trustee to select a contractor by competitive bidding. Section 3.2.5 also enables the appropriate lead agency(-ies) to grant a waiver from the competitive bidding requirement. EPM submitted a letter to the NRC, the DEQ, and the DOJ requesting that they provide a written waiver to allow EPM to retain VNSFS for procurement, installation, and startup. EPM will require VNSFS to demonstrate that all subcontractors and suppliers they retain are selected via competitive bidding.

The NRC, DEQ, and DOJ will collaborate on providing the requested waiver.

Review of the Decommissioning Plan The NRC sent information to the Ecological Services Field Office of the U.S. Fish and Wildlife Service regarding the NRCs assessment of the projects effects on threatened and endangered species (ML24122A742); feedback is anticipated within 60 days. The NRC also sent Section 106 information to the State Historic Preservation Office and the Oklahoma Archeological Society (ML24089A067). A draft Environmental Assessment (EA) will be sent to the DEQ (and EPM if necessary) for review.

A draft Safety Evaluation Report (SER) is being prepared, and a draft will be made available to the DEQ and EPM for feedback. The revision of license conditions are of particular interest to ensure that neither decommissioning operations nor radiation safety could be adversely impacted through any of the provisions of the amended license.

The NRC requested confirmation that any groundwater treatment conducted after license termination will not result in the accumulation of uranium that would require licensing. EPM explained that no treatment for uranium which could result in the accumulation of uranium will be performed after license termination. EPM does not believe the DEQ would authorize any treatment method that would require NRC licensing once the license has been terminated.

The NRC is still on schedule to issue an amended license by the end of 2024.

NRC will send copies of the draft EA and SER to the DEQ and EP when they are ready for review.

NRC - DEQ - EPM Project Status Teleconference Notes May 15, 2024 - 2:30 Eastern, 1:30 Central Page 2 of 5 Bidding and Contracting Process Moved to Status of Work and Submittals Insurance for Facilities The cost to replace or restore the Western Area Treatment Facility, should it be damaged by severe weather (or any other circumstance), could easily be great enough to prevent EPM from being able to complete decommissioning. EPM has considered the need for insurance to reserve funding for remediation.

Section 2.7 of the Trust Agreement states, Only at the direction of the United States and Oklahoma shall the Cimarron Trustee investigate the possible purchase of an insurance policy to cover future Environmental Actions and general liability at the Cimarron Site. EPM requested (during the teleconference) emails from the NRC and the DEQ directing EPM to investigate the possible purchase of insurance to determine if an insurance policy should be obtained.

The NRC suggested that there is already significant language in the Consent Decree and Environmental Settlement Agreement providing the Trustee the ability to acquire appropriate insurance, and has asked Mr. Yalen to explain the intent of the language presented in Section 2.7.

EPM will review the Consent Decree and Environmental Settlement Agreement and the Trust Agreement. EPM will submit a letter regarding the investigation of possible insurance options.

Standby Trust Investment Strategy The Standby Trust is managed by US Bank as Trustee, and EPM is the Grantor of the Trust.

Since the Standby Trust was established in April 2014, it has grown from 3.60 million dollars to 3.719 million dollars - an increase of 3% in ten years (not including administrative fees).

Including administrative fees, the total return was approximately 10% (less than 1% per year).

Some of the Standby Trusts current investments will mature in 2026 or 2027, with annual yields of approximately 0.5%.

The Standby Trust Agreement was prepared to satisfy the requirements of NUREG-1757, Consolidated Decommissioning Guidance. However, the Standby Trust Agreement is more restrictive than NUREG-1757 in terms of the vehicles in which Standby Trust funds can be invested. Section 2.7 of the Standby Trust Agreement states, The Trustee shall invest and reinvest the principal and income of the Fund in accordance with general investment policies and guidelines which the Grantor may communicate in writing to the Trustee from time to time.

Unlike the Cimarron Environmental Response Trust, the NRC is the sole beneficiary of the Standby Trust. EPM desires to meet with US Bank to encourage them to invest Standby Trust funds more aggressively, but without exposing the funds to undue investment risk, to increase the rate of return on Standby Trust funds.

EPM will submit a letter to the NRC regarding its intent to meet with US Bank.

Updated Decommissioning Cost Estimate

NRC - DEQ - EPM Project Status Teleconference Notes May 15, 2024 - 2:30 Eastern, 1:30 Central Page 3 of 5 On April 24, 2024, EPM submitted an updated decommissioning cost estimate (DCE) to the NRC and the DEQ. The updated DCE was based on the value of the Trust accounts as of the end of the year, the approved budget for 2024, and the estimated cost for construction and operation from the 2022 Facility Decommissioning Plan - Rev 3. Due to below-budget expenditures, and a much greater than 1% return on invested funds, the updated decommissioning cost estimate indicated that funding would be sufficient to not only achieve the NRC criteria, but to perform significant post-remediation work.

The updated DCE contained Tables 16-5a (providing estimated costs in 2022 dollars) and 16-5b (escalating costs at 3% per year and a return on invested fund of 1% per year). In reviewing the updated DCE, the DEQ noticed that the annual costs in Table 16-5a were incorrect. EPM determined that because the escalated annual costs in Table 16-5b were based on escalation of the component costs (not the total annual costs) in Table 16-5a, the total annual costs in Table 16-5b are correct.

EPM will submit a revision of the April 24, 2024, letter with a corrected version of Table 16.5a.

Status of Work and Submittals Bidding and Contracting Process Six contracts will be executed for the construction phase, currently scheduled to be completed in 2025:

1. General Contractor (To Be Determined)

a. Civil earthwork

b. Foundations

c. Western area treatment facility (including offices and ancillary equipment)

d. Burial Area #1 remediation facilities (including ancillary equipment)

e. Groundwater extraction and treated water injection trenches

f. Utility, instrumentation, and piping

g. 1206 Drainage remediation and spoils mixing

2. Injection system design, fabrication, delivery, and installation (To Be Determined)

3. Extraction well and monitor well installation (To Be Determined)

4. Water treatment and resin processing system fabrication, delivery, and installation (VNS

- Federal Services)

5. Radiation Protection support throughout construction (ENERCON Services)

6. Engineering Services during construction (Burns & McDonnell)

Pre-qualification packages for #1 and 2 above have been issued. Licensed drillers are considered to be qualified.

Requests for bid will be issued to qualified contractors for #1, #2, and #3 above. Upon receipt of the above-described variance, a request for a cost estimate will be issued to VNS - Federal Services for #4 above. A request for a cost estimate will be issued to ENERCON Services for #5 above and to Burns & McDonnell for #6 above. Bids and cost estimates received for #1 through

1. 5 above will be considered accurate within +/- 10%.

NRC - DEQ - EPM Project Status Teleconference Notes May 15, 2024 - 2:30 Eastern, 1:30 Central Page 4 of 5 Bids will be evaluated and for #1 through #3 above, and EPM will submit to the NRC and the DEQ an evaluation of bids, with a request for NRC and DEQ to approve each of the bidders selected by EPM.

The six +/- 10% bids/estimates we receive will form the basis for a construction funding request prepared by EPM. Separate from the proposed scope of work and budget for 2025, EPM will submit requested funding for construction. EPM plans to submit the construction funding request before the end of October 2024 in an effort to obtain approval of construction funding by the time the amended license is issued.

NRC Inspection NRC Region IV performed an inspection on April 16 - 17, 2024. The inspection was conducted during groundwater and surface water sample collection for the annual environmental monitoring program. Inspection Report 070-00925-2024-001 was issued on April 25, 2024. The inspection report was favorable; no violations were cited, and no response is required.

The inspector noted several opportunities for improvement.

EPM will follow up on recommendations made by the NRC inspector.

Environmental Assessment Status and Safety Evaluation Report Status Addressed in the above Section, Review of the Decommissioning Plan and below in Wetland Delineation.

Annual Environmental Monitoring Program Sampling Event Water samples were collected from 29 monitor wells and 2 surface water locations the week of April 15 - 19, 2024. All samples were analyzed for isotopic uranium mass concentration.

Samples collected from the monitor wells in western areas and both surface water samples were also analyzed for nitrate and fluoride.

Laboratory analytical data was received Friday, May 10th. Following data quality review, the analytical data will be tabulated and submitted to the NRC and the DEQ. In addition, the data from the annual environmental samples will be imported into the EQuIS database, and the Comprehensive Analytical Data spreadsheet (in Excel format) will be updated and submitted to the NRC and the DEQ.

Evaluation of the Area East of BA1 Injection Trench GETR-BA1-01 EPM submitted a letter addressing the potential for surface water seepage due to injection of treated water in GETR-BA1-01 on February 21, 2024. The letter included tabulated data and a figure showing the concentration of uranium in groundwater in this area. The letter also included a proposal to conduct and document visual observations of the area of concern on a monthly basis during monthly routine radiological surveys.

NRC - DEQ - EPM Project Status Teleconference Notes May 15, 2024 - 2:30 Eastern, 1:30 Central Page 5 of 5 On March 20, 2024, the NRC informed EPM that the responses were satisfactory. The DEQ met with EPM on April 4, 2024, to discuss the letter, and two issues were identified:

1. The Comprehensive Analytical Data spreadsheet used to tabulate the data was missing some data for uranium in groundwater in this area.

2. There was no recent (within the past 7 years) data for some of the locations shown in the Figure.

In a letter dated May 7, 2024, the DEQ proposed the collection and analysis of groundwater samples to establish a baseline concentration for uranium before trench operations.

In addition, EPM attempted to conduct a visual survey of the area, and discovered that the wooded area has become so thick with underbrush that visual observation for seepage isnt currently practical.

EPM will update the table, including data for locations not included in the February 21 letter, revise the figure accordingly, and resubmit a letter related to the potential for surface water seepage in BA1. EPM will consult with Mills Construction (the subcontractor the provides site maintenance work) regarding mowing or otherwise removing much of the underbrush in this area so it can be visually surveyed in the future.

Wetland Delineation The last time a wetland survey was conducted to determine if the construction of proposed groundwater remediation infrastructure would impact wetlands was in 2015. Burns &

McDonnell conducted a wetland delineation at the site on May 8-9, 2024. The NRC requested an updated wetlands map that would replace the map provided in response to requests for additional information related to the EA.

EPM will submit the completed wetlands report to the NRC and the DEQ.

Date and Time of Next Teleconference Via Microsoft Teams on June 19, 2024, at 2:30 Eastern, 1:30 Central