ML25050A053
| ML25050A053 | |
| Person / Time | |
|---|---|
| Site: | 07000925 |
| Issue date: | 02/19/2025 |
| From: | Environmental Properties Management |
| To: | Office of Nuclear Material Safety and Safeguards, Document Control Desk |
| References | |
| Download: ML25050A053 (1) | |
Text
NRC - DEQ - EPM Project Status Meeting Notes January 22, 2024 - 2:30 Eastern, 1:30 Central Page 1 of 4 Attendees:
NRC DEQ EPM Lifeng Guo Paul Davis Jeff Lux Christopher Robinson John Hesemann Rachel Miller Matt Crawford David Cates Jon Reid Kelly Dixon Courtney Redmond Administrative Issues Standard Release, Waiver, and Indemnity Form Article 13.2 of the Master Professional Services Agreement (MPSA) that EPM has used in the past states Each Representative of Contractor and any subcontractor engaged by Contractor to perform any part of the Services shall execute and deliver to the Trust a release, waiver, and indemnity in the form attached hereto and incorporated herein as Exhibit C, prior to entering or performing any Services on the Property. During a January 7th call with DEQ and Robert Yalen of the Department of Justice (DOJ)(Jim Smith could not attend), Robert indicated that in general he had no objection to EPM revising Article 13.2 so that only Contractors authorized representative be required to sign Exhibit C of the MPSA (Standard Release, Waiver, and Indemnity Form). However, he did suggest that EPM review the Trust agreement and MPSA to determine if any approval by the DOJ, the NRC, or the DEQ is required and also confirm that the MPSA used by the Multistate Environmental Response Trust (MERT) stipulates that only Contractors authorized representatives must sign MPSA Exhibit C. EPM has confirmed that the MERT only requires the Contractors authorized representative to sign Exhibit C. EPM is awaiting guidance from legal counsel regarding any applicability of the Trust Agreement to the MPSA. Additionally, EPM is requested legal counsel to provide an assessment of the potential liability to the Trust should EPM stop requiring all persons working on the Site to sign Exhibit C.
Christopher Robinson with DEQ also requested EPM to evaluate the potential exposure in the event that Contractors hire contract laborers who are not employees of the Contractor and thereby may not be covered by the Contractors authorized representative signing the waiver.
EPM will provide an update and recommend a path forward based on guidance received from legal counsel during the February project status meeting.
SW 1/4 of Section 12 Deed Restriction EPM sold the SW 1/4 of Section 12 to Cimarron Holdings in 2017. At the request of the DEQ and NRC, the following use restrictions were included in the quit claim deed filed in the Logan County Assessors office.
Section 5.4 - Use Restrictions. It is understood that subsequent use of the Property may include manufacturing, commercial, or industrial activities. The Buyer and the Property shall be subject to the following use restrictions (collectively, "Use Restrictions"):
NRC - DEQ - EPM Project Status Meeting Notes January 22, 2024 - 2:30 Eastern, 1:30 Central Page 2 of 4 (a) Tanks containing greater than 55 gallons of fuel or chemicals will be installed above ground if outdoors, and above slab if indoors, and will have secondary containment capable of containing minimum of 110% of the total volume of all tanks within the containment.
(b) Piping carrying fuel or chemicals other than sanitary water shall be installed above grade if outside of buildings, or above slab if inside of buildings.
(c) Firearms shall not be allowed on the property.
The foregoing Use Restrictions will run with the land and will be binding upon the Buyer and Buyer's successors, assigns and legal representatives. The Use Restrictions will be an Exhibit to the Deed. The Use Restrictions shall automatically terminate and be of no further force and effect upon the date the Cimarron Environmental Response Trust terminates.
The foregoing Use Restrictions will run with the land and will be binding upon the Buyer and Buyer's successors, assigns and legal representatives. The Use Restrictions will be an Exhibit to the Deed. The Use Restrictions shall automatically terminate and be of no further force and effect upon the date the Cimarron Environmental Response Trust terminates.
Cimarron Holdings later sold the property to AM Investments, LLC in 2019. Arron Whitfield, owner of AM Investments, LLC, is interested in constructing a residential development on the land and is concerned about the firearms shall not be allowed on the property restriction. He would like to have that restriction revised to allow for the possession of firearms.
In a January 7, 2025, call with DEQ and Robert Yalen (Jim Smith could not attend), Robert and DEQ indicated that they did not have any objections to the current owner pursuing a change in the deed restriction related to firearms. Roberts main concern was that the Trust should not take on the cost burden for making the change and that that burden should lie with the owner and that the Trust should have right to refuse any suggested revisions. Paul Davis also requested that the revised deed restriction language stipulate that the owner of the property would be held liable for any damages caused to the Trust should the owner violate the use restrictions.
EPM will discuss this topic with Jim Smith. Barring objection from Jim Smith, EPM will speak with Arron Whitfield and inform him that currently the Trust and its Beneficiaries do not have any objections with AM Investments, LLC moving forward with revising the firearm restriction. EPM will also inform them that they will need to carry the burden of making the change; however, EPM will request that the owner provides the Trust with their proposed language, to include owner liability requested by DEQ, for review and the Trust retains the right to object to the proposed revisions.
2024 Q4 & Annual Financial Report EPM will distribute the 2024 Q4 & Annual Financial Report by January 28, 2025.
Note: 2024 Q4 & Annual Financial Report was ultimately distributed on January 30, 2025.
NRC - DEQ - EPM Project Status Meeting Notes January 22, 2024 - 2:30 Eastern, 1:30 Central Page 3 of 4 Proposed Scope of Work and Budget for 2025 Submittal of a proposed scope of work and budget for 2025 has been delayed due to changes in the scope of work resulting from the schedule extension related to the contractor bid request, bid preparation, and contractor selection process. The proposed scope of work and budget will include administrative, license compliance, and decommissioning support (including engineering support during construction) but does not include the costs to construct the remediation system or the procurement of the water treatment systems equipment or injections skids.
EPM has scheduled submission of a proposed scope of work and budget for 2025 on January 22, 2025.,
Approval to Retain Contractors In a December 23, 2024, letter, EPM requested DEQ and NRC approval to retain Burns &
McDonnell for administrative and financial support (per Section 4.4 of the Trust Agreement) and engineering support (per Section 3.2.5 of the Trust Agreement). Upon further review, it became clear that similar approval is required for all of EPMs contractors. As a result, EPM intends to retract the December 23, 2024, letter (as it only addresses Burns & McDonnell) and include requests for approval to retain the following contractors in the proposed Scope and Budget for 2025, scheduled to be submitted January 22, 2025:
- Burns & McDonnell - Administrative Support
- Burns & McDonnell, Enercon, and VNSFS, - Engineering Services
- Stinson - Legal Counsel
- Mills Construction - Site Maintenance Plan for Community Engagement Kelly Dixon pointed out that as the land use surrounding the Site changes and we approach construction, EPM, DEQ, and NRC need to evaluate the community involvement approach moving forward.
EPM will coordinate a following up meeting with DEQ and NRC to discuss the community involvement approach to the project moving forward.
Status of Work/Submittals Obtaining Bids for Remediation General Contractor - In December 2025, EPM requested that O6 Environmental (O6)(only current contractor to offer bid) request new bids from subcontractors to reduce their overall cost.
In early December, EPM identified another potential GC bidder, Williams Construction, who indicated interest in offering a bid. In December 2024, EPM submitted a Request-for-Bid (RFB) to Williams Construction; however, while Williams Construction did signal interest in bidding on the project, they informed EPM on January 7, 2025, that their underwriter would not agree to insure them for this project. As a result, Williams Construction indicated that they would not be able to offer a bid. EPM received O6s revised bid on January 3, 2025, and is working through the process of conditioning their bid.
NRC - DEQ - EPM Project Status Meeting Notes January 22, 2024 - 2:30 Eastern, 1:30 Central Page 4 of 4 EPM will continue the review of O6s bid. If EPMs review results in the recommendation to select O6 as General Contractor, EPM will submit a request for NRC and DEQ to approve O6 as General Contractor.
VNSFS & Injection Skid Procurements -EPM now has a draft procurement of goods agreement which EPM anticipates will be finalized in January.
Once finalized, EPM will submit the agreements to VNSFS and the injection skid vendors and request they update and submit their bids a maximum of two weeks after receiving the agreements.
Drilling - EPM received bids from two of the three drillers included in the RFB. Both bidders are qualified to complete the work and offered similar schedules; however, Associated Environmental Industries (AEI) of Norman, Oklahoma offered a lower price and also has previously executed multiple monitoring well installation, development, and abandonment projects at the Site.
EPM will submit a request for NRC and DEQ to approve AEI as drilling contractor. EPM will notify AEI that they have been conditionally selected pending NRC and DEQ approval.
Construction Status EPM anticipates submitting a construction funding request to the agencies in February 2025.
Following agency approval, EPM will execute contracts with the selected general contractor, VNSFS (water treatment system procurement), the selected injection skid vendor, and the selected drilling contractor and the associated vendors/engineers will proceed with advancement of designs to 100% Issue-for-Construction (IFC) status. EPM is currently projecting procurements and IFC design advancement to begin in April 2025 followed by construction mobilization in the late second quarter 2025. This is based on Lead Agency approval of the construction funding request by the end of March 2025 and the latest schedules provided by VNSFS (Water Treatment System equipment procurements) and O6 (construction schedule).
Date and Time of Next Teleconference Via Microsoft Teams on February 19, 2025, at 2:30 Eastern, 1:30 Central