Press Release-96-111, NRC Staff, General Atomics Sign Agreement on Cleanup Funding for Oklahoma Facility

Press Release-96-111, NRC Staff, General Atomics Sign Agreement on Cleanup Funding for Oklahoma Facility

ML003705918
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Issue date:	08/02/1996
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Press Release-96-111
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UnitedStatesNuclearRegulatoryCommissionOfficeofPublicAffairsWashington,DC20555Phone301-415-8200Fax301-415-2234 Internet:opa@nrc.govNo.96-111FORIMMEDIATERELEASE(Friday,August2,1996)NRCSTAFF,GENERALATOMICSSIGNAGREEMENTONCLEANUPFUNDINGFOROKLAHOMAFACILITYTheNuclearRegulatoryCommissionstaffandGeneralAtomicsCorporationhaveaskedanNRCAtomicSafetyandLicensingBoard toapproveasettlementagreementrelatedtocleanupofthe closedSequoyahFuelsCorporationnuclearfuelfacilitynear Gore,Oklahoma.SequoyahFuelsCorporationisasubsidiaryofGeneral Atomics.InOctober1993,theNRCissuedanorderrequiringSequoyahFuelsCorporationandGeneralAtomics(GA)toprovidefundingfor thecleanupoftheGorefacility.SequoyahFuelsCorporationand GArequestedahearingbeforeanAtomicSafetyandLicensing Boardontheorder.TheCherokeeNationandNativeAmericansfor aCleanEnvironmentwereadmittedaspartiestothis administrativeproceeding.Thelattertwoorganizationshave untilAugust9tocommentonthesettlementagreementbeforethe boardapprovesordisapprovesit.Theboard'sdecisionis subjecttotheCommission'sreview.Undertheagreement,GAwillestablisha$9milliontrustfund,forthebenefitoftheNRC,providedthattheInternal RevenueServiceissuesanopinionthatthecontributionstothe trustaretax-deductiblebyGAwhenmadeandtaxableonlywhen distributedfromthetrust.IftheIRSdoesnotagree,GA's contributionstothetrustarecappedat$5.4million.GAhasuntilOctober8toestablishthetrustfund.Thefirstdepositof$600,000or$1,000,000(dependingonIRS actions)istobemadeonOctober18.Furtherfinancialand regulatorydetailsaresetoutintheagreement.AlthoughbothpartiesrecognizetheneedforapprovalbytheAtomicSafetyandLicensingBoard,andpossiblybytheCommission itself,theagreementbecameeffectiveuponexecutiononJuly10.

Theagreementisrevocableiftheboard,theCommission,or anotherFederalagencyoracourtdisapprovesitoranysubstantivepartofit.InconsiderationofthetrustestablishedbyGA,theNRCstaffhasagreedtorescinditsOctober15,1993,orderagainst GA.The1993orderallegedthatGAandSequoyahFuels Corporation,whichGAacquiredin1988,werejointlyand severallyresponsibleforprovidingfundingtocontinue remediationofexistingnuclearcontaminationattheSequoyah Fuelssite.Itfurtherstatedthattheywereresponsiblefor providingfinancialassurancefordecommissioningasrequiredby NRCregulations,andforprovidingbothanupdatedanddetailed decommissioningcostestimateandaplanforensuringthe availabilityofadequatefundsfordecommissioning.TheSequoyahFuelsplantwasoperatedbySequoyahFuelsCorporationfrom1970to1993underanNRClicense.Itconverted uraniumoxide(yellowcake)touraniumhexafluoride,astepinthe productionofnuclearreactorfuel.Asecondprocess,begunin 1987,converteddepleteduraniumhexafluoridetouranium tetrafluoride.SequoyahFuelsformallynotifiedtheNRCin February1993thatitwishedtoterminateitslicense.The licensewillremainineffectuntilradiologicalcontaminationon thesitehasbeencleaneduptomeetNRCrequirements.Duetoextensivecontaminationofgroundwater,soilandstructuresatthesite,NRChasincludedtheGoresiteinthe agency'sSiteDecommissioningManagementPlan.Thesitereceives specialNRCattentionundertheplantoensuresafeandtimely decommissioning.NRCinitiateddevelopmentofanenvironmental impactstatementlastNovembertoconsideralternative decommissioningoptionsandthepotentialimpactsofthose options.FurtherinformationisavailablefromJimShepherd, NRC'sprojectmanagerfortheGoresite,at301/415-6712.