ML24235A519
| ML24235A519 | |
| Person / Time | |
|---|---|
| Site: | 07000925 |
| Issue date: | 08/21/2024 |
| From: | Hesemann J Cimarron Environmental Response Trust |
| To: | James Smith Office of Nuclear Material Safety and Safeguards, Document Control Desk |
| References | |
| Download: ML24235A519 (1) | |
Text
9400 Ward Parkway
- Kansas City, MO 64114 Tel: 405-642-5152
- jlux@envpm.com August 21, 2024 Mr. James Smith U.S. Nuclear Regulatory Commission 11555 Rockville Pike Rockville, MD 20852-2738 Ms. Rachel Miller Oklahoma Department of Environmental Quality 707 North Robinson Oklahoma City, OK 73101 Re: Docket No. 07000925; License No. SNM-928 Cimarron Environmental Response Trust Semi-Annual Report of Projected Administrative Expenses
Dear Recipients:
Solely as Trustee for the Cimarron Environmental Response Trust (CERT), Environmental Properties Management LLC (EPM) submits herein an update of anticipated future Administrative Costs of the Cimarron Trust in accordance with Paragraph 2.4.5 of the Cimarron Trust Agreement. This letter provides an update of projected administrative expenses.
Routine Administrative Support Routine administrative support involves:
Maintaining the property owned by the CERT Paying taxes (and insurance as appropriate)
Managing the Trust accounts (including submitting quarterly financial statements)
Contracting for decommissioning services Reviewing and paying invoices for work performed for the CERT Preparing annual scope of work and budget submittals Providing legal support as needed From 2011 (when the CERT was established) through 2023, annual expenditures from the Administrative Account have averaged $184,872. Two activities that are unique to this year (2024), and the impact they may have on administrative expenses, are described herein.
Continuity Planning The U. S. Nuclear Regulatory Commission (NRC) and the Oklahoma Department of Environmental Quality (DEQ) have both experienced the departure of key personnel who had numerous years of experience with the development and administration of the CERT, the transfer of the NRC license to the CERT, and the characterization and decommissioning of the Cimarron site. Both agencies have experienced the difficulties presented when those with institutional knowledge and familiarity with both legal and technical issues related to the decommissioning of the site are no longer involved with the project.
Cimarron Environmental Response Trust Semi-Annual Report of Projected Administrative Expenses Page 2 of 3 Both the NRC and the DEQ have expressed concern about the loss of this knowledge upon the retirement of Jeff Lux, the Trustee Project Manager for the CERT since its inception, and have requested that EPM implement a process to transfer as much of this knowledge to personnel who will be able to continue managing decommissioning of the Cimarron site. EPM has engaged in a continuity planning process during which Mr. Lux is generating detailed descriptions of historical decommissioning issues and activities, document management systems, and regulatory communications. Mr. Lux is also conducting training of several personnel to whom different responsibilities will be transferred upon his retirement.
EPM provided a total of 40 hours4.62963e-4 days <br />0.0111 hours <br />6.613757e-5 weeks <br />1.522e-5 months <br /> for continuity planning in the proposed budget for 2024. It is becoming apparent that the substantial time required to develop and implement this plan was not adequately provided for in the budget approved for 2024.
Legal Expenses EPM included $10,000 for legal expenses in the proposed budget for 2024. Because the Master Services Agreements EPM executes with its contractors is not appropriate for construction services, EPM has engaged Stinson LLP to assist EPM in the preparation of contracts for:
VNS-Federal Services - to fabricate, deliver, and install water treatment and resin processing systems A Licensed Driller - to abandon monitor wells and install both groundwater extraction wells and new monitor wells A General Contractor - to construct the Western Area Treatment Facility, the Burial Area
- 1 Remediation Facility, groundwater extraction and treated water injection trenches, and run piping, utilities, and instrumentation from all extraction and injection components to treatment systems A Treatment System Company to advance the design for and then fabricate, deliver, and install treated water injection systems Each of these scopes of work is sufficiently distinct that contracts, terms and conditions, and insurance requirements for each one are different. In addition, EPM will likely engage Stinson to assist in the negotiation of contracts and commercial terms with the selected contractors. EPM estimates that the cost for legal assistance in the preparation of these contracts in 2024 will be approximately $50,000.
Conclusion The approved budget for administrative support in 2024 (extending through the first quarter of 2025) is $379,090. EPM does not expect 2024 routine administrative expenses (i.e., after excluding these new continuity planning and legal expenses) to exceed the historical average for annual administrative expenses. At this time, EPM does not believe that approval to increase the approved budget for administrative expenses is necessary. EPM will continue to monitor administrative expenses and will notify the NRC and the DEQ should additional funding need to be approved for the administration of the Trust.
Page 3 of 3 Cimarron Environmental Response Trust Semi-Annual Report of Projected Administrative Expenses If you have any questions or desire clarification, please call me at (405) 642-5152.
Sincerely, John R. Hesemann Trust Administrator cc: (electronic copies only)
Rob Yalen, Office of the United States Attorney for the Southern District of New York Stephanie Anderson and Linda Gersey, NRC Region IV Paul Davis, Keisha Cornelius, Courtney Redmond, Lee Dooley, David Cates, and Jonathan Reid, DEQ NRC Public Document Room vcpsubmittals@deq.ok.gov