Anda di halaman 1dari 180

FEASIBILITY STUDY FOR BECOMING AN AGREEMENT STATE

UNDER THE ATOMIC ENERGY ACT OF 1954 FOR THE

REGULATION OF SOURCE MATERIAL RECOVERY AND 11E.(2)

BYPRODUCT MATERIAL

Prepared for the State of Wyoming Pursuant to Enrolled Act No. 100

Prepared by Thompson & Pugsley, PLLC

Anthony J. Thompson, Esq.

Christopher S. Pugsley, Esq.

November 2013
STATEOFWYOMINGAGREEMENTSTATEFEASIBILITYSTUDY
EXECUTIVESUMMARY
PREAMBLE
PursuanttoaservicescontractexecutedbyandbetweenThompson&Pugsley,PLLC
andtheStateofWyominginAprilof2013,Thompson&Pugsley,PLLCispleasedtosubmitthis
feasibilitystudyinaccordancewiththeStateofWyomings(theState)Houseof
RepresentativesEnrolledActNo.100(EnrolledAct)passedintheSixtySecondLegislatureof
theStateofWyoming,2013GeneralSession.Priortoengaginginactivestudyofthe
methodologyassociatedwithbecominganAgreementStateandtheresponsibilitiesassociated
withsuchanAgreement,thePreamblesetsforththescopeofthisfeasibilitystudypursuantto
theEnrolledActandthemannerinwhichthestudysanalysiswillbeconducted.Thompson&
Pugsley,PLLCbelievesthatthestudyformatdescribedbelowwillprovidethereaderwitha
clearviewoftheprocesstobecomeanAgreementState,thestrategicdecisionsinvolvedin
thatprocess,andanunderstandingoftheregulatoryissuesandresponsibilitiesassociatedwith
themaintenanceofanAgreementStateprogramafterreceivingapprovalfromtheUnited
StatesNuclearRegulatoryCommission(NRC).

FEASIBILITYSTUDYSCOPE
TheStatesEnrolledActsetsforththeparametersforconductingthisfeasibilitystudy
withrespecttothetypesofAtomicEnergyActof1954,(AEA)asamendedbytheUranium
MillTailingsRadiationControlActof1978(UMTRCA),materialsandoperationsforwhichthe
StatepotentiallycanseekAgreementStatestatusunderSection274oftheAEA.Section1of
theEnrolledActspecificallystatesthatthefeasibilitystudyisintendedtocoverthelicensingof
sourcematerialandsourcematerialrecovery.1TheEnrolledActslanguageimpliesthatthe
intendedscopeofthefeasibilitystudyisfocusedonrecoveryofsourcematerial(eithernatural
uraniumand/orthoriuminanyform)2andthewastesassociatedwithrecoveryofsuchsource
materialfromoresprocessedprimarilyfortheirsourcematerialcontent(i.e.;11e.(2)byproduct
materialpursuanttoUMTRCA).Whilesourceand11e.(2)byproductmaterialareaddressedin
AEASections(11(z)and11(e)respectivelytheprocessbywhichsourcematerialisrecoveredat
AEAlicenseduraniumrecoveryfacilitiesandthe11e.(2)byproductmaterialgeneratedasa
resultofsuchuraniumrecoveryoperationsarepartofaclassofAEAlicensedoperationsthat
willbecalledsourcematerialrecovery/millinginthisfeasibilitystudy.TheseAEAoperations
areexpresslyrecognizedtoencompassboththegenerationofthetwoaforementionedAEA
materialsatNRClicensedsourcematerialrecoverymillsaswellassuchmaterialsgeneratedin
Section274AgreementStatesthathaveacceptedauthority.3Thus,itisThompsonandPugsley,

1
EnrolledActatSection1(Exhibit1).
2
Asapracticalmatter,althoughthetermsourcematerialincludesbothuraniumandthorium,
Thompson&Pugsley,PLLCassumesthatthisfeasibilitystudywillbeaddressingsourcematerialuranium
recovery.
3
SeveralexamplesoffinalSection274Agreementsareincludedforreferencepurposes(Exhibit2).
PLLCsconclusionthattheintendedscopeofthisfeasibilitystudyistoaddressonlysource
materialrecoveryanditsrelatedAEAmaterials(i.e.;sourcematerialand11e.(2)byproduct
material).

FEASIBILITYSTUDYFORMAT
Withthatsaid,thefeasibilitystudywilladdressdirectlyallparametersindicatedin
Section1oftheEnrolledAct,andanyotherparametersthatwillprovideinsightinto
understandingtheprocesstobecomeanAgreementStateandtooperateandmaintainan
approvedAgreementStateprogram.Thesestudyparameterswillbeincorporatedathree
tiered,processflowapproachthataddressesthreedistinctphasesoftheprocess.

DESCRIPTIONOFFEASIBILITYSTUDYANALYTICALCATEGORIES

Thefollowingdiscussionwilloutlinethethreetiered,processflowapproach
recommendedbyThompson&Pugsley,PLLCfortheStatetofollowifitdecidestopursueNRC
AgreementStatestatus.Thethreecategoriesthatwillbeutilizedinthisfeasibilitystudyare:
(1)ApplyingforandBecominganAgreementState;(2)TransitiontoAgreementStateStatus;
and(3)OperationandMaintenanceofAgreementStateStatus.Thompson&Pugsley,PLLC
believesthatthisapproachwillbebeneficialonanumberoffrontsincludinghistoricaland
factualinformation,budgetaryanalysis,andstaffing.

HISTORICALPREFACE

PriortoprovidingtheforegoingprocessflowbreakdownofThompson&Pugsley,PLLCs
suggestedapproachforpursuingAgreementStatestatus,theidentifiedcandidateAEAprocess
ofsourcematerialrecoveryandAEAmaterial11e.(2)byproductmaterialcurrentlyare
addressedbyarobustregulatoryprogramthathasdevelopedingreatdetailsincethe1978
passageofUMTRCA.Overthatthirtyfive(35)yeartimeperiod,NRCanditscurrentAgreement
Stateshavedevelopedaratheruniqueandcomprehensiveapproachtoregulatingsource
materialrecoveryfacilitiesandinterpretingsuchfacilitieslicenses.Giventhatthespecifically
identifiedpurposeoftheEnrolledActandthisfeasibilitystudyistoinvestigatethepotentialfor
becominganAgreementStatetoeliminatedualjurisdictionissuesbetweentheStateandNRC,
acompletehistoricalprefaceisprovided.

Theinitialpurposeofthishistoricalprefaceistoprovidethereaderwithacomplete
understandingofthescopeofregulatoryauthoritythattheStateisseekingtoobtainfromNRC.
WhiletheEnrolledActmentionspotentialAgreementStatejurisdictionoversourcematerial
andsourcematerialrecovery,theexplicitidentificationofresolvingdualjurisdictionissuesin
theEnrolledActonlyappliestosourcematerialrecovery.Basedonthisconclusion,this
feasibilitystudyhasbeendevelopedtoaddressonlysourcematerialrecoveryfacilitiesand
thesourcematerialand11e.(2)byproductmaterialgeneratedatsuchfacilities.

2

Inordertoproperlyunderstandthescopeofthisfeasibilitystudyandtheregulatory
frameworkgeneratedbyUMTRCAandNRCregulationsoverthepast35years,thisstudys
initialhistoricalsectionsprovideacompletediscussionofthereasonsbehindUMTRCAs
developmentandpassageasitamendstheAEAandtheprocessbywhichNRCpromulgatedits
initial,andlaterrevised,sourcematerialrecoveryregulationsandrelatedguidanceandother
policybaseddocuments.WhilethesubstanceofthisPrefaceistoprovideahistoricalframeof
reference,thereareseveralkeypointsdiscussedinthesesectionsthataddressitemswhichthe
StatewillneedtoevaluatethroughoutthecourseoftheAgreementStateprocess,ifitintends
toproceedforward.

TheAEAwaspassedfirstin1946,andlateramendedin1954,providingthethenAtomic
EnergyCommission(AEC)withauthoritytopromotethepeacefuluseofatomicenergyand,in
partthereof,toissuelicensesforsourcematerialrecovery.Tothecontrary,NRCisan
independentregulatoryagencywiththeauthoritythereviewlicenseapplicationsandissue
licensesforsourcematerialrecovery,butitisnotempoweredtoactivelypromotesuchactivity.
Beinganindependentregulatoryagency,NRCisnotdirectlysubjecttothesubstantiveaspects
oftheNationalEnvironmentalPolicyAct(NEPA)(butrathertheproceduralaspects).Further,
underitsAEAgrantedauthority,NRCslicensingactionreviewauthorityislimitedtooneof
threepossibleoutcomes:(1)approve,(2)approvewithconditionsor(3)deny.SinceNRCcan
onlyactonlicenseapplicationssubmittedtoit(exceptincasesofimminenthazards),asa
generalpropositionundertheAEA,thelicenseeisprimarilyresponsibleforthesafeand
effectivemanagementofAEAmaterialsandoperations.

NRCsjurisdictionalscoperegardingthegenerationofsourcematerialisdividedinto
twoseparateintentbasedoperations.Thefirstoperationwhereageneratorofsource
materialisnotgeneratingsuchmaterialfromoresprimarilyforthesourcematerialcontent,
NRCsstatutorymandateappliesonlytothesourcematerialgeneratedandnottothewastes
generatedbysuchprocesses.Suchsourcematerialissubjecttoatwotieredregulatory
approach,thefirstofwhichiswhetherthegeneratedsourcematerialrequiresanAEAlicense
atall.Section62oftheAEAstatesthatlicensesshallnotbeissuedforquantitiesofsource
materialdeemedtobeunimportant.Accordingly,basedoncurrentNRCregulations,ifa
generatorgeneratesandpossessesonlyunimportantquantities,noAEAlicenseisrequired.

Underthesecondtierofthisregulatoryapproach,ifmorethanunimportant
quantitiesisgenerated,eitherageneralorspecificAEAlicensewillberequired.Theformer
licensetypedoesnotrequireanNRCorAgreementStatelicenseapplicationotherthanthe
completionofasimpleformanddoesnotrequirecompliancewithamultitudeofspecific
licenserequirementssuchasradiationprotectionandfinancialassurance.Thelatterlicense
typerequiresacompleteNRCorAgreementStatelicenseapplicationfollowingapplicable
agencyguidanceandcompliancewithallspecificlicensingrequirements,includingthe
aforementionedradiationprotectionandfinancialassurancerequirements.

Thesecondtypeofintentbasedsourcematerialgenerationisreferredtoassource
materialrecoveryinthisfeasibilitystudy.Asstatedabove,thefirstclassofsourcematerial

3

generationisnotdeemedtoberecoverybecauseitsprimaryintentisnottorecoverthe
sourcematerial;butrathertoperformsomeotherformofactivitysuchasremediatingawater
source,whichresultsingenerationofsourcematerialasabyproduct.However,inthecaseof
sourcematerialrecovery/milling,thegeneratorisprocessingsourcematerialbearingores
primarilyforthesourcematerialcontent.Thus,thisnecessitatesasourcematerialrecovery
ormillinglicense.PursuanttoUMTRCAin1978,Congressdeterminedthatmilltailingsand
otherwastesgeneratedfromsourcematerialrecovery/millingoperationsposedaunique
threattopublichealthandsafetyandneededspecialcontrolslimitpotentialpublicexposure.

UMTRCAcreatedanewAEAmaterialknownas11e.(2)byproductmaterial.11e.(2)
byproductmaterialisbroadlydefinedtoencompassallwastesassociatedwiththegeneration
ofsourcematerialatAEAlicensedsourcematerialrecoveryfacilitiesbyprocessingores
primarilyfortheirsourcematerialcontent.Thematerialsencompassedwithinthescopeofthe
term11e.(2)byproductmaterialincludeamultitudeofwastestreamsincluding,butnot
limitedto,milltailings,processfluids(e.g.,ISRbleed),restorationfluids,contaminatedsoilsand
evenmillcontaminatedcomponents.Theterm11e.(2)byproductmaterialnotonly
encompasseseachofthesetypesofmaterials,butitalsoincludesboththeradiologicaland
nonradiologicalcomponentsofsuchmaterials.Asisdiscussedbelow,andinthefeasibility
studyingreatdetail,thisfactistheprimarycauseofdualjurisdictionissuesassociatedwith
11e.(2)byproductmaterialspanningthetimeframeof19782000.

TheremainingdiscussionsofUMTRCA,itsdevelopment,anditspotentialinfluenceon
thedevelopmentofaStatesAgreementStateprogramliesinthecompliancerequirementsin
NRCregulations.UnderUMTRCA,CongressdesignatedEPAastheleadagencyforthe
promulgationofgenerallyapplicablestandardsfortheregulationof11e.(2)byproductmaterial
duringactiveoperations,sitereclamation,anddecommissioninganddecontamination(D&D).
AfterthesestandardswerepromulgatedbyEPA,UMTRCArequiresthatNRCpromulgate
regulationsthatconformtothesestandards.Whilethisapproachseemsstraightforward,the
initialpromulgationoffinalEPAstandardsandfinalNRCconformingregulationstook
approximatelyten(10)yearsafterfinalpassageofUMTRCA.

Attheendofthattimeframe,NRCfinalhadacompletesetofregulationsfor
conventionalsourcematerialrecoveryandmanagementof11e.(2)byproductmaterial,which
arefoundat10CFRPart40,AppendixA.WhiletheCriterialocatedatAppendixAarediscussed
ingreatdetailinthefeasibilitystudy,itisworthhighlightingafewpoints.First,AppendixA
Criteriawerecreatedasbroadperformanceorientedcriteriaratherthanprescriptive
requirements.Second,theseperformanceorientedcriteriaweredesignedtoallowfor
flexibilityinimplementationprimarilyduetothefactthatallsourcematerialrecoverysites
havesitespecificaspectsthatmayinfluenceproperapplicationofAppendixAsrequirements.
Thus,NRCallowslicenseesseekingtoapplysuchrequirementstoseekapprovalofsitespecific
alternativestosatisfysuchrequirements.Perregulation,NRCrequiresthatsuchalternatives
beatleastasstringent,ifnotmorestringent,thanAppendixArequirementstosafelyrecover
sourcematerialandtostabilizeandcontainall11e.(2)byproductmaterial.Further,10CFRPart
40,AppendixA,Criteria9&10specificallyaddressfinancialassuranceforsourcematerial

4

recoveryfacilitiesbothduringactiveoperationsandsiteD&D,aswellaswhenaclosed
conventionalmilling(orheapleaching)siteistransferredtoDOEforfinallongtermsurveillance
andmonitoring(LTSM).

ThelastcriticalelementofNRCsconventionalsourcematerialrecoveryprogram
worthhighlightinghereistheUMTRCASection83requirementthattitletoall11e.(2)
byproductmaterialmustbetransferredtoeithertherecoveryfacilitysresidentStateorDOE
forLTSM.Thetransferofthismaterial,andthelandnecessarytocontainsuchmaterial,must
bedonesimultaneouslywithNRCterminationofthelicenseeslicenseandthereceivingentity
becomesagenerallicenseeofNRCinperpetuity.Thistransferalsomustbedoneatnocostto
thegovernment,thustheCriterion10requirementmentionedaboveforlicenseecontribution
totheUnitedStatesTreasuryforLTSM.ThisfactorbecomesimportanttoWyomings
considerationofAgreementStatestatus,becauseNRCmaintainsfinalsignoffauthorityonall
licenseterminationandpropertytransferanditwilldefinetheclassoflicenseesWyomingwill
regulateuponsuccessfultransitiontoAgreementStatestatus.

Asstatedpreviously,theEnrolledActsmandateforthisfeasibilitystudyandseeking
AgreementStatestatusforsourcematerialrecoveryistoeliminatedualjurisdictionissues.
Thisfinalportionofthehistoricalprefaceinthisfeasibilitystudyprovidesthereaderwithan
overviewofhowdualjurisdictionissuesstartedandlaysthefoundationforthedispute
betweenNRCandStatesoverthesubsurfaceactivitiesofISRsourcematerialrecovery
operations.Essentially,immediatelyafterthepassageofUMTRCA,Statesbelievedthat,legally,
theyretainedactiveregulatoryjurisdictionoverthenonradiologicalcomponentof11e.(2)
byproductmaterial,whileNRChadauthorityovertheradiologicalcomponents.Thissocalled
concurrentjurisdictionissuereceivedfulllegalreviewfromNRCsOfficeoftheExecutive
LegalDirector(OELD)(nowtheOfficeoftheGeneralCounsel(OGC)).Initially,theOELD
concludedthatthelegalevaluationofthisissuewassoclosethatconcurrentjurisdiction
waslegallypermissible:

[W]econcludethatthequestionissoclosethattheCommissioncouldreasonably
chooseeitherinterpretation,butthatthebetterlegalviewis
thatnonAgreementStatesandtheNRChaveconcurrentjurisdictionto
regulatethenonradiologicalhazardsofmilltailings,bothbeforeand
aftertheNovember8,1981dateuponwhichtheMillTailingsActbecomes
fullyeffective.4

However,sourcematerialrecoverylicenseesandtheNationalMiningAssociation
(NMA)disagreedwiththislegalpositionandpreparedaWhitePaperforsubmissiontoNRCfor
reviewin1997.InthisWhitePaper,NMAanditsmemberlicenseesarguedthattheOELD
opinionwasindirectconflictwithfederallawastheAEA,asamendedbyUMTRCA,specifically

4
MemorandumfromHowardK.Shapar,ExecutiveLegalDirector,NRC,toChairmanAhearne.NRC,
OELDLegalOpiniononTwoQuestionsRelatingtotheOperationoftheUraniumMillTailingsRadiation
ControlActof1978,AttachmentB,23(April28,1980)(emphasisadded).

5

addressedboththepotentialradiologicalandnonradiologicalhazardsassociatedwith11e.(2)
byproductmaterial:

theCommissiondeemsappropriatetoprotectthepublichealthand
safetyandtheenvironmentfromradiologicalandnonradiological
hazardsassociatedwiththeprocessingandwiththepossessionand
transferofsuchmaterial,takingintoaccounttherisktothepublic
health,safety,andtheenvironment,withdueconsiderationofeconomic
costsandsuchotherfactorsastheCommissiondeemsappropriate.5

ThisargumentbyNMAhighlightedthepotentialdual/overlappingjurisdictionbetweenNRC
andStatesoverremedialactionprogramsinvolvingthenonradiologicalcomponentof11e.(2)
byproductmaterialatsourcematerialrecoveryfacilitiesandthepotentialforsuchconflict
impedingeventualtransferofasitetoDOEforLTSM.

Three(3)yearsaftersubmissionofthisNMAWhitePaperandconsiderationofitslegal
positionbyNRCStaffandtheCommission,itwasdeterminedbytheCommissionthat,through
theAEAasamendedbyUMTRCA,NRCmaintainsexclusive,federalpreemptivejurisdictionover
boththeradiologicalandnonradiologicalcomponentsof11e.(2)byproductmaterial,thus
removingtheStatefromallaspectsofitsregulation.Thislegalpositionhasbeenaggressively
maintainedsincetheyear2000andshowsnosignsofbeingaltered.

Otherdualjurisdictionissueshavebeenspawnedfromtheconcurrentjurisdiction
decisionasNRCsUMTRCAbasedregulatoryprogramhascontinuedtoevolve.First,asISR
operationshavebecomethepredominantformofsourcematerialrecoveryintheUnited
States,industryraisedaquestionastowhetherthesubsurfaceactivitiesatISRfacilitiesare
NRCregulatedactivities.Thesame1997NMAWhitePaperarguedthatNRC,hadnoregulatory
jurisdictionoverthewellfields(i.e.,subsurfaceactivities)atISRfacilities.Unlikethe
concurrentjurisdictiondecisionwhereitconcurredwithNMAsposition,theCommission
disagreedwithNMAspositiononjurisdictioninISRwellfieldsand,further,determinedthat,in
additiontoregulationofISRoperations,restorationfluidsatsuchfacilitiesare11e.(2)
byproductmaterialand,thus,underitsexclusive,federalpreemptiveregulatoryauthority

Asaresultofthissocalledmillingundergrounddecision,NRCStaffwasforcedto
determinehowandifitscurrent10CFRPart40regulationsandAppendixACriteria,which
originallywereintendedonlyforconventionalsourcematerialrecovery,applytosuchISR
operations.SinceNRCdidnotengageinthepromulgationofISRspecificregulations,NRCStaff
determinedthatPart40andAppendixAshouldbeappliedtoISRoperationsonanas
appropriatebasis.ThisresultsintheissuanceoflicenseconditionsinterpretingPart40and
AppendixArequirementsregulatingISRlicensees.

5
42U.S.C.2114(a)(1).

6

However,NRCStaffnowhasdeterminedthat10CFRPart40,AppendixA,Criterion
5(B)(5)groundwaterprotectionstandardsapplyasamatteroflawtoISRwellfields.This
interpretationnowmeansthatISRfacilitiesmustdirectlycomplywithCriterion5(B)(5)
groundwaterprotectionstandards,includingobtainingformalalternateconcentrationlimits
(ACL)fromNRCintheeventthatgroundwaterrestorationdoesnotresultinachievingprimary
orsecondaryrestorationgoals(i.e.,Commissionapprovedbaselineoramaximumcontaminant
level(MCL),whicheverishigher).Thislegalinterpretationfurtherdefinesthedividebetween
NRCandStateregulatedactions.

CATEGORY1:APPLYINGFORANDBECOMINGANAGREEMENTSTATE
Withthehistoricalprefaceanditscontentsinmind,thefirstportionofthisfeasibility
studywillbeentitledApplyingforandBecominganAgreementState(Category1).Initially,this
CategorywillofferadetailedoverviewofNRCsAEAAgreementStateprogramanditslegal
origins.WhileCongresssoughttocreateapervasive,comprehensivestatutoryandregulatory
regimeforAEAmaterialsandoperations,italsoprovidedprovisionsfortheCommissionto
withdrawordiscontinueregulatoryauthorityoversomeofmaterialsandprocessesintheevent
thataStatedesirestoassumesuchAEAauthorityandcandemonstratethatithasaregulatory
programandpersonnelinplacetoprovideprotectionofpublichealthandsafetythatisatleast
asstringentasthatofNRC.Specifically,Section274oftheAEAallowsfortheCommissionto
withdrawordiscontinueitsregulatoryauthorityoverfourclasses(11.e(14))ofbyproduct
material(includingsourcematerialrecovery),sourcematerial,andspecialnuclearmaterials
inquantitiesnotsufficienttoformacriticalmass.TheAEAandCommissionregulationsalso
expresslyreserveregulatoryauthoritytotheCommissionovercertainAEAmaterialsand
operationssuchasregulationofspecialnuclearmaterialinquantitiessufficienttoforma
criticalmass,operationofnuclearpowerreactors,andoceandisposalofsourceorbyproduct
material.Further,withintheclassof11e.(2)byproductmaterialandsourcematerial
recovery,UMTRCAhasreservedtotheCommissionfinalsignoffauthorityovertheclosure
ofsitescontaining11e.(2)byproductmaterial,includingISRsites,andifaconventional/heap
leachfacility,theirfinaltransfertoDOEortheresidentStateforLTSM.Asstatedabove,thisis
anitemthatgreatlyinfluencestheclassesoflicenseesanAgreementStatewillregulate.

Category1analysesalsodiscussthehallmarkofNRCsAgreementStateprogramwhich
isthatallregulationsadoptedbyanAgreementStateforAEAmaterialsandoperationsmust
meetadequacyandcompatibilityrequirements.First,adequacyisarelativelysimpleand
straightforwardconceptinthatallAgreementStateregulationsmustbeadequatetoprotect
publichealthandsafetyifadministrationoftheprogramprovidesreasonableassuranceof
protectionofpublichealthandsafetyinregulatingtheuseofagreementmaterial.SeeExhibit
56.

Second,AgreementStateregulationsmustbecompatiblewithNRCregulationsin
ordertopassreview.Compatibilityasaconceptisslightlymorecomplicatedthan
adequacy,asNRChascompatibilitychartsaddressingeachofitsregulatoryprogramsthat

7

maybeadoptedbyanAgreementStatewithvaryinglevelsofcompatibilityrequirements.As
discussedinSTPProcedureSA200,thecompatibilitycategoriesarediscussedasfollows:

(1) CategoryAisdefinedas[b]asicradiationprotectionstandardorrelated
definitions,signs,labelsortermsnecessaryforacommonunderstandingof
radiationprotectionprinciples.TheStateprogramelementshouldbeessentially
identicaltothatofNRC;

(2) CategoryBisdefinedas[p]rogramelementwithsignificantdirect
transboundaryimplications.TheStateprogramelementshouldbeessentially
identicaltothatofNRC;

(3) CategoryCisdefinedas[p]rogramelement,theessentialobjectivesofwhich
shouldbeadoptedbytheStatetoavoidconflicts,duplicationsorgaps.The
mannerinwhichtheessentialobjectivesareaddressedneednotbethesameas
NRC,providedtheessentialobjectivesaremet;6

(4) CategoryDisdefinedasprogramelementsthatdonotmeetanyofthecriteria
ofCategoryA,B,orCand,thus,donotneedtobeadoptedbyAgreement
Statesforpurposesofcompatibility;

(5) CategoryHealthandSafetyaredefinedasprogramelementsthatarenot
requiredforcompatibilitybuthavebeenidentifiedashavingaparticularhealth
andsafetyrole(i.e.,adequacy)intheregulationofagreementmaterialwithin
theState.

(6) CategoryAreasofExclusiveNRCRegulatoryAuthorityaredefinedasitemsthat
areexpresslyreservedtotheCommissionsuchasregulationofnuclearpower
generationfacilities

Eachofthesecompatibilitycategoriescarriestheirownrequirementsandmustbe
thoroughlyreviewedbeforefinalizationofAgreementStateregulations.Inseveralareas,this
feasibilitystudysuggeststhatacandidateAgreementStateadoptCategoryAandBregulations
asistoavoidanypotentialcompatibilityissuesduringprogramreviews.However,each
AgreementStatemustaddressitsregulationspriortotransitiontoensurethatthereareno
NRCobjectionstosuchregulations.

6
UnitedStatesNuclearRegulatoryCommission,OfficeofStateandTribalPrograms,Compatibility
CategoriesandHealthandSafetyIdentificationforNRCregulationsandOtherProgramElements,STP
ProcedureSA200(October8,2004).Previously,CategoryAcompatibilityregulationsrequiredidentical
languagetothatofNRC.

8

ThisCategoryalsowillexplainandanalyzeallactivitiesfromafinalStatedecisionto
proceedwithanapplicationtoNRCforAgreementStatestatus:(1)commencingtheAgreement
StateprocessbyfilingaletterwiththeNRCChairman;(2)preparingtheapplicationpackagefor
submissiontoNRC;and(3)commencingthetransitionperiodtoactiveAgreementStatestatus
afterNRCapproval.Category1is,byfar,thelargestportionoftheprocessflowapproachthat
encompassesawiderangeofStatedrivenactivitiesincludingpassageoflegislation(i.e.,
RadiationControlAct),rulemakingleadingtopromulgationofNRCcompatibleregulations,
frequentinteractionswithNRCStaffregardingsuchactivitiesandevaluationofNRCguidance
andpolicystatementsforpotentialincorporationintoaStatebasedAgreementState
regulatoryprogram.Further,Category1addressespublicparticipationintheAgreementState
processandthepotentialimpactonanAgreementStateapplicationprogramonotherthan
AEAstatutoryprogramsthatdirectlyaffectNRClicensingprocessesbutthatarenotapplicable
directlytoStates,(i.e.theNationalHistoricalPreservationAct(NHPA)andNational
EnvironmentalPolicyAct(NEPA)).Category1analysesalsowilloffersuggestionsonstrategic
decisionmakingandcostcuttingmeasurestostreamlinetheprocessofbecomingan
AgreementState.Thesemeasuresinclude,butarenotlimitedto,crossreferencingexisting
StatestatutesandregulationswithrelevantAEAprovisionsandNRCregulationsaccordingto
compatibilitycriteria,analysesofNRCguidanceandpoliciesintermsoftheirrelevanceto
operatingasanAgreementState,andsomerecommendationsabouthowtoefficiently
incorporatethemintoanAgreementStateprogram.

IncludedinCategory1isanoverviewdiscussionoffour(4)AgreementStatesandNRCs
uraniumrecoveryprogramandhowtheyoperatetheirprogramssothatWyomingmayobtain
abetterideaofthestaffingandbudgetnecessarytocreateanNRCapprovedAgreementState
programforsourcematerialrecoveryand11e.(2)byproductmaterial.Threeofthe
AgreementStatesevaluatedinthisfeasibilitystudy,theStatesofColorado,Texas,andUtah,all
haveAgreementStateprogramsthatincludesourcematerialrecoveryand11e.(2)byproduct
material.TheremainingAgreementState,theCommonwealthofVirginia,doesnothavethese
materialsandoperationswithinitsSection274Agreement,butisarecentexampleofanon
AgreementStatepursuingAgreementStatestatus.Finally,NRCsuraniumrecoveryprogram,
includingitsdecommissioningbranch,isevaluatedasthevastmajorityofcurrentorsoontobe
licenseesarelocatedorproposedtobelocatedintheStateofWyoming.Thompson&Pugsley,
PLLCisconfidentthatthesecasestudieswillfurtherassistWyominginitsattempttobetter
understandtheresourcesnecessarytorunanAgreementStateprogram.Theprojectionsfor
staffingandresourcesrequiredforaWyomingsourcematerialrecoveryand11e.(2)
byproductmaterialareprojectedtobeasfollows:

Category1analysesprovideprojections,totheextentpracticable,ofpotentialmajor
licensingactions(applications/amendments)involvingcurrentlyidentifiedandpotentialfuture
uraniumrecoverylicenseapplicants/licensees.Thisfeasibilitystudybeginsthisdiscussionwith
anoverviewofhowNRCregulatessourcematerialrecoverylicenseesand,moreimportantly,
howentitiesattempttoapproachthisreactive,independentregulatoryagencyinorderto
engageinAEAsourcematerialrecoveryoperationsandmanage11e.(2)byproductmaterial.
Theselicensingactionsaredividedintoanddiscussedasthree(3)categories:(1)operating

9

licenseapplications;(2)licenseamendmentapplications;and(3)licenserenewals.Eachof
theselicensingactionscarriesdifferentNRCrequirementsfromapublichealthandsafetyand
anenvironmentalprotectionperspective.

ThisdiscussioncontinueswithanoverviewofhowNRCregulatesAEAmaterialsand
operationsthroughafourtieredregulatorystructure.Thefirstcomponentofthisregulatory
structure,regulations,isthebenchmarkforNRCsAEAauthorityoversourcematerial
recoveryand11e.(2)byproductmaterial.Asstatedabove,theprimaryfocusofNRCssource
materialrecoveryprogramissetforthin10CFRPart40anditsAppendixACriteria.However,
thereareseveralothersetsofNRCregulationsthatapplyeitherdirectlyorindirectlytosource
materialrecoveryfacilities,includingthoseat10CFRPart20(radiationprotection),10CFRPart
51(environmentalreviews),10CFRPart71(radioactivematerialstransportation),and10CFR
Parts170171(licensingfees).Eachofthesesetsofregulations,andanyothersdeemed
appropriate,areappliedinconcerttosourcematerialrecoveryfacilitiesandthemanagement
of11e.(2)byproductmaterialtofulfilltheAEAsstatutorymandate.

Thesecondcomponentofthisregulatorystructure,guidance,isafrequentlyemployed
byNRCStaffasaCommissionapprovedinterpretationofitsregulationswheresuchregulations
arenotnecessarilydetailedorprescriptiveenoughtoinformlicenseapplicantsorlicenseesof
whatisrequiredoftheminapplications.ThelevelofavailableNRCguidanceisextensive
rangingfromNUREGseriespublicationssuchasstandardreviewplans(SRP)toRegulatory
Guidesspecificallyfocusedonanaspectofsourcematerialrecovery.Tothemaximumextent
practicable,listsoftheseguidancedocumentsareprovidedinthefeasibilitystudy.

Thethirdcomponentofthisregulatorystructure,policystatementsandother
regulatoryinterpretations,involvesdocumentsthatreflectCommissionpolicyonitsregulation
ofAEAmaterialsandoperationsorNRCStaffinterpretationsofregulations.Thesetypesof
regulatorydocumentscomeinseveralformssuchasPolicyStatements,RegulatoryIssue
Summaries(RIS),andGenericCommunications.Whilenotbinding,AgreementStatesarefree
toadoptsuchregulatorydocumentsinfull,inpartornotatall.

WithinthecontextofCommissionpolicy,thereareseveralaspectsofNRCsregulatory
programthatareworthmentioning.Thefirst,MemorandaofUnderstanding(MOU),area
typicallyusedforagreementsbetweenfederalagencies,federalandStateagencies,and
interagency(withinStates)toachievecertaingoalsforreviewandapprovaloflicensingactions.
SeveralexamplesoftheseMOUsexistinthecontextofAEAlicensingincludingonebetween
NRCandtheBureauofLandManagement(BLM)tofindefficienciesintheenvironmental
reviewcontextandonebetweenNRCandWDEQonsimilarmatters.Thesemechanismsare
usefultoolsthatThompsonandPugsley,PLLCsuggestsWyomingshouldexploreandemploy
whereverpossibletoassistwithresourceallocationandlicensingactionreviewefficiency.

AnotherCommissionpolicyutilizedbyNRCStaffandissuggestedforusebyAgreement
StatesandthosecandidateStatesseekingtobecomeAgreementStatesisperformancebased
licensing.Thefeasibilitystudyprovidesadetaileddiscussionofthedevelopmentofthispolicy

10

bytheCommissionforAEAlicensees,totheextentpracticable,andtheapplicationofcodified
10CFRPart50.59nuclearpowerreactorrequirementsforsuchlicensingtosourcematerial
recoveryfacilities.TheCommissionconcludedthat:

[w]hereappropriate,ariskinformedregulatoryapproachcanalsobeusedtoreduce
unnecessaryconservatismindeterministicapproaches,orcanbeusedtoidentifyareas
withinsufficientconservatismandprovidethebasesforadditionalrequirementsor
regulatoryactions.

SeeUnitedStatesNuclearRegulatoryCommission,SECY98144,WhitePaperonRiskInformed
andPerformanceBasedRegulation(June22,1998).

Thisapproachhasyieldedpositiveresultsinobtainingregulatoryefficienciesintheregulatory
workplaceand,whencoupledwithNRCsapproachofriskinformingitsregulationsofAEA
licensedfacilities,offersasafeandresourceefficientapproachtoregulationofsuchfacilities.
Thismarriageofconceptsyieldedtheuseofsafetyandenvironmentalreviewpanels(SERP),
whicharelicenseecomposedcommittees,withNRCapproval,dedicatedtoensuringthatthe
licenseconditionsreflectingthe10CFRPart50.59requirementsforperformancebased
licensingaresatisfied.SeveralcurrentWyomingbasedNRClicenseescurrentlyutilizesuch
licenseconditionsandtheyhavebeensuccessfulemployingsuchconditions.

NRCsregulatoryapproachalsoincorporatesseveralstatutorymandatesthatarenot
necessarilyrequiredofStateAgreementStateagencies,butdoinfactrequireattentionfrom
candidateAgreementStates.ExamplessuchastheNationalHistoricPreservationActof1966
(NHPA)and10CFRPart51Commissionimplementedregulationsforenvironmentalreviews
undertheNationalEnvironmentalPolicyActof1969areitemsthatWyomingmustaddressif
implementinganAgreementStateprogram.TotheextentthatthecandidateStatehas
regulationsaddressingtheseitems,theyshouldbereviewedandemployedtothemaximum
extentpracticable.However,withrespecttoenvironmentalreviews,thecandidateStatemust
besuretosatisfytheUMTRCAmandatedrequirementthatallAEAenvironmentalreview
requirementsbesimilartothoseprescribedbyNRC.

ThefourthcomponentofNRCsregulatorystructureisinspectionandenforcement.On
itsface,itmakessensethataregulatoryagencywouldhaveinspectionandenforcement
authorityovermaterialsandoperationswithinitsjurisdiction.TheAEANRCprogramisno
different.Forsourcematerialrecoverylicensees,NRCsinspectionandenforcementprogram
iscenteredinitsRegionIVTexasofficefromwhichinspectorsvisitlicensedsitesandinspect
theirperformanceandcompliancewithNRCregulations,relevantguidancewhereapplicable,
andlicenseconditions.NRCsinspectionauthorityprovidesitwiththeabilitytoevaluatesuch
performanceandcompliancemeasuresanddeterminewhetherthelicenseeisindeedfollowing
itsNRCapprovedlicense.Intheeventofaviolationoflicenserequirementsorotherrelevant
regulationsisdetermined,thenNRCwillissueaviolationanddiscussionsbetweenthelicensee
andNRCwillberequired.Dependingontheseverityoftheviolation,NRCwillissueafineor

11

otherformofpenalty,includingimmediatelyenforceableactions,necessarytobringthe
licenseeintocompliance.

Next,inordertoprovideWyomingwithanappropriateoverviewofthenumberof
licenseesitwouldberegulatingwhenandifitbecomesanAgreementState,Category1
providesaprojectedlistofexistingsourcematerialrecoverylicensees,pendingnewoperating
licenseapplicationsandotherlicensingactionsforexistinglicensees,andprojectedfuture
licensingactionapplications.TheselistsaredesignedtoserveasaprecursortoCategory2lists
thatattempttodeterminehowmanyoperatinglicensesWyomingwillberegulatingupon
transition.

Category1analysesalsocontainalistofproductdeliverablesthatarerequiredtoseek
AgreementStatestatusincludingdescriptionsoftheirformandcontent.Further,thelistand
descriptionswillidentifythemostsignificantstrategicdecisionsthatwillneedtobemadeby
theStateifdevelopinganapplicationtoNRC.Someoftheseitemswillfallunderthe
classificationofinterimstudyitemsthataresuggestedforreviewduringayettobeidentified
timeperiodpriortodecidingwhethertopursueAgreementStatestatus.

Finally,Category1analysesprovideanevaluationoftwo(2)potentialalternativesto
pursuingAgreementStatestatusinordertobetteraddressthepurposeoftheEnrolledActand
toalleviatecurrentdualjurisdictionissuesbetweentheStateandNRC.Thesetwoalternatives
areidentifiedas:(1)challengingNRCsaforementionedmillingundergrounddecision;and(2)
revisingtheexistingNRC/WDEQmemorandumofunderstanding(MOU)regardingdeferralof
groundwaterrestorationregulation.Eachalternativewillbedescribedbyissueandprocess
withanassessmentofthepotentialforsuccessinsolvingdualjurisdictionissues.Further,each
alternativediscussionofferscursoryanalysisofthelegalramificationsofpursuingeach
alternative.Thompson&Pugsley,PLLCbelievesthatthisfeasibilitystudywillbemoreusefulif
Statedecisionmakersareprovidedwillacompletesuiteofoptionsthatcanbeevaluatedfrom
costandpotentialforsuccessperspectives.

CATEGORY2:TRANSITIONTOAGREEMENTSTATESTATUS
ThesecondCategoryofactivitiesinthisfeasibilitystudywillbeentitledTransitionto
AgreementStateStatus(Category2).Category2istheleastactivityintensivephaseofthe
AgreementStateprocessasitencompassesonlytheactivitiestakingplacejustbeforefinal
NRCapprovalofaproposedSection274AgreementStateprogramthroughtheactual
executionofanAgreementwithNRC.However,whilethisphaseoftheprocessistheleast
activityintensive,itdoesnotlackforactivitiesthatneedtobeconsideredbytheStateinorder
toenterthemaintenancephaseofAgreementStateStatusefficiently.

DuringthetimeframeassociatedwiththisCategory,Thompson&Pugsley,PLLC
recommendsthattheStateundertakeseveralactivitiespriortoactuallyengaginginthe
transitionprocess,mostofwhichinvolvefutureregulatoryworkloadanalysesandforecasting.
Initially,Category2analyseswilldiscusstheidentificationprocessesusedtodeterminethe

12

timeframesandfrequencyofmajorlicenseapplicationsandthenecessaryfinancial/staffing
resourcestoaddressthem.Suchpotentialmajorlicensingactionsincludeapplicationsfornew
facilityoperatinglicenses,majoramendmentstoexistinglicenses(e.g.,insituleachuranium
recovery(ISR)satellitesandalternateconcentrationlimits(ACLs)),andprojectionoflicensee
oversightactivities(e.g.ISRwellfieldpackageapprovalandfacilitydecommissioning).Tothe
extentthatproposeddatesforthesepotentialmajorlicensingactionsareavailable,theywillbe
incorporatedintothefeasibilitystudy.Totheextentthatreasonableprojectionscanbemade
basedontypicalprogressandlifecycletimeframes,suchprojectionswillbeincorporated.
Thisactivitywillbeconductedduringthemonthsleadinguptothefinalexecutionofany
Section274AgreementwithNRC.Asnotedabove,Category1analyseswillofferacurrentlist
oflicenseapplicants/licenseesandcurrentandfuturepotentialmajorlicensingactions;
Category2willupdatethoseanalysestoassurethatstaffingandfinancialresourceallocations
willbeadequate.GiventhattheNRCAgreementStateprocessisflexibleontiming,theState
canavailitselfofanyadditionaltimenecessarytobringanAgreementStateprograminto
compliancewithnecessaryresourcerequirements.

Category2analyseswillincludeadiscussionofmajordecisionsinthetransitionprocess
forAgreementStateprograms,includingspecificallythedevelopmentofaStatepolicyon
transition.Thispolicywilladdressamultitudeofitemsincluding,butnotlimitedto,adoption
and/ortranslationinwholeorinpartofexistingNRCguidanceandpolicystatements,analysis
ofpotentialimpactsonexistingStatestatutesandregulations,includingStateprimacy
authorityfromtheUnitedStatesEnvironmentalProtectionAgency(EPA)forEPAs
UndergroundInjectionControl(UIC)programunderthefederalSafeDrinkingWaterAct
(SDWA),delegatedEPAauthorityundertheCleanAirAct(CAA),andtransitionofexistingorto
beapprovedNRClicensesorlicensingactionstoAgreementStatelicensesorlicensingactions.
EitherimmediatetransitionorphasedtransitionareoptionsforWyoming,thoughimmediate
transitiondevelopedwithNRCisthetypicalapproach.

ThisCategoryalsowillincludealistofproductdeliverablesforthisphaseofthe
AgreementStateprocessincludingafinallistofpotentialuraniumproducers,adescriptionof
thecurrentlicensingstatusofcurrentorpotentialfutureuraniumproducersintheStateand,
accordingly,potentialbudgeting/staffingandtrainingrequirements.Acomprehensivechartof
NRCguidanceandpolicystatementswillbediscussedwithrespecttotheirform,content,and
significancewithinitialrecommendationsonhowtoaddressadoptionand/ortranslationof
suchguidanceandpolicies.Category2analyseswilldiscussitemsthataretobepreparedafter
initiationoftheAgreementStateprocessandjustpriortofinaltransitiontoAgreementState
status.

CATEGORY3:OPERATIONANDMAINTENANCEOFAGREEMENTSTATESTATUS

ThethirdCategoryofactivitiesinthisfeasibilitystudywillbeentitledOperationand
MaintenanceofAgreementStateStatus(Category3).Category3istobeconsideredan
ongoingphaseoftheAgreementStateprocessandisintendedtoencompassactivitiesfromthe

13

executionofaSection274AgreementwithNRCtotheactivitiesthatarerequiredforcontinued
operationandmaintenanceofanAgreementStateprogram.ThisCategorywillbeformatted
withaseriesofidentifiedmechanismsbywhichtheStatecanmaintainsomeunderstandingof
existingandfuturemarketconditionsthatmayormaynotgiverisetoanupturnordownturnin
uraniumproductionwithanyaccompanyingincreaseordecreaseinlicensing(i.e.,licenseand
licenseamendmentapplications)annualdecommissioningandlicenseterminationactivities,
andopportunitiestomonitorongoinguraniumproductionrelatedactivitiesthrough
public/mediacommunications,manualsormemorandaofunderstanding(MOU)withrelevant
federalagenciessuchastheUnitedStatesBureauofLandManagement(BLM)andtheUnited
StatesForestService(USFS).Usingthreeseparatetimeframesforuraniummarketoverviews,
thestudywillshowhowtheuraniummarket,likeanyotherinternationalcommoditymarket,is
dictatedbyrelatedandunrelatedfactorswhich,takentogether,canhaveaprofoundimpacton
marketpriceandsupplyanddemand.

Category3alsowillprovidethereaderwithanoverviewoftheprocessesassociated
withrelinquishingAgreementStatestatusandthetransferofauthoritybacktoNRC.Inthe
past,StateshaveengagedintheseprocessestorelinquishallorpartoftheirAgreementState
programforavarietyofreasonsincludingalackofstaffing/resourcesanddesiretonot
continuewiththeregulationofcertaintypesofAEAmaterialsand/oroperations.Usingthree
(3)separateexamplesofpriorAgreementStaterelatedprocesses,thisanalysiswilldescribe
howtheprocessofrelinquishingAgreementStateauthorityworksandabriefdescriptionof
somepotentialreasonsforsuchrelinquishment.

CONCLUSION
Thompson&Pugsley,PLLCappreciatestheopportunitytoprepareandpresentthis
feasibilitystudytotheStateandintendstoprepareaseriesofpresentationslidesdiscussing
theanalysesinthisstudyforsubsequentmeetingswithStateofficialstofacilitatethe
developmentofanyadditionalquestionsregardingtheprocessformovingforwardshouldthe
Statechoosetodoso.Thompson&Pugsley,PLLCemphasizesthatthisfeasibilitystudyis
intendedtoprovidethereaderwithacomprehensiveoverviewofthehowtobecomean
AgreementStateprocess,andapproachesthatpotentiallycouldstreamlinetheprocessbutthis
feasibilitystudywillnotprovidetheStatewithanyrecommendationsastowhetheritshould
choosetopursueorchoosenottopursueAgreementStatestatus.IntheeventthattheState
determinesthatpursuingAgreementStatestatusisappropriate,Thompson&Pugsley,PLLCis
preparedtocontinueasadvisorstotheStateinitsendeavorshouldtheStatesochoose.

Perhapsthemostimportantpartofthisfeasibilitystudy,withtheexceptionoftheTable
listedaboveonrequiredFTEandcostsformaintaininganAgreementStateprogram,istheFTE
andcostsassociatedwithYears15oftheAgreementStateprocess.Whilethedetailsofthese
estimatesarediscussedinmoredepthinthefeasibilitystudy,thefollowingchartsprovide
timelinesforthefollowing:(1)GanttChartforInterimStudyActivities;(2)GanttChartfor
AgreementStateProcess;(3)TableforInterimStudyActivities;and(4)TableforYears16of
theAgreementStateProcess:

14

BUDGETANDSTAFFINGPROJECTIONSFORINTERIMSTUDYITEMS

APPROXIMATE/ESTIMATED
PRODUCTDELIVERABLE DESCRIPTION PERSONNEL
COST
1STATE(WDEQ)FTE
1STATEATTORNEY
MONITORSTATEOFGEORGIA EXECUTIVESUMMARY GENERALFTE
IMPEPREVIEW LEVELREPORT 1ADMINISTRATIVE
ASSISTANT
CONSULTANT(S)
1STATE(WDEQ)FTE
1STATEATTORNEY
EXECUTIVESUMMARY GENERALFTE
URANIUMMARKETUPDATE
LEVELREPORT 1ADMINISTRATIVE
ASSISTANT
CONSULTANT(S)
ADDRESSTHE
FOLLOWING:
(1):EXISTINGWDEQ
STAFFANDROLEIN
AGREEMENTSTATE
PROGRAM;
1STATE(WDEQ)FTE
(2):NEWSTAFFFOR
1STATEATTORNEY
PROGRAM;
GENERALFTE
WDEQSTAFFINGPLAN (3):EQUIPMENTAND
1ADMINISTRATIVE
OTHER
ASSISTANT
MATERIAL/SUPPORT
CONSULTANT(S)
NEEDS;
(4):IDENTIFICATIONOF
APPROPRIATESTATE
AGENCYSTRUCTURE
FORAGREEMENTSTATE
PROGRAM

16

ASSESSWHATWDEQ 1STATE(WDEQ)FTE
REGULATIONSCANBE 1STATEATTORNEY
NRC/WDEQREGULATORYCROSS
USEDINAGREEMENT GENERALFTE
REFERENCECHART&
STATEPROGRAMAND 1ADMINISTRATIVE
PRELIMINARYFEESTRUCTURE
ADDITIONAL ASSISTANT
REGULATIONSNEEDED CONSULTANT(S)
1STATE(WDEQ)FTE
INITIALDRAFTOF
1STATEATTORNEY
OUTLINEOFPUBLIC RULEMAKINGAND
GENERALFTE
PARTICIPATION/RULEMAKING OTHERPUBLIC
1ADMINISTRATIVE
PROCEDURES INVOLVEMENT
ASSISTANT
PROCESSES
CONSULTANT(S)
ASSESSVIABILITYOF
1STATE(WDEQ)FTE
NRCGUIDANCE
1STATEATTORNEY
DOCUMENTSFORSTATE
OUTLINEOFGUIDANCEADOPTION GENERALFTE
ADOPTIONAND
POLICY 1ADMINISTRATIVE
POTENTIALUSEOF
ASSISTANT
EXISTINGWDEQ
CONSULTANT(S)
GUIDANCE
DETERMINEWHETHER 1STATE(WDEQ)FTE
MOUsOROTHER 1STATEATTORNEY

INFORMAL GENERALFTE
ASSESSMENTOFMOUAPPROACH
RELATIONSHIPSCAN 1ADMINISTRATIVE
ANDEXISTINGSTATEMOUS
ASSUREADEQUATE ASSISTANT
STAFFEXPERTISE CONSULTANT(S)
STATEFTECOST:$300,000

TOTALCOST
CONSULTANT(S):$215$325PER
HOUR(TIMEANDMATERIALS)

17

AGREEMENTSTATEPROGRAMCOSTBREAKDOWN(YEARS16)7

AGREEMENTSTATEPROCESSYEAR DESCRIPTION8 PERSONNEL APPROXIMATE/ESTIMATEDCOST9

1STATE(WDEQ)FTE
1STATEATTORNEY STATEFTECOST:$300,000
GENERALFTE
ITEMSIDENTIFIEDIN
INTERIMSTUDYYEAR 1ADMINISTRATIVE
TABLE13 CONSULTANT(S):$215$325PERHOUR(TIME
ASSISTANT
CONSULTANT(S)(TIME ANDMATERIALS)
ANDMATERIALSBASIS)
(1):DRAFTANDSEND
GOVERNORSLETTERTO
PROCEED
(2):DRAFTANDENACT
1STATE(WDEQ)FTE
LEGISLATION
1STATEATTORNEY STATEFTECOST:$300,000
AUTHORIZING
GENERALFTE
YEAR1(NOTDATESPECIFICATTHIS GOVERNORSLETTERTO
1ADMINISTRATIVE
TIME) PROCEED CONSULTANT(S):$215$325PERHOUR(TIME
ASSISTANT
(3):BEGINDRAFTING: ANDMATERIALS)
CONSULTANT(S)(TIME
(A)LEGISLATION
ANDMATERIALSBASIS)
AUTHORIZING
AGREEMENTSTATE
PROGRAM;
(B):AGREEMENTSTATE

7
TheyearsidentifiedinthisTablearenottargetedataspecificdateasnodecisionhasbeenmadebytheStatetoproceedwithdevelopmentof
anAgreementStateprogram.Thus,forpurposesofthisTable,itshouldbeassumedthattheprocesswillinvolvethefollowing:(1)uptoone(1)
yearforinterimstudyitems;(2)uptofive(5)yearsforcompletionofCategory1throughtransition;and(3)thefinalyear(Year6)beingthefirst
yearoftheprogramsoperationposttransition.
8
PleasenotethattheDescriptioninsertedinthisTableforeachitemisnotexhaustiveofallrequiredactions.
9
Pleasenotethatcostitemssuchasequipmentpurchases,travelreimbursement,andotherexpensesarenotincludedandwillbefleshedoutin
thestaffingplandescribedinTable13above.

18

PROGRAMREGULATIONS;
(C):COMPLETEDPUBLIC
PARTICIPATIONPOLICY;
(D):COMPLETED
GUIDANCEADOPTION
POLICY;
(E):INITIALMEETINGS
WITHINTERESTED
STAKEHOLDERS
IDENTIFIEDBYNRCSTAFF
(1):COMMENCEMENTOF
PUBLICMEETINGSON 1STATE(WDEQ)FTE
PROGRAM; 1STATEATTORNEY STATEFTECOST:$300,000
(2):COMMENCMENTOF GENERALFTE

YEAR2 RULEMAKINGPROCESS 1ADMINISTRATIVE
FORPROGRAM ASSISTANT
CONSULTANT(S):$215$325PERHOUR(TIME
REGULATIONS; CONSULTANT(S)(TIME ANDMATERIALS)
(3):ONGOINGNRCSTAFF ANDMATERIALSBASIS)
CONSULTATION
(1):REVIEWOFAND
PROCESSINGPUBLICAND
2STATE(WDEQ)FTE:
NRCSTAFFCOMMENTS
(DEQPROGRAM
ONPROGRAM
DIRECTOR&HEALTH STATEFTECOST:$430,000
REGULATIONS;
PHYSICSSTAFFER)
(2):ONGOINGNRCSTAFF
1STATEATTORNEY
CONSULTATIONS; CONSULTANT(S):$215$325PERHOUR(TIME
YEAR3 GENERALFTE
(3):UPDATETOWDEQ ANDMATERIALS)
1ADMINISTRATIVE
STAFFINGPLAN;
ASSISTANT
(4):DEVELOPTRANSITION
CONSULTANT(S)(TIME
POLICY;
ANDMATERIALSBASIS)
(5):TRAININGOFHEALTH
PHYSICSSTAFF

19

(1):FINALIZATIONOF
RESPONSETOPUBLICAND
NRCSTAFFCOMMENTS
ONDRAFTPROGRAM
4STATE(WDEQ)FTE
REGULATIONS;
1STATEATTORNEY STATEFTECOST:$690,000
(2):ONGOINGNRCSTAFF
GENERALFTE
CONSULTATION;
YEAR4 1ADMINISTRATIVE
(3):FINALIZESTAFFING CONSULTANT(S):$215$325PERHOUR(TIME
ASSISTANT
PLANANDPREPAREFOR ANDMATERIALS)
CONSULTANT(S)(TIME
EQUIPMENTPURCHASES
ANDMATERIALSBASIS)
(RFP);
(4):HIRINGANDTRAINING
OFADDITIONAL
PERSONNEL
(1):FULLACTIVE
8STATE(WDEQ)FTE
PERSONNELAND
1STATEATTORNEY STATEFTECOST:$1,230,000
COMMENCEMENT
GENERALFTE
AND/ORCOMPLETIONOF
YEAR5 1ADMINISTRATIVE
AGREEMENTSTATE CONSULTANT(S):$215$325PERHOUR(TIME
ASSISTANT
PROGRAMTRAINING ANDMATERIALS)
CONSULTANT(S)(TIME
(2):COMPLETIONOF
ANDMATERIALSBASIS)
EQUIPMENTPURCHASES
FULLPROGRAM
OPERATION 8STATE(WDEQ)FTE
1STATEATTORNEY STATEFTECOST:$1,230,000
YEAR6(EFFECTIVEUPON 11LICENSEESACTIVEOR GENERALFTE
TRANSITION) STANDBY 1ADMINISTRATIVE CONTRACTORCOSTSATSTATEDISCRETION
1LICENSEEAWAITINGSITE ASSISTANTS
CLOSUREANDLICENSE
TERMINATION

20

AgreementStateInterimStudyItems

MONITORSTATEOFGEORGIA
IMPEPREVIEW

URANIUMMARKETUPDATE

WDEQSTAFFINGPLAN

NRC/WDEQREGULATORYCROSSREFERENCE
CHART&PRELIMINARYFEESTRUCTURE

OUTLINEOFPUBLICPARTICIPATION/
RULEMAKINGPROCEDURES

OUTLINEOFGUIDANCE
ADOPTIONPOLICY

ASSESSMENTOFMOUAPPROACH
ANDEXISTINGSTATEMOUS

Q1 Q2 Q3 Q4
2014

AgreementStateProcess

Develop&PassageofEmpoweringStatute&SubmissionofGovernor'sCertificationLetter

DevelopmentofSourceMaterialsRecoveryRegulations

DevelopmentofPublicParticipationPolicy

DevelopmentofPolicyAdoptionGuidance

DevelopmentofTransitionPolicy

CommencementofPublicMeetingsonDraftRegulations&Policies

SubmissionofWrittenCommentsonDraftRegulations&Policies

Review&ResponsetoWrittenCommentsonDraftRegulations&Policies

OngoingMeetingswithNRCStaff

SubmissionofFinalDraftRegulationstoNRCStaffforReview&Comment

ReceiptofCommentsfromNRCStaff

RevisionsofDraftRegulations

HiringandTrainingofRelevantWDEQTechnicalExperts

IssuanceofFinalDraftWDEQAgreementStateRegulations

ReceiptofPublicCommentonFinalDraftWDEQAgreementStateRegulations

ResponsetoPublicCommentsonFinalDraftWDEQAgreementStateRegulations

FinalizationofAgreementStateRegulations

Governor's&NRCChairman'sExecution'sExecutionofSection274Agrement
Q1 Q2 Q3 Q4 Q1 Q2Q3Q4 Q1 Q2Q3Q4 Q1 Q2Q3Q4 Q1 Q2Q3Q4 Q1Q2
Year1 Year2 Year3 Year4 Year5 Year 6
TABLEOFCONTENTS
PREAMBLE....2
FEASIBILITYSTUDYSCOPE..2
FEASIBILITYSTUDYFORMAT.3
CATEGORY1:APPLYINGFORANDBECOMINGANAGREEMENTSTATE.3
CATEGORY2:TRANSITIONTOAGREEMENTSTATESTATUS..4
CATEGORY3:OPERATIONANDMAINTENANCEOFAGREEMENTSTATESTATUS..5
CONCLUSIONS.6
HISTORICALPREFACE.7
A. OVERVIEWOFSOURCEMATERIALANDSOURCEMATERIALRECOVERY(SOURCE
MATERIALMILLING).7
1.SOURCEMATERIALRECOVERYAND11E.(2)BYPRODUCTMATERIALHISTORY..7
2.THECREATIONOFASOURCEMATERIALRECOVERYAND11E.(2)BYPRODUCT
MATERIALMANAGEMENTPROGRAM.10
i.URANIUMMILLTAILINGSRADIATIONCONTROLACTOF1978STATUTORY
PROGRAMANDMANDATE..10
ii.10CFRPART40,APPENDIXACRITERIAFORSOURCEMATERIALRECOVERY.20
iii.OTHERSOURCEMATERIALRECOVERYREGULATORYPROGRAMS28
a.EPA'SSAFEDRINKINGWATERACTREGULATIONS..28
b.EPA'SCLEANAIRACTREGULATIONSFORRADONEMISSIONSFROM
SOURCEMATERIALMILLTAILINGSIMPOUNDMENTS31
B.ORIGINSOFDUALJURISDICTIONISSUES..33
1.RECENTDUALJURISDICTIONISSUES.39
i."ASAPPLIED"APPENDIXACRITRERIATOISRFACILITIES.39

ii."MILLINGUNDERGROUND"DECISION..40

I. CATEGORY1:APPLYINGFORANDBECOMINGANAGREEMENTSTATE..43

A.UNITEDSTATESNUCLEARREGULATORYCOMMISSIONAGREEMENTSTATE
PROGRAM.43
1.NRCAGREEMENTSTATEPROGRAMBACKGROUND43

i

2.AGREEMENTSTATEPROGRAMREQUIREMENTS:ADEQUACYAND
COMPATIBILITY45
iNRCCOMPATIBILITYACATEGORY.46
ii.NRCCOMPATIBILITYBCATEGORY...47
iii.NRCCOMPATIBILITYCCATEGORY...48
iv.NRCCOMPATIBILITYDCATEGORY.....48
v.NRCCOMPATIBILITYH&SCATEGORY....49
vi.NRCCOMPATIBILITYEXCLUSIVECATEGORY....49
3. NRCAGREEMENTSTATEPROCESSANDPROCEDURES49
i.PROCESSSTEP1:GOVERNORSCERTIFICATIONLETTER&STATEDRAFT
REQUEST.51
ii.PROCESSSTEP2:FORMALSTATEREQUEST&DOCUMENTPACKAGE....52
iii.PROCESSSTEP3:COMMISSIONAPPROVAL.52
B. AGREEMENTSTATESTUDIES.54
1.COMMONWEALTHOFVIRGINIA54
2.STATEOFCOLORADO.55
3.STATEOFTEXAS..56
C. SUGGESTEDAPPROACHFORDEVELOPMENTOFAGREEMENTSTATEPROGRAM.59
1.DRAFTANEMPOWERINGSTATUTEFORGOVERNORSAUTHORIZATIONTO
PROCEED.59
2.COMMENCECONSULTATIONSWITHINTERESTEDPARTIES.59
3.DRAFTANEMPOWERINGSTATUTEFORAGREEMENTSTATEPROGRAM.60
4.DRAFTAGREEMENTSTATEPROGRAMREGULATIONS62
5.DRAFTPOLICYONGUIDANCEADOPTION62
6.DRAFTPUBLICPARTICIPATIONPROCESSFORREGULATIONRULEMAKING..63
7. IDENTIFYEXISTINGMEMORANDAOFUNDERSTANDINGANDDETERMINE
8.WHICHNEEDUPDATING/REVISIONSANDIFNEWMEMORANDAOF
UNDERSTANDINGAREREQUIRED....63
9.DEVELOPAFEEPROGRAMANDRULEMAKINGPROCESS...63
D. NRC&WDEQREGULATORYPROCESSES:OVERVIEW..64

ii

1.AEA/NRCLICENSINGACTIONSFORSOURCEMATERIALRECOVERY.64
i.OPERATINGLICENSEAPPLICATIONS..65
ii.LICENSEAMENDMENTAPPLICATIONS.65
iii.LICENSERENEWALS..68
2.NRCREGULATORYFORMATOVERVIEW:REGULATIONS...71
i.FEDERALREGULATIONS...................71
a.NRCREGULATIONS:10CFRPART40REGULATIONS.72
b.NRCREGULATIONS:APPENDIXACRITERIA..72
c.NRCREGULATIONS:10CFRPART20RADIATIONPROTECTION
REGULATIONS..73
d.NRCREGULATIONS:10CFRPART71TRANSPORTATIONREGULATION.74
e.NRCREGULATIONS:10CFRPART170&171FEEREGULATIONS..74
3. NRCGUIDANCE,POLICYSTATEMENTS,ANDOTHERREGULATORY
INTERPRETATIONS76
i.NRCGUIDANCE76
ii.NRCPOLICYSTATEMENTSANDOTHERREGULATORYINTERPRETATIONS80
iii.MEMORANDAOFUNDERSTANDING..82
iv.PERFORMANCEBASEDLICENSING..83
v.SAFETYANDENVIRONMENTALREVIEWPANEL.85
vi.NRCVERSUSSTATEREQUIREMENTS..86
4. NRCINSPECTIONANDENFORCEMENT..89
i. NRCINSPECTIONAUTHORITYANDPROCESS89
ii. NRCENFORCEMENTPOLICYANDPROCESS90
E.LICENSEAPPLICANTANDLICENSEEOVERVIEWSANDREQUESTS....91
1.CURRENTLICENSEES93
2.PENDINGNRCLICENSEAPPLICATIONS..94
3.PROJECTEDNRCLICENSEAPPLICATIONS.95
F.PRODUCTDELIVERABLES96
G.EVALUATIONOFPOTENTIALALTERNATIVESTOAGREEMENTSTATESTATUS.98
1.THEMILLINGUNDERGROUNDDECISION98
2.REVISIONTOCURRENTNRC/WDEQMEMORANDUMOFUNDERSTANDING..101

iii

II.CATEGORY2:TRANSITIONTOAGREEMENTSTATESTATUS..103
A. IDENTIFICATIONOFCURRENT,PENDING,ANDFUTURELICENSINGACTIONS103
1.ALTERNATECONCENTRATIONLIMITS....104
2. NON11(E).2BYPRODUCTMATERIALDIRECTDISPOSAL.105

3. ALTERNATEFEEDPROCESSING.110
4. WELLFIELDPACKAGES.117
5. SITEDECOMMISSIONINGANDDECONTAMINATIONPLANS119
6. FACILITYRESTARTS120
7. SITECLOSUREANDLICENSETERMINATION.120
B. TRANSITIONPROCESS...124
1. THETRANSITIONPROCESS:WHICHAPPROACHMAKESSENSE?...........................124
2. TRANSITIONOPTIONSANDEVALUATION..127
i.IMMEDIATETRANSITION.127
ii.PHASEDTRANSITION..127
C. SUGGESTEDAPPROACHFORCATEGORY2.128
1. DEVELOPAPROPOSEDTRANSITIONPOLICYFOREXISTINGLICENSESAND
PENDINGLICENSINGACTIONS.128
2. DEVELOPNEWLEGISLATIONAND/ORREGULATIONSFORINCONSISTENCIESOR
CONTRADICTORYREQUIREMENTS128
3.UPDATELICENSEEANDLICENSEAPPLICANTLISTSFROMCATEGORY1.128
4.FINALIZEGUIDANCEPOLICYANDFEESTRUCTUREAPPROACH...128
III.CATEGORY3:MAINTENANCEANDOPERATIONOFAGREEMENTSTATESTATUS.131
A. ASSESSMENTOFPROCESSTORELINQUISHALLORPARTOFAGREEMENTSTATE
STATUS..131
1.PROCESSOFRELINQUISHINGPARTIALORCOMPLETEAGREEMENTSTATE
AUTHORITY..131
2.REPRESENTATIVEAGREEMENTSTATECASESTUDIES.133

i.STATEOFIDAHO...133
ii.STATEOFNEWMEXICO....133
iii.STATEOFGEORGIA...135

iv

B.MAINTENANCEANDOPERATIONOFAGREEMENTSTATESTATUS....135
1.URANIUMMARKETOVERVIEW...135
2.MARKETCONDITIONS.136
i. MARKETCONDITIONS(PRE2005)...136
ii. MARKETCONDITIONS(20052013).137
III.MARKETPROJECTIONS(20132023)138
3.INTERNATIONALEXAMPLESOFFUTUREPRODUCTION&DELAYS..139
C. SUGGESTEDAPPROACHFORCATEGORY3...140
1.MONITORTHE2014IMPEPREVIEWOFTHESTATEOFGEORGIA....140
2.REASSESSURANIUMMARKETCONDITIONSIN2014...141

v

TABLES&CHARTS

TABLE1: AGREEMENTSTATEPROGRAMSTATISTICS

TABLE2: LICENSEAMENDMENTREQUESTSBYTYPEANDLEVEL

TABLE3: PROJECTEDLICENSERENEWALS

TABLE4: NRCGUIDANCEDOCUMENTS

TABLE5: NRCPOLICYSTATEMENTSANDREGULATORYINTERPRETATIONS

TABLE6: CURRENTLICENSEES

TABLE7: PENDINGLICENSEAPPLICATIONS

TABLE8: FUTURELICENSEAPPLICATIONS(THOSEWHOHAVESUBMITTED
LETTERSOFINTENTTONRCSTAFF

TABLE9: CATEGORY1PRODUCTDELIVERABLECHART

TABLE10: EFFECTIVELICENSESUPONTRANSITION(PROJECTEDOVER5YEAR
PERIOD(2020)

TABLE11: NRCREVIEWPROCESSINPHASES(PROJECTED)

TABLE12: PRODUCTDELIVERABLECHARTFORCATEGORY2

TABLE13: BUDGETANDSTAFFINGPROJECTIONSFORINTERIMSTUDYITEMS

TABLE14: AGREEMENTSTATEPROGRAMCOSTBREAKDOWN(YEARS16)

vi

LISTOFACRONYMS

ACL AlternateConcentrationLimit
ADR AlternativeDisputeResolution
AEA AtomicEnergyActof1954
AEC AtomicEnergyCommission
ALARA AsLowAsReasonablyAchievable
AMC AmericanMiningCongress
ANC AmericanNuclearCorporation
ANPR AdvancedNoticeofProposedRulemaking
BLM UnitedStatesBureauofLandManagement
BTP BranchTechnicalPosition
CAA CleanAirAct
CEQ CouncilonEnvironmentalQuality
CERCLA ComprehensiveEnvironmentalResponse,Compensation,and
LiabilityAct
CPP CentralProcessingPlant
CRCPD CouncilofRadiationControlProgramDirectors
CRR CompletionReviewReport
D&D Decommissioning&Decontamination
DOE UnitedStatesDepartmentofEnergy
DGEIS DraftGenericEnvironmentalImpactStatement
EA EnvironmentalAssessment
EDF EnvironmentalDefenseFund
EDO NRCExecutiveDirectorofOperations
EIA EnergyInformationAdministration
EIS EnvironmentalImpactStatement
EPA UnitedStatesEnvironmentalProtectionAgency
FCFF FuelCycleFacilitiesForum
FSME OfficeofFederalandStateMaterialsandEnvironmental
Management
GAO GeneralAccountabilityOffice
GEIS GenericEnvironmentalImpactStatementonUraniumMilling
GWCAP GroundwaterCorrectiveActionProgram
HRI HydroResources,Inc.
IMPEP IntegratedMaterialsPerformanceEvaluationProgram

vii

ISR InSituLeachUraniumRecovery
ISRGEIS NUREG1910
IUSA InternationalUranium(USA)Corporation
IX IonExchange
LEU LowEnrichedUranium
LTSM LongTermSurveillance&Monitoring
LOI LetterofIntent
MCL MaximumContaminantLimit
MOU MemorandaofUnderstanding
MRB ManagementReviewBoard
NAS NationalAcademiesofScience
NEPA NationalEnvironmentalPolicyAct
NHPA NationalHistoricalPreservationAct
NMA NationalMiningAssociation
NRC UnitedStatesNuclearRegulatoryCommission
NRDC NaturalResourcesDefenseCouncil
OAS OrganizationofAgreementStates
OBRA OmnibusBudgetReconciliationActof1990
OCFO NRCsOfficeoftheChiefFinancialOfficer
OELD OfficeoftheExecutiveLegalDirector
OGC OfficeofGeneralCounsel
PBLC PerformanceBasedLicenseCondition
POC PointofCompliance
POE PointofExposure
POO PlanofOperations(BLM)
PRP PotentiallyResponsibleParty
RAP RestorationActPlan
RCRA ResourceConservationandRecoveryAct
RER RareElementResources
RIS RegulatoryIssueSummary
SA StateAgreements
SARI StrategicAssessmentReBaseliningInitiative
SDWA SafeDrinkingWaterAct
SEIS SupplementalEnvironmentalImpactStatement
SERP SafetyandEnvironmentalReviewPanel
SRM StateRequirementsMemorandum
SRP StandardReviewPlans

viii

STP StateandTribalPrograms
TDS TotalDissolvedSolids
TSCA ToxicSubstancesControlAct
UEC UraniumEnergyCorp.
UIC UndergroundInjectionControl
UMTRCA UraniumMillTailingsRadiationControlActof1978
URFO UraniumRecoveryFieldOffice
URI UraniumResources,Inc.
USDW UndergroundSourceofDrinkingWater
USFS UnitedStatesForestService
WDEQ WyomingDepartmentofEnvironmentalQuality
WNI WesternNuclear,Inc.

ix

FEASIBILITYSTUDYFORBECOMINGANAGREEMENTSTATE
UNDERTHEATOMICENERGYACTOF1954FORTHE
REGULATIONOFSOURCEMATERIALRECOVERYAND11E.(2)
BYPRODUCTMATERIAL



PreparedfortheStateofWyomingPursuanttoEnrolledAct
No.100
PreparedbyThompson&Pugsley,PLLC
AnthonyJ.Thompson,Esq.
ChristopherS.Pugsley,Esq.


STATEOFWYOMINGAGREEMENTSTATEFEASIBILITYSTUDY
PREAMBLE

PursuanttoaservicescontractexecutedbyandbetweenThompson&Pugsley,PLLC
andtheStateofWyominginAprilof2013,Thompson&Pugsley,PLLCispleasedtosubmitthis
feasibilitystudyinaccordancewiththeStateofWyomings(hereinaftertheState)Houseof
RepresentativesEnrolledActNo.100(EnrolledAct)passedintheSixtySecondLegislatureof
theStateofWyoming,2013GeneralSession.Priortoengaginginactivestudyofthe
methodologyassociatedwithbecominganAgreementStateandtheresponsibilitiesassociated
withsuchanAgreement,thisPreamblewillsetforththescopeofthisfeasibilitystudypursuant
totheEnrolledActandthemannerinwhichthestudysanalysiswillbeconducted.Thompson
&Pugsley,PLLCbelievesthatthestudyformatdescribedbelowwillprovidethereaderwitha
clearviewoftheprocesstobecomeanAgreementState,thestrategicdecisionsinvolvedin
thatprocess,andanunderstandingoftheregulatoryissuesandresponsibilitiesassociatedwith
themaintenanceofanAgreementStateprogramafterreceivingapprovalfromtheUnited
StatesNuclearRegulatoryCommission(NRC).

FEASIBILITYSTUDYSCOPE

TheStatesEnrolledActsetsforththeparametersforconductingthisfeasibilitystudy
withrespecttothetypesofAtomicEnergyActof1954,(AEA)asamendedbytheUraniumMill
TailingsRadiationControlActof1978(UMTRCA),materialsandoperationsforwhichtheState
potentiallycanseekAgreementStatestatusunderSection274oftheAEA.Section1ofthe
EnrolledActspecificallystatesthatthefeasibilitystudyisintendedtocoverthelicensingof
sourcematerialandsourcematerialrecovery.1TheEnrolledActslanguageimpliesthatthe
intendedscopeofthefeasibilitystudyisfocusedonrecoveryofsourcematerial(eithernatural
uraniumand/orthoriuminanyform)2andthewastesassociatedwithrecoveryofsuchsource
materialfromoresprocessedprimarilyfortheirsourcematerialcontent(i.e.;11e.(2)byproduct
materialpursuanttoUMTRCA).Whilesourceand11e.(2)byproductmaterialareaddressedin
AEASections11(z)and11(e)respectivelytheprocessbywhichsourcematerialisrecoveredat
AEAlicenseduraniumrecoveryfacilitiesandthe11e.(2)byproductmaterialgeneratedasa
resultofsuchuraniumrecoveryoperationsarepartofaclassofAEAlicensedoperationsthat
willbecalledsourcematerialrecovery/millinginthisfeasibilitystudy.TheseAEAoperations
areexpresslyrecognizedtoencompassboththegenerationofthetwoaforementionedAEA
materialsatNRClicensedsourcematerialrecoverymillsaswellassuchmaterialsgeneratedin
Section274AgreementStatesthathaveacceptedauthoritytherefore.3Thus,itisThompson
andPugsley,PLLCsconclusionthattheintendedscopeofthisfeasibilitystudyistoaddressonly

1
EnrolledActatSection1(hereinafterExhibit1).
2
Asapracticalmatter,althoughthetermsourcematerialincludesbothuraniumandthorium,this
feasibilitystudywillbeaddressingsourcematerialrecoveryasdefinedtherein.
3
SeveralexamplesoffinalSection274Agreementsareincludedforreferencepurposes(hereinafter
Exhibit2).

sourcematerialmillinganditsrelatedAEAmaterials(i.e.;sourcematerialand11e.(2)
byproductmaterial).

FEASIBILITYSTUDYFORMAT

Withthatsaid,thefeasibilitystudywilladdressdirectlyallparametersindicatedin
Section1oftheEnrolledAct,andanyotherparametersthatwillprovideinsightinto
understandingtheprocesstobecomeanAgreementStateandtooperateandmaintainan
approvedAgreementStateprogram.Thesestudyparameterswillbeincorporatedathree
tiered,processflowapproachthataddressesthreedistinctphasesoftheprocess.

DESCRIPTIONOFFEASIBILITYSTUDYANALYTICALCATEGORIES

Thefollowingdiscussionwilloutlinethethreetiered,processflowapproach
recommendedbyThompson&Pugsley,PLLCfortheStatetofollowifitdecidestopursueNRC
AgreementStatestatus.Thethreecategoriesthatwillbeutilizedinthisfeasibilitystudyare:
(1)ApplyingforandBecominganAgreementState;(2)TransitiontoAgreementStateStatus;
and(3)OperationandMaintenanceofAgreementStateStatus.Thompson&Pugsley,PLLC
believesthatthisapproachwillbebeneficialonanumberoffrontsincludinghistoricaland
factualinformation,budgetaryanalysis,andstaffing.

CATEGORY1:APPLYINGFORANDBECOMINGANAGREEMENTSTATE

ThefirstCategoryofactivitieswillbeentitledApplyingforandBecominganAgreement
State(Category1).ThisCategorywillexplainandanalyzeallactivitiesfromafinalState
decisiontoproceedwithanapplicationtoNRCforAgreementStatestatus:(1)commencingthe
AgreementStateprocessbyfilingaletterwiththeNRCChairman;(2)preparingtheapplication
packageforsubmissiontoNRC;and(3)commencingthetransitionperiodtoactiveAgreement
StatestatusafterNRCapproval.Category1is,byfar,thelargestportionoftheprocessflow
approachthatencompassesawiderangeofStatedrivenactivitiesincludingpassageof
legislation(i.e.,RadiationControlAct),rulemakingleadingtopromulgationofNRCcompatible
regulations,frequentinteractionswithNRCStaffregardingsuchactivitiesandevaluationof
NRCguidanceandpolicystatementsforpotentialincorporationintoaStatebasedAgreement
Stateregulatoryprogram.Further,Category1addressespublicparticipationintheAgreement
StateprocessandthepotentialimpactonanAgreementStateapplicationprogramofother
thanAEAstatutoryprogramsthatdirectlyaffectNRClicensingprocessesbutthatarenot
applicabledirectlytoStates,(i.e.theNationalHistoricalPreservationAct(NHPA)andNational
EnvironmentalPolicyAct(NEPA)).Category1analysesalsowilloffersuggestionsonstrategic
decisionmakingandcostcuttingmeasurestostreamlinetheprocessofbecomingan
AgreementState.Thesemeasuresinclude,butarenotlimitedto,crossreferencingexisting
StatestatutesandregulationswithrelevantAEAprovisionsandNRCregulationsaccordingto
compatibilitycriteriaanalysesofNRCguidanceandpoliciesintermsoftheirrelevanceto
operatingasanAgreementStateandsomerecommendationsabouthowtoefficiently
incorporatethemintoanAgreementStateprogram.

Category1analysesalsowillprovideprojections,totheextentpracticable,ofpotential
majorlicensingactions(applications/amendments)involvingcurrentlyidentifiedandpotential
futureuraniumrecoverylicenseapplicants/licensees.Suchpotentialmajorlicensingactions
includeapplicationsfornewfacilityoperatinglicenses,majoramendmentstoexistinglicenses
(e.g.,insituleachuraniumrecovery(ISR)satellitesandalternateconcentrationlimits(ACLs)),
andprojectionoflicenseeoversightactivities(e.g.ISRwellfieldpackageapprovalandfacility
decommissioning).Totheextentthatproposeddatesforthesepotentialmajorlicensing
actionsareavailable,theywillbeincorporatedintothefeasibilitystudy.Totheextentthat
reasonableprojectionscanbemadebasedontypicalprogressandlifecycletimeframes,such
projectionswillbeincorporated.

Category1analysesalsowillprovideanevaluationofpotentialalternativestopursuing
AgreementStatestatusinordertoalleviatecurrentdualjurisdictionissuesbetweentheState
andNRC.Eachalternativewillbedescribedbyissueandprocesswithanassessmentofthe
potentialforsuccessinsolvingdualjurisdictionissues.Thompson&Pugsley,PLLCbelievesthat
thisfeasibilitystudywillbemoreusefulifStatedecisionmakersareprovidedwillacomplete
suiteofoptionsthatcanbeevaluatedfromcostandpotentialforsuccessperspectives.

Finally,Category1analyseswillconcludewithalistofproductdeliverablesthatare
requiredtoseekAgreementStatestatusincludingdescriptionsoftheirformandcontent.
Further,thelistanddescriptionswillidentifythemostsignificantstrategicdecisionsthatwill
needtobemadebytheStateifdevelopinganapplicationtoNRC.

CATEGORY2:TRANSITIONTOAGREEMENTSTATESTATUS

ThesecondCategoryofactivitiesinthisfeasibilitystudywillbeentitledTransitionto
AgreementStateStatus(Category2).Category2istheleastactivityintensivephaseofthe
AgreementStateprocessasitencompassesonlytheactivitiestakingplacejustbeforefinal
NRCapprovalofaproposedSection274AgreementStateprogramthroughtheactual
executionofanAgreementwithNRC.However,whilethisphaseoftheprocessistheleast
activityintensive,itdoesnotlackforactivitiesthatneedtobeconsideredbytheStateinorder
toenterthemaintenancephaseofAgreementStateStatusefficiently.

DuringthetimeframeassociatedwiththisCategory,Thompson&Pugsley,PLLC
recommendsthattheStateundertakeseveralactivitiespriortoactuallyengaginginthe
transitionprocess,mostofwhichinvolvefutureregulatoryworkloadanalysesandforecasting.
Initially,Category2analyseswilldiscusstheidentificationprocessesusedtodeterminethe
timeframesandfrequencyofmajorlicenseapplicationsandthenecessaryfinancial/staffing
resourcestoaddressthem.Thisactivitywillbeconductedduringthemonthsleadinguptothe
finalexecutionofanySection274AgreementwithNRC.Asnotedabove,Category1analyses
willofferacurrentlistoflicenseapplicants/licenseesandcurrentandfuturepotentialmajor
licensingactions;Category2willupdatethoseanalysestoassurethatstaffingandfinancial
resourceallocationswillbeadequate.GiventhattheNRCAgreementStateprocessisflexible

ontiming,theStatecanavailitselfofanyadditionaltimenecessarytobringanAgreement
Stateprogramintocompliancewithnecessaryresourcerequirements.

Category2analyseswilldiscusstheestablishmentofafeeprogramforfundingthe
operationandcontinuedmaintenanceofanAgreementStateprogramduringthethirdphase
oftheprocess.Theseanalyseswilldiscussthedifferencesbetweeninitialfundingofthe
AgreementStateprogrampriortotransitionandtheoperationandstructureofafeeprogram
tocontinueoperationandmaintenanceofsaidprogram.Aswillbedescribedinthisfeasibility
study,NRCoperatesafeeprogramthatallowstheagencytocomplywithitsstatutory
responsibilitiesundertheOmnibusBudgetReconciliationActof1990(OBRA).4Thisprogram
offersinsightsintothedevelopmentofanadequatefeeprogram,alongwithfeeprograms
currentlyusedbyexistingAgreementStates.5

Category2analyseswillincludeadiscussionofmajordecisionsinthetransitionprocess
forAgreementStateprograms,includingspecificallythedevelopmentofaStatepolicyon
transition.Thispolicywilladdressamultitudeofitemsincluding,butnotlimitedto,adoption
and/ortranslationinwholeorinpartexistingNRCguidanceandpolicystatements,analysisof
potentialimpactsonexistingStatestatutesandregulations,includingStateprimacyauthority
fromtheUnitedStatesEnvironmentalProtectionAgency(EPA)forEPAsUndergroundInjection
Control(UIC)programunderthefederalSafeDrinkingWaterAct(SDWA),delegatedEPA
authorityundertheCleanAirAct(CAA),andtransitionofexistingortobeapprovedNRC
licensesorlicensingactionstoAgreementStatelicensesorlicensingactions.

ThisCategoryalsowillincludealistofproductdeliverablesforthisphaseofthe
AgreementStateprocessincludingafinallistofpotentialuraniumproducers,adescriptionof
thecurrentlicensingstatusofcurrentorpotentialfutureuraniumproducersintheStateand,
accordingly,budgeting/staffingandtrainingrequirements.AcomprehensivechartofNRC
guidanceandpolicystatementswillbediscussedwithrespecttotheirform,content,and
significancewithinitialrecommendationsonhowtoaddressadoptionand/ortranslationof
suchguidanceandpolicies.Category2analyseswilldiscussitemsthataretobepreparedafter
initiationoftheAgreementStateprocessandjustpriortofinaltransitiontoAgreementState
status.

CATEGORY3:OPERATIONANDMAINTENANCEOFAGREEMENTSTATESTATUS

ThethirdCategoryofactivitiesinthisfeasibilitystudywillbeentitledOperationand
MaintenanceofAgreementStateStatus(Category3).Category3istobeconsideredan
ongoingphaseoftheAgreementStateprocessandisintendedtoencompassactivitiesfromthe
executionofaSection274AgreementwithNRCtotheactivitiesthatarerequiredforcontinued

4
See65Fed.Reg.16250(March27,2000)(hereinafterExhibit3).
5
Seee.g.,StateofColorado,DepartmentofPublicHealthandEnvironment(HazardousMaterialsand
WasteManagementDivision),6CCR10071(hereinafterExhibit4).

operationandmaintenanceofanAgreementStateprogram.ThisCategorywillbeformatted
withaseriesofidentifiedmechanismsbywhichtheStatecanmaintainsomeunderstandingof
existingandfuturemarketconditionsthatmayormaynotgiverisetoanupturnordownturnin
uraniumproductionwithanyaccompanyingincreaseordecreaseinlicensing(i.e.,licenseand
licenseamendmentapplications)annualdecommissioningandlicenseterminationactivities,
andopportunitiestomonitorongoinguraniumproductionrelatedactivitiesthrough
communication,manualsormemorandaofunderstanding(MOU)withrelevantfederal
agenciessuchastheUnitedStatesBureauofLandManagement(BLM)andtheUnitedStates
ForestService(USFS).

Category3alsowillprovidethereaderwithanoverviewoftheprocessesassociated
withrelinquishingAgreementStatestatusandthetransferofauthoritybacktoNRC.Inthe
past,StateshaveengagedintheseprocessestorelinquishallorpartoftheirAgreementState
programforavarietyofreasonsincludingalackofstaffing/resourcesanddesiretonot
continuewiththeregulationofcertaintypesofAEAmaterialsand/oroperations.Thisanalysis
willdescribehowtheprocessofrelinquishingAgreementStateauthorityworksandabrief
descriptionofsomepotentialreasonsforsuchrelinquishment.

CONCLUSION

Thompson&Pugsley,PLLCappreciatestheopportunitytoprepareandpresentthis
feasibilitystudytotheStateandintendstoprepareaseriesofpresentationslidesdiscussing
theanalysesinthisstudyinsubsequentmeetingswithStateofficialstofacilitatethe
developmentofanyadditionalquestionsregardingtheprocessformovingforwardshouldthe
Statechoosetodoso.Thompson&Pugsley,PLLCemphasizesthatthisfeasibilitystudyis
intendedtoprovidethereaderwithacomprehensiveoverviewoftheAgreementStateprocess
andapproachesthatpotentiallycouldstreamlinetheprocessbutthisfeasibilitystudywillnot
providetheStatewithanyrecommendationsastowhetheritshouldchoosetopursueor
choosenottopursueAgreementStatestatus.IntheeventthattheStatedeterminesthat
pursuingAgreementStatestatusisappropriate,Thompson&Pugsley,PLLCispreparedto
continueasadvisorstotheStateinitsendeavorshouldtheStatesochoose.

STATEOFWYOMINGAGREEMENTSTATEFEASIBILITYSTUDY

HISTORICALPREFACE
A. OVERVIEWOFSOURCEMATERIALRECOVERYAND11E.(2)BYPRODUCTMATERIAL

TheStateEnrolledActNo.100specificallyrequiresthatthisfeasibilitystudyaddressthe
AEAmaterialsgeneratedatsourcematerialrecoveryfacilitiesknownassourcematerial
(uraniumandthorium)and11e.(2)byproductmaterialandthespecificAEAoperationknown
assourcematerialmilling.InorderfortheStatetomakeaninformeddecisionregarding
whethertopursueAgreementStatestatusfromNRC,itiscriticalthatthisfeasibilitystudy
provideacomprehensivediscussionofthetypeofmaterialsandoperationswithinthe
proposedscopereflectedintheabovenotedStateEnrolledActandthehistorybehindthe
AEAstreatmentofsourcematerial,11e.(2)byproductmaterial,andsourcematerial
milling.ThishistoricalcontextalsowillprovidetheStatewithanunderstandingoftheorigins
ofcurrentoverlappingjurisdictionalissuesbetweentheStateandNRC,whytheseissuesexist,
andtherolefederalpreemptionplaysinsuchissues.TheAEA,asamended,byUMTRCAandits
legislativehistoryprovidethefundamentalhistoricalcontextregardingtheseAEAmaterialsand
millingoperationsthatneedtobeaddressedpertherequirementsoftheEnrolledAct.Given
thattheEnrolledActspecificallystatesthatitsmainpurposeistoaddressandeliminatedual
jurisdictionissuesbetweenNRCandtheState,thefollowinghistoricaldiscussioniscriticalto
layingthefoundationfortheremainderofthestudy.

1. SOURCEMATERIALRECOVERYAND11E.(2)BYPRODUCTMATERIALHISTORY

TheAEA,asenactedin1954andamendedbyUMTRCAin1978providesthebasesfor
thedevelopmentofNRCsandallAgreementStateregulatoryprogramsforsourcematerial
andsourcematerialrecovery.Withrespecttosourcematerial,CongressusedtheAEAto
establishasystembywhichtheidentification,extraction,possessionandtransferofuraniumor
thoriumwouldberegulatedusinglicensescontainingspecificlicenserequirementsor
conditions.InChapter7oftheAEA,Congresscreatedaprogramunderwhichentitiesseeking
toengageintheproductionofsourcematerialcouldberequiredtoobtainlicensesfromthe
AtomicEnergyCommission(AECnowNRC)sothatsuchsourcematerialcouldbeusedfora
varietyofpurposessuchasresearchanddevelopmentandthecreationofspecialnuclear
material.6Itisextremelyimportanttonotethat,undertheAEAsstatutoryframework,NRC
nowissolelyanindependentregulatoryagencyand,assuch,hasnoauthoritytoencourage
andpromotethedevelopmentofatomicenergyforpeacefulpurposes.Nordoesitbearany
responsibilityforthedevelopmentorregulationofotherenergysources.7Thus,aprivate
entity(e.g.,sourcematerialrecoverycompany)orgovernmentalentity(e.g.,UnitedStates

6
42U.S.C.2093(a)(14)(hereinafterExhibit5).
7
49Fed.Reg.9352,9353(March12,1984)(hereinafterExhibit6).

DepartmentoftheArmy)isrequiredtovoluntarilysubmitlicenseorlicenseamendment
applicationstotheCommissioninordertopossess,use,andtransferAEAmaterialstowhich
NRCreacts.8[T]heCommissionhasnopowertocompelanapplicanttocomeforwardorto
requireanapplicant,oncehavingcomeforward,toprepareandsubmitatotallydifferent
proposal.9Whenreviewingalicenseorlicenseamendmentapplication,theavailable
alternatives[toNRC]aretogranttheapplication,granttheapplicationsubjecttocertain
conditions,ordenytheapplication,eitherwithorwithoutprejudice.10Thus,underthis
scheme,thelicensee,andnottheCommission,isprimarilyresponsibleforthesafe
managementofAEAmaterials.

Priortoimplementingalicensingprogramforsourcematerial,Congressneededto
definethepointatwhichtheAECsjurisdictionalauthorityoversourcematerialwouldbe
triggered.Giventhattherearedelineationsbetweensourcematerial(i.e.,uraniumorthorium)
asitresidesinnature,theextractionofsourcematerialoresbymining,andtheprocessingof
suchorestorecovertheirsourcematerialcontent,CongressdeterminedthattheAECs
jurisdictionshouldbeinvokedonlyafterremovalofsourcematerialfromitsplaceinnature.As
statedinSection62oftheAEA:

[u]nlessauthorizedbyageneralorspecificlicenseissuedbytheCommissionno
personmaytransferorreceiveininterstatecommerce,
transfer,deliver,receivepossessionofortitleto,orimportintoorexport
fromtheUnitedStatesanysourcematerialafterremovalfromitsplaceinnature.11

AECs/NRCs10CFRPart40regulationsdefineaclassofsourcematerialoresthat,nevertheless,
isnotsubjecttoCommissionregulationtermedunrefinedandunprocessedoresthathavebeen
removedfromtheirplaceinnature.Suchoresisdefinedasoreinitsnaturalformpriortoany
processing,suchasgrinding,roastingorbeneficiating,orrefining.12Thus,sourcematerialore
thathasnotundergoneprocessingactivitiessuchasthosethattakeplaceatauraniummill
(e.g.,crushing,grinding,andbeneficiating)isnotsubjecttoNRCsjurisdiction.

Themeaningofthephraseafterremovalfromitsplaceinnaturewasfurtherclarified
inNRCs1980GenericEnvironmentalImpactStatementonuraniummilling(GEIS),which
explainsthatthisphrasereferstosourcematerialassociatedwithprocessing(i.e.,ata
licenseduraniummill):

8
Intheeventofapotentialimminenthazardsuchasnationalsecurityconcerns,NRCcanissueorders
withoutwaitingforalicenseetoproposeanaction(e.g.,compensatorymeasuresorimmediately
effectiveorders).
9
Id.
10
Id.
11
42U.S.C.2092(emphasisadded)(hereinafterExhibit7).
12
See10CFR40.4(hereinafterExhibit8).

Section205(a)oftheUMTRCA[UraniumMillTailingsRadiationControlActof1978]
amendstheAtomicEnergyActof1954byaddinganewSection84whichstatesinpart
thattheCommissionshallinsurethatthemanagementofanybyproductmaterial,as
definedinsection11e.(2),iscarriedoutinsuchamannerastheCommissiondeems
appropriatetoprotectpublichealthandsafetyandtheenvironmentfromradiological
andnonradiologicalhazardsassociatedwiththeprocessing[ofsourcematerialore]and
withthepossessionandtransferofsuchmaterial13

Similarly,theAtomicSafetyandLicensingAppealBoardinIntheMatterofRochesterGasand
Electricstates:

TheAtomicEnergyCommissionsjurisdictioninthisareawastransferredtotheNRCon
January19,1975,bytheEnergyReorganizationActof1974,42U.S.C.5841(f).Asthe
quotedobservationindicates,theCommissionsauthorityoveruraniumoreandother
sourcematerialattachesonlyafterremovalfromitsplaceofdepositinnature,and
notwhentheoreismined.14

Therefore,sourcematerialinuraniumoreatauraniummillissubjecttoAEC/NRCjurisdiction,
whilesourcematerialinuraniumoreatauraniummineorduringtransporttoauraniummill
priortoprocessingisnotsubjecttoAEC/NRCjurisdiction,regardlessofitssourcematerial
concentration.

Section62oftheAEArequiresthatentitiesseekingtotransferorreceiveininterstate
commerceortotransfer,deliver,receivepossessionofortitletoortoimportintoorexport
fromtheUnitedStatessourcematerialobtainalicensefromtheCommission.15Section62also
addressesunimportantquantitiesofsourcematerial(whichCongressempoweredtheAECto
define)bystatingthatlicensesshallnotberequiredforquantitiesofsourcematerialwhich,in
theopinionoftheCommission,areunimportant.16Byregulation,theAEC/NRCdefined
unimportantquantitiesofsourcematerialtomean,[a]nypersonisexemptfromthe
regulationsinthispartandfromtherequirementsforalicensesetforthinsection62oftheAct
totheextentthatsuchpersonreceives,possesses,uses,transfersordeliverssourcematerialin
anychemicalmixture,compound,solution,oralloyinwhichthesourcematerialisbyweight
lessthanonetwentiethof1percent(0.05percent)ofthemixture,compound,solutionor
alloy.17Quantitiesofsourcematerialexceedingthe0.05%or500partspermillion(ppm),by

13
GEISatA89(emphasisadded)(hereinafterExhibit9).
14
8NRC551,*6(November17,1978),citing42U.S.C.2092(2005)(emphasisadded)(hereinafter
Exhibit10).
15
SeeExhibit7.
16
Id.
17
10CFR40.13(a)(hereinafterExhibit11).

weight,thresholdoftenarereferredtoaslicensablesourcematerial.TheAECGeneral
CounselsevaluationofSection62determinedthatitsprovisionsaremandatory.18

TheAECschoiceofthe0.05%/500ppm,byweight,thresholdforlicensablesource
materialhadlittletodowithpotentialradiologicalriskstopublichealthandsafetyorthe
environment.Atthetimetheunimportantquantitiesdeterminationwasissued,the
Commissionwasattemptingtogaugethetypesofuraniumbearingoresthatlikelywouldbe
necessarytocreatespecialnuclearmaterial.19

Inaddition,currentNRCregulationsprovideforasecondtypeofunimportant
quantitiesexemptionfromregulationunderAEASection62.Asstatedin10CFR
40.13(c)(1)(vi),rareearthmetalsandcompounds,mixtures,andproductscontainingnotmore
than0.25/2,500ppmpercentbyweightthorium,uranium,oranycombinationoftheseare
exemptfromlicensing.20Thisexemptionoftenplaysacrucialroleatrareearths(e.g.,
lanthanides)recoveryfacilitiesthatrecoversourcematerialaspartofasidestreamrecovery
processorthatproducewastestreamscontainingsourcematerial.

2. THECREATIONOFASOURCEMATERIALRECOVERYAND11E.(2)BYPRODUCT
MATERIALMANAGEMENTPROGRAM

Asnotedabove,whiletheinitialdevelopmentofasourcemateriallicensingprogram
findsitsoriginsinthe1954versionoftheAEA,thefurtherdevelopmentandevolutionofthe
sourcematerialrecoveryregulatoryprogramfindsitsoriginsUMTRCA,asamended.

i. URANIUMMILLTAILINGSRADIATIONCONTROLACTOF1978STATUTORY
PROGRAMANDMANDATE

Duringtheearlyperiodofthedomesticuraniumrecoveryindustry,theAECdidnot
considerthetailingsfromuraniumorthoriumrecoverytobeathreattopublichealthand
safetyortheenvironmentand,asaresult,littleregulatoryattentionfocusedonsuchtailings.
Indeed,theAECbelievedthatitsgeneralradiationprotectionregulationsat10CFRPart20

18
SeeLettertoH.L.Price,Director,DivisionofLicensingandRegulationfromNeilD.Maiden,Acting
GeneralCounsel,AtomicEnergyCommission,Re:MillTailings(December7,1960)(hereinafterExhibit
12).
19
Thebasisfortheselectionoftheunimportantquantitiesthresholdwasrecentlyhighlightedin2003
whenanInteragencyWorkingGrouprecommendedtotheCommissionthatalegislativeamendmentto
theAEAbeobtainedtolimitCommissionauthorityoverquantitiesofsourcematerialunderthe
unimportantquantitiesthreshold.ThisrecommendationwasrejectedbytheCommissionstating:
AlthoughtheCommissionagreesthattheproposedapproachisthemostefficientwaytoaddressthe
issue,becausetheprobabilityofsuccessisverylimited,theCommissiondoesnotwishtoexpendthe
resources.SeeSRMSECY030068InteragencyJurisdictionalWorkingGroupEvaluatingthe
RegulationofLowLevelSourceMaterialorMaterialsContainingLessThan0.05PercentByWeight
ConcentrationUraniumand/orThorium,(October9,2003)(hereinafterExhibit13).
20
SeeExhibit11.

10

wouldadequatelyaddressanypotentialradiationhazardposedbytailingspileoverflowsor
seepage,aswellasanyairborneradiationexposure.21However,inthelate1960sandearly
1970s,concernsaboutthecontrolofuraniumandthoriummilltailingsbegantosurface.For
example,theAEClearnedthaturaniummilltailingsinGrandJunction,Coloradohadbeen
dispersedandusedintheconstructionofresidentialandcommercialbuildingsandthatthere
existedapotentialthreatofadversehealthimpactstotheoccupantsofsuchbuildingsfrom
radongasgeneratedbytheradiuminsuchtailings.22

Inthistimeframe,duringactiveuraniumrecoveryoperations,theAEC(andlaterNRC)
implementedaseriesofBranchTechnicalPositions(BTP)andRegulatoryGuidestooversee
themanagementanddispositionofuraniummilltailings.However,atthattime,theAECtook
thepositionthatitwaswithouttheauthoritytoregulateuraniummilltailingsaftercessationof
activeuraniumrecoveryoperationsandlicensetermination.Later,inlightofthepotential
healthrisksassociatedwithmilltailings,theAECreevaluatedpotentialregulationofmill
tailings.TheAECdeterminedthatthethenrecentlyenactedNationalEnvironmentalPolicyAct
of1969(NEPA),incombinationwithitsbroadAEAauthorityprovideditwiththeabilityto
regulateuraniummilltailings.A1973memorandumpreparedbytheAECsOfficeofthe
GeneralCounselexpressedtheviewthat:

Whilejudicialattitudesaredifficulttopredict,itwouldappearlikelythat
licenseterminationinquestionwouldbeheldsubjecttoNEPAsection
102(2)(c).Therefore,itislikelythatAEChastheauthoritytorequireenvironmental
protectionmeasureswithregardtothemilltailings.23

ThisopinionwaselaborateduponfurtherbyNRClegalstaff:

TheterminationofalicenseisaprocedureauthorizedbytheAtomic
EnergyActof1954,asamended,andmaybeamajorfederalaction
withasignificantenvironmentaleffect.NEPAprovidesasupplemental
grantofsubstantiveauthoritytoconditiontheterminationforthe
purposeofenvironmentalprotection.(SeeSections103and105ofNEPA)

Accordingly,theCommissionwouldhavetheauthoritytorespond
favorablytothepetitiontoestablishregulationsforthepostlicenseenvironmental
controlofuraniummilltailings.Thebasisofenvironmental

21
SeegenerallyAmericanMiningCongress,CommingledUraniumMillTailingsAHistoricalPerspective,
(March4,1985).
22
UseofUraniumMillTailingsforConstructionPurposes:HearingsBeforetheRawMaterialsSubcomm.
oftheJointComm.onAtomicEnergy,92dCong.At417,7092(1971).
23
AECAuthoritytoRequirethataUraniumMillLicenseeProvideEnvironmentalprotectionMeasures
withRespecttoMillTailingsasaConditiontoLicenseTermination,MemorandumfromHowardK.
Shapar,AssistantGeneralCounsel,LicensingandRegulationDivision,AECtoL.ManningMuntzing,
(March29,1973)(hereinafterExhibit14).

11

authorityisNEPA,asimplementedthroughthelicensingauthorityofthe
AtomicEnergyActof1954,asamended.24

Subsequently,however,federalcourtdecisionsdeterminedthatNEPAispurelyaprocedural
statuteanddoesnotprovideanagencywithsupplementalsubstantiveauthoritytoregulatein
agivenarea;anagencyderivesitsjurisdictiontoregulateinanyareasolelythroughitsorganic
statute.25Asaresult,itbecameincreasinglyclearthatlegislationwouldberequiredto
authorizethecontrolofuraniummilltailingsafterlicensetermination.

Asnotedabove,in1978,CongressenactedUMTRCAtoprovideexpressstatutory
authoritytoregulatetheproduction,containment,andmonitoringofuraniumandthoriummill
tailingsduringandafteractiverecoveryoperations.UMTRCAwasbaseduponafindingthat
uraniumandthoriummilltailingslocatedatactive(i.e.,licensed)andinactive(i.e.,abandoned)
millsitesmayposeasignificant,potentialradiationhealthhazardtomembersofthepublic.26
InexplainingtheneedforUMTRCA,theHouseReportaccompanyingthelegislationreliedupon
thedescriptionofthepotentialpublichealthhazardofmilltailingsinthetestimonyofthen
NRCChairman,Dr.JosephHendrie:

TheNRCbelievesthatlongtermreleasefromtailingspilesmayposea
radiationhealthhazardifthepilesarenoteffectivelystabilizedtominimize
radonreleasesandpreventunauthorizeduseofthetailings.

Thecenterpieceofthisnewgrantofdirectauthoritytoregulateuraniummilltailingswasthe
creationofanewcategoryofAEAregulatedmaterials.Specifically,thedefinitionof
byproductmaterialwasmodifiedwhenCongresscreated11e.(2)byproductmaterial,which
isdefinedtomean:

thetailingsorwastesproducedbytheextractionorconcentrationof
uraniumandthoriumfromanyoreprocessedprimarilyforitssource
materialcontent.27

Thisclassofmaterialwas(andis)uniqueamongthematerialsregulatedundertheAEA,
becauseitisnotdefinedsolelyintermsofitsradiologicalcharacteristics,butinsteadisdefined

24
MemorandumfromJoannaBecker,ChiefRegulationsCounsel,NRCtoL.C.Rouse(October17,1975)
(emphasisadded).
25
Seee.g.,NRDCv.EPA,822F.2d104(D.C.Cir.1987)(holdingthatNEPAdoesnotacttobroadenan
agencyssubstantivepowers);seealsoCapeMayGreene,Inc.v.Warren,698F.2d179(3rdCir.1983)
(statingthatNEPAdoesnotgrantanagencyjurisdictionoutsidethescopeofthejurisdictionsetforthin
itsorganicstatute)(hereinafterExhibit15).
26
PubL.No.95604,at2(a),92Stat.302122(hereinafterExhibit16).
27
AEASection11e.(2)(42U.S.C.2014(e)(2))(emphasisadded).Previously,byproductmaterialhad
beendefinedtomeananyradioactivematerial(exceptspecialnuclearmaterial)yieldedormade
radioactivebyexposuretoradiationincidenttotheprocessofproducingorutilizingspecialnuclear
material.See42.U.S.C.2014(e)(1).ThisdefinitioniscurrentlylocatedatSection11e.(1)oftheAEA.

12

broadlyenoughtoencompassallwastesbothradioactiveandnonradioactiveresulting
fromuraniumoreprocessingatlicenseduraniumrecoveryfacilities.28Sincethisnewdefinition
ofbyproductmaterialisintendedtobeexpansiveandtocoverthebroadrangeofwastes
associatedwithuraniummilling,thetailingsandallotherwastesassociatedwithuranium
recoveryproducedatAEAlicenseduraniummillingfacilitiesarereferredtoas11e.(2)
byproductmaterial.Therelationshipbetweensourcematerialand11e.(2)byproductmaterial
isthefundamentaldrivingforcebehinduraniumrecoveryregulations,relevantguidanceand
policies,andlicenses/permitsfrom1978tothepresent.

Further,giventhatthestatutewasenactedtorespondtopotentialhealthrisks
associatedwiththepotentiallonglivedthreatposedby11e.(2)byproductmaterial(mill
tailings),thesecondfocusofUMTRCAsregulatoryprogram(otherthanthecreationofa
licensingprogram)istherequirementthatall11e.(2)byproductmaterialandthelandonwhich
suchmaterialisdepositedbetransferredtothefederalgovernmentortheStateinwhichthe
materialandlandislocatedforlongtermsurveillanceandmonitoring.29Section83oftheAEA,
asamendedbyUMTRCA,statesthat:

ownershipofanybyproductmaterial,asdefinedinsection11e.(2),
whichresultedfromsuchlicensedactivityshallbetransferredto(A)
theUnitedStatesor(B)intheStateinwhichsuchactivityoccurredif
suchStateexercisestheoptionundersubsectionb.(1)toacquireland
usedfordisposalofbyproductmaterial.30

Section83(b)alsoprovidesforthetransferoflandusedfordisposalof11e.(2)byproduct
materialtoeithertheUnitedStatesortheStateunlesstheCommissiondeterminespriorto
suchtermination[ofalicense]thattransferoftitletosuchlandandsuchbyproductmaterialis
notnecessaryordesirabletoprotectthepublichealth,safetyorwelfareortominimizeor
eliminatedangertolifeorproperty.31Further,UMTRCAmandatesthatthelongterm
custodianbealicenseeofNRCinperpetuityandthatthe11e.(2)byproductmaterialandits
associatedlandbetransferredatnocosttothegovernment.32

Later,in1983andinresponsetodiscontentmanifestedbyAgreementStateregulators
anduraniumrecoverylicenseesseekingtoproposesitespecificalternatives,Congress
amendedSection84oftheAEAtoallowNRCtoapprovelicenseeorAgreementStateproposed
alternativestotheCommissionsrequirementsiftheproposedalternativesprovidealevelof

28
See57Fed.Reg.20,525,20,526(1992)(hereinafterExhibit17).
29
Seegenerally42U.S.C.2113etseq(hereinafterExhibit21).
30
42U.S.C.2113(a)(2).
31
42U.S.C.2113(b)(1)(A).
32
Id.ItisalsoworthnotingthatUMTRCAprovidesforuniquelandstatusrequirementsfor11e.(2)
byproductmaterialproducedatfacilitiesunderalicenseineffectonUMTRCAseffectivedate(i.e.,
November8,1981).AsstatedinSection83(b)(4)oftheAEA,theCommissionshalltakeinto
considerationthestatusoftheownershipofsuchlandandintereststhereinandtheabilityofthe
licenseetotransfertitleandcustodythereoftotheUnitedStatesoraState.

13

protectionthatisequivalentto,totheextentpracticable,ormorestringentthanthelevelof
protectionaffordedbyNRCapplicants.33Congress1983amendmentsalsoclarifiedNRCs
responsibilitiesunderSection84(a)oftheAEAbyspecificallyrequiringthatEPA/NRCconsider
environmentalandeconomiccostsandbalancethosecostsagainstpotentialriskswhen
developingstandardsandrequirementsforthemanagementof11e.(2)byproductmaterial.34
Initsreportontheseamendments,theconferencecommitteeexplainedthat:

Theconfereesareoftheviewthattheeconomicandenvironmentalcostsassociated
withstandardsandrequirementsestablishedbytheagenciesshouldbearareasonable
relationshiptothebenefitsexpectedtobederived.Thisrecognitionisconsistentwith
theacceptedapproachtoestablishingradiationprotectionstandards,andreflectsthe
viewoftheconfereesthat,inpromulgatingsuchgeneralenvironmentalstandardsand
regulations,EPAandNRCshouldexercisetheirbestindependenttechnicaljudgmentin
makingsuchadetermination.35

TheregulatoryschemecreatedbytheUMTRCAamendmentstotheAEAwasandis
uniquebecauseofthemannerinwhichjurisdictionovertheradiologicalandnonradiological
aspectsof11e.(2)byproductmaterialisdividedamongthreemajorfederalagencies:EPA,NRC,
andtheUnitedStatesDepartmentofEnergy(DOE).Eachfederalagencyisassigneddifferent
responsibilitiesassociatedwithcreationandimplementationofauniformandcomprehensive
regulatoryregimefortheactiveoversightandlongtermcontrolof11e.(2)byproductmaterial.

InTitleIofUMTRCA,Congressestablishedaprogramtoidentifyandremediateso
calledinactivesites;thatis,sitesatwhichuraniummillingoperationshadoccurredinthe
pastorthatcontainedtailingsandotherwastesproducedduringsuchoperationsandthat
werenotcoveredbyanexistinglicense.

UndertheprogramsetoutinTitleIofUMTRCA,DOEisauthorizedtoenterinto
cooperativeagreementswithStatescontaininginactivesitesforthepurposeofremediating
thosesites.RemedialactionsundertakenbyDOEunderTitleIarerequiredtohavethe
Commissionsconcurrenceandtoconformwithgenerallyapplicablestandardsdevelopedby
EPAfortheprotectionofpublichealthandsafetyandtheenvironmentfrompotential
radiologicalandnonradiologicalhazardsassociatedwithtailingsandotheruraniummilling
wastes.36Followingremediationoftheseinactivesites,titletothetailingsandwastesfromthe
sitesandtothelandusedfortheirdisposalresideswithDOE,andthesitesaretobe
maintainedbyDOEinperpetuitypursuanttolicenseissuedbytheCommission.37Inaddition,
theCommissionisauthorizedtorequirethatDOE,asthecustodianofremediatedinactive
sites,undertakesuchmonitoring,maintenance,andemergencymeasuresastheCommission

33
52Fed.Reg.43,553(1987)(hereinafterExhibit18).
34
Pub.L.No.9741522(1983).
35
S.Rep.No.97113(1982),reprintedin1982U.S.C.C.A.N.3592,3617.
36
42U.S.C.7918(1994).
37
42U.S.C.7914(1994);seealso10CFR40.28.

14

maydeemnecessarytoprotectpublichealthandsafety.38TheCommissionalsocanrequire
DOEtotakeotheractionsthattheCommissiondeemsnecessarytocomplywithEPAsgenerally
applicablestandardsforprotectionagainstpotentialradiologicalandnonradiologicalhazards
associatedwithuraniummilltailingsandrelatedwastes.39

Forpurposesofthisstudy,theStateofWyominghastwo(2)TitleIUMTRCAsites:(1)
theSpooksitelocatedinConverseCountywhichwasoperatedbytheWyomingMiningand
MillingCompanyfrom1962to1965and(2)theRivertonsitelocatednearRivertonwhichwas
operatedbySusquehannaWestern,Inc.from1958to1963.AspertheUMTRCATitleI
programdiscussedabove,theselegacysiteshavebeenreclaimedandcurrentlyunderthe
activemanagementofDOE.ThesetwositesarenottheresponsibilitiesoftheStateandthe
WyomingDepartmentofEnvironmentalQuality(WDEQ),buttheStatedoesmaintainactive
communicationwithDOEonthemanagementofthesesites.

InparallelwiththeTitleIprogramisTitleII,whereinCongressgrantedEPAandNRC
expansiveauthoritytoregulatedirectlyallaspectsofthemanagementanddispositionof
uraniummilltailingsandrelatedwastesgeneratedatactive(i.e.,licensed)uraniummill
tailingssites.40LikeTitleI,TitleIIestablishesatripartitejurisdictionalschemeinvolvingEPA,
NRC,andDOE,41eachofwhichhaveadefinedrole.UnderTitleII,NRChastheleadon
addressingregulationandclosureofsites,andDOEhasonlythelongtermsurveillanceand
monitoringresponsibilitythatitalsohasunderTitleI.EPAsresponsibilitiesareessentiallythe
sameunderbothTitlesIandII.

TheStateofWyomingcurrentlyhasnine(9)TitleIIUMTRCAsitesthatareundergoing
somephaseofactivereclamation,siteclosure,and/orlicensetermination.Theseninesitesare
asfollows:(1)theHighlandsiteoperatedmostrecentlybyExxon/MobilnorthofGlenrock;(2)
theBearCreeksiteoperatedmostrecentlybyBearCreekUraniumCompanynearGlenrock;(3)
thePetrotomicssiteintheShirleyBasin(thissitehasbeentransferredtoDOE);(4)the
PathfindersiteinShirleyBasinwhichwasoperatedmostrecentlybyPathfinderMines(and
currentlysubjecttopurchasebyUrEnergy,LLC);(5)theSweetwatersitecurrentlyonstandby

38
See42U.S.C.2113(b)(5).
39
Inmanyrespects,theroleassignedtoDOEunderTitleofUMTRCAisakintothatofasuper
potentiallyresponsiblepartyor(PRP)undertheComprehensiveEnvironmentalResponse,
Compensation,andLiabilityAct(CERCLA),42U.S.C.9601etseq.,sinceDOEisresponsiblefor
remediatingTitleIsitesandmaintainingtheminperpetuity,andtheagencyisresponsibleformostof
thecostsassociatedwiththoseefforts.Indeed,becauseoftheuniqueroleperformedbyDOEatTitleI
sites,CongressdeemeditappropriatetospecificallyexcludethosesitesfromthereachofCERCLA.See
42U.S.C.9601(22).
40
UnderSection274oftheAEA,StatescanenterintoagreementswithNRCunderwhichtheStates
assumetheauthorityoftheCommissionwithrespecttotheregulationofuraniummilltailingsand
relatedwastes.
41
In1974,theAECwasterminatedanddividedintoapromotionalandaregulatoryagency.TheEnergy
ResearchandDevelopmentAdministration,theprecursortothecurrentDOE,wasthepromotional
agency.ThenewregulatoryagencywasNRC.

15

andoperatedbyKennecottUraniumCompanysouthofJeffreyCity;(6)theUMETCOsiteinthe
GasHillsnorthofJeffreyCitywhichiscurrentlyintheprocessofbeingtransferredtoDOE;(7)
theAmericanNuclearCorporation(ANC)siteintheGasHills;(8)theLuckyMcsitepreviously
operatedbyPathfinderMinesCorporationintheGasHills;and(9)theSplitRocksiteoperated
previouslybyWesternNuclear,Inc.(WNI)nearJeffreyCity,whichispresentlyintheprocessof
beingtransferredtoDOE.Eachofthesesites(withtheexceptionofthePetrotomicssite)
currentlyareregulatedunderanactiveNRClicenseregardlessofwhatstageofsitereclamation
andclosurehasbeencompleted.

PursuanttoSection275oftheAEA,CongressassignedEPAtheauthorityto
promulgategenerallyapplicablestandardsfortheprotectionofpublichealthandsafetyand
theenvironmentfromthepotentialradiologicalandnonradiologicalhazardsassociatedwith
thepossession,transfer,anddisposalof11e.(2)byproductmaterial.42Forthenonradiological
hazardsassociatedwith11e.(2)byproductmaterial,thesegenerallyapplicablestandardsareto
provideequivalentprotectiontothatprovidedbyEPAsResourceConservationandRecovery
Act(RCRA)standards.43Asaresult,11e.(2)byproductmaterialisspecificallyexemptedfrom
EPAregulationunderRCRA44andpermittingauthorityoversuchmaterialisdeliberately
withheldfromEPA.

WhiletheregulationsdevelopedfortheTitleIinactiveuraniummilltailingssitesare
notrelevanttothispapersdiscussionofregulatoryregimesassociatedwithactiveorfuture
uraniumrecoveryoperations,adiscussionhasbeenincludedheretoprovideacomplete
overviewoftheevolutionoftheUMTRCAregulatoryprogramapplicabletosourcematerial
recoveryoperations.ImplementingUMTRCAsmandate,EPAissueditsfirstsetofgenerally
applicablestandardsin1983whichappliedonlytoinactivemilltailingssites(i.e.,sites
regulatedunderTitleIofUMTRCAthatwerenolongeroperatedunderanactivelicense).45
ThisoccurredafullthreeyearsafterNRCissueditsGEISanditsinitialregulationsforuranium
milling.AlthoughthesetypesofsiteswerenotaddressedinNRCsinitialregulations,EPAs
inactivesiteregulationsopenedawindowonsomeimportantdifferencesbetweenEPAand
NRCrequirements,particularlywithrespecttotheestablishmentofstandardsforcontrolof
radonemissionsfrommilltailings.Forexample,EPAadoptedaradonemissionstandardof20
picocuriespermetersquaredpersecond(pCi/m/s),whileNRChadadoptedamuchmore
stringentstandardof2pCi/m/swithinaminimumoften(10)feetofcover.Inaddition,EPAs
regulationsdidnotincludeanyspecificrequirementsforconstructionofradonbarriers(since,
arguably,EPAdoesnothaveanyauthoritytoimposesuchacontrolrequirementontailings
facilities)although,initsrulemakingmaterials,EPAindicatedthatits20pCi/g/m/sradon
standardwaspremisedontheuseofthickradonbarriers.

42
42U.S.C.2022(b)(hereinafterExhibit20).
43
SeeExhibit21.
44
See40CFR261.4(hereinafterExhibit22).
45
48Fed.Reg.590(January5,1983)(hereinafterExhibit23).

16

EPAsinactivesiteregulationsalsoestablishedwhathascometobeknownasthe
5/15cleanupstandardforradium226insoil,primarilyduetowindblowntailingsor
tailingsspills.Underthisstandard,radiumconcentrationsinsoilaretobereducedtolevelsof
nomorethan5pCi/ginthefirst15cmofsoilandnomorethan15pCi/gineachdescending15
cmsoilhorizonaveragedover100squaremetersegments.Inaddition,EPArequiredthat
disposalsystemsbedesignedtoprovidereasonableassuranceofachievingtheradon
emissionstandardfor1,000years,butnolessthan200yearsandtodosowithouttheneedfor
activemaintenance.Finally,EPAdidnot,initsinactivesitesregulations,establishany
generallyapplicablestandardsforgroundwatercontaminationbecause,inEPAsviewatthe
time,therisksfromgroundwatercontaminationwerenotsufficientlysignificanttorequirethe
developmentofsuchstandards.Thus,inthepreambletoitsinactivesitesregulations,EPA
explained:

Wedonotbelievethattheexistingevidenceindicatesthatgroundwatercontamination
frominactivemilltailingsisorwillbeamatterofregulatoryconcern.Wehavedecided,
therefore,nottoestablishgeneralsubstantivestandardsonthissubject.46

Consequently,insteadofestablishinggenerallyapplicablegroundwaterstandardsinitsinactive
sitesregulations,EPAconcludedthatgroundwaterissueswouldhavetobeaddressedbyDOE
onasitebysitebasis.47

Laterthatsameyear,EPAissueditsgenerallyapplicablestandardsforactivesites(i.e.,
licensedsitesregulatedunderTitleIIofUMTRCA).48Aswiththeinactivesitestandards,EPAs
activesiteregulationsrequirethatradonemanationfrommilltailingsdisposalsitesbelimited
to20pCi/m/s,49thatthecontrolsprovidereasonableassuranceofachievingthisstandard
for1,000years,butnotlessthan200years,50andEPAsactivesiteregulationsalsoincorporate
the5/15standardforradium226insoil.51EventhoughEPAsgenerallyapplicablestandards
forinactiveandactivemillsitesareessentiallythesamewithrespecttothese
requirements,theactivesitesregulationsdeviatesignificantlywithrespecttothegenerally
applicablegroundwaterstandards.52ThegroundwaterstandardsinEPAsactivesites
regulations,whichweredirectedatbothpotentialradiologicalandnonradiological(i.e.,
hazardous)constituents,areintendedtoprovidealevelofprotectionfornonradiological(i.e.,
hazardous)constituentsequivalenttothatprovidedbyEPAsregulationsunderRCRA.53The
latterwerelifteddirectlyfromEPAsRCRAhazardouswastegroundwatercorrectiveaction
requirementsat40CFRPart264etseq.Thegroundwaterstandardsweredividedintoa
primarystandardandasecondarystandard.Theprimarystandardisadesignstandard,

46
Id.
47
Id.
48
48Fed.Reg.45,926(1983).
49
Id.at45,947.
50
Id.
51
Id.
52
See60Fed.Reg.2854(1995)(hereinafterExhibit24).
53
SeeExhibit21.

17

requiringtheinstallationofabottomlinerunderallnewtailingsimpoundmentsandundernew
extensionsofexistingimpoundments.Thesecondarystandardisaperformancestandard,
requiringthatgroundwateratthepointofcompliance(POC)(i.e.,thedowngradientedgeofthe
tailingsimpoundment)meetsbackgroundlevelsordrinkingwaterstandards(i.e.,maximum
contaminantlimits(MCL),whicheverishigher.Additionally,intheeventthatneither
backgroundnoranMCLisachievable,licenseescanseekanalternateconcentrationlimit(ACL)
whichisasitespecific,riskbasedlimit.ACLsassurethatconcentrationsatthePOCwillresult
ingroundwaterconstituentconcentrationsthatareprotectiveofpublichealth,safety,andthe
environmentatthepointofexposure(POE).Interestinglyenough,althoughneitherEPAs
initialinactivesitesregulationsnorNRCsinitialregulationsforactivesitesprovidedsuch
standardsforgroundwatercorrectiveaction,siteclosureexperienceindicatesthat,inmost
cases,theACLbasedPOEwilldeterminethegeographicalboundariesofTitleIIsitestobe
turnedovertoDOEforlongtermcustodianship.

PursuanttotheAmericanMiningCongressv.Thomas54caseintheUnitedStatesCourt
ofAppealsfortheTenthCircuit(TenthCircuit),EPAwasrequiredtoreviewitsinactivesite
programandtoconformitsinactivesiteregulationsforgroundwatertothoseforactive
sites,whichEPAeventuallydid.

UnderUMTRCA,CongressspecificallydesignatedNRCastheleadagencyfor
implementingandenforcingEPAsgenerallyapplicablestandardsthroughlicensing.55Section
275(d)oftheAEAprovidesthat[i]mplementationandenforcementofthestandards
promulgated[byEPA]pursuanttosubsection(b)ofthissectionshallbetheresponsibilityofthe
CommissionintheconductofitslicensingactivitiesunderthisAct.56Inaddition,Congress
expandedNRCsregulatoryauthorityunderSection84oftheAEAtodevelopitsown
requirementsforthemanagementof11e.(2)byproductmaterial.Specifically,Section84(a)of
theAEAdirectsNRCtoensurethatany11e.(2)byproductmaterialismanagedinamanner:

(i) thattheCommissiondeemsappropriatetoprotecthealth,safety,andthe
environmentfromthepotentialradiologicalandnonradiologicalhazards
associatedwithsuchmaterials;
(ii) thatconformswiththegenerallyapplicablestandardsdevelopedbyEPA;and
(iii) thatconformswiththegeneralrequirementsestablishedbyNRC,comparableto
standardsapplicabletosimilarhazardousmaterialsregulatedundertheSolid
WasteDisposalAct[42U.S.C.6901etseq.].57

54
AmericanMiningCongressv.Thomas,772F.2d617,640(10thCir.1985)(Onremand,theEPAwill
havetotreatthesetoxicchemicalsthatposeagroundwaterriskasitdidintheactivemillsite
regulation.)(hereinafterExhibit25).
55
SeeExhibit20.
56
Id.
57
SeeExhibit21.

18

PursuanttoitsnewUMTRCAauthority,inAprilof1979,NRCissuedaDraftGeneric
EnvironmentalImpactStatement(DGEIS)examiningthepotentialenvironmentalramifications
ofuraniummillingactivitiesandpossibleregulatorystandardspertainingtothoseactivities.A
fewmonthslater,NRCissuedproposedregulationsgoverningactiveuraniummillingandlong
termcontrolandmaintenanceofmilltailingsfacilities.58Theseproposedregulationswere
controversialfortworeasons.First,theyincorporatedveryconservativestandards(e.g.,a
maximumradonemanationrateof2pCi/m/switharequiredminimumcoverofatleastten
(10)feettoaddressradiationrisksthatwereadmittedtobequitesmallforpotentiallyexposed
individuals.Second,theproposedregulationswerecontroversial,becausetheywereissued
beforeEPAhaddevelopeditsgenerallyapplicablestandardsforsuchsites.Since,underthe
regulatoryschemesetoutinUMTRCA,regulationsdevelopedbyNRCgoverninguraniummill
tailings(11e.(2)byproductmaterialgenerally)aretoconformtothegenerallyapplicable
standardspromulgatedbyEPA,itwasarguedatthetimethatNRCsproposedregulationswere
premature.

However,despitetheseobjections,NRCproceededtofinalizetheseproposed
regulations.Inthefallof1980,NRCpublisheditsfinalregulationsforuraniummilling
activities59containedin10CFRPart40,AppendixAandalsoannouncedtheavailabilityofthe
finalGEIS.60Inkeepingwithitsproposedregulations,NRCsfinalregulationsadopted
extremelyconservativestandardsforthemanagementanddisposalofuraniummilltailings.In
addition,thefinalregulationsweredirected,forthemostpart,atabatingradonwhich,atthe
time,wasseentobetheprimarypotentialthreattohealthposedbyuraniummilltailingsand
relatedwastes.Notably,groundwaterprotectionissueswerelefttobeaddressedonasiteby
sitebasis.

Then,sinceEPAsgenerallyapplicablestandardsforactivesiteswereissuedafterthe
CommissionissueditsregulationsunderUMTRCAand,becauseitsregulationsmustconformto
EPAsstandards,NRCwasforcedtoreviseitsregulations.In1985,NRCfocusedits
conformanceeffortsonEPAsstandardsforsurfacestabilizationandradonprotection.61The
Commissionpublishedafinalrulein1985thatreplacedits2pCi/m/sradonstandardwith
EPAs20pCi/m/sstandard.Similarly,theCommissioneliminatedtherequirementinits
originalregulationsforaminimumcoveroften(10)feetandadoptedinitsplaceEPAs
longevitystandardunderwhichthesystememployedtocontainmilltailingsmustprovide
reasonableassuranceofremainingeffectivefor1,000yearsand,inanyevent,atleast200
yearsutilizingpassivecontrols.62Also,NRCmodifieditsregulationstospecifythatradonand
longevitystandardsapplyonlytoportionsofasiteordisposalareathatexceedthe5/15
radiuminsoilstandard.63In1990,NRCissuedfinalsurfacestabilizationguidance64which

58
44Fed.Reg.50,015(1979)(hereinafterExhibit26).
59
45Fed.Reg.65,521(1980)(hereinafterExhibit27).
60
SeeNRCGEIS,NUREG0706(1980).
61
50Fed.Reg.41,852(1985)(hereinafterExhibit28).
62
Id.at41,856
63
Id.at41,860.

19

requiredmostlicenseestorevisetheirapprovedsurfaceclosureplans.AlthoughNRC
conformeditsregulationstoEPAsradonandsurfacestabilizationstandardsreasonablyquickly,
ittooksignificantlylongertoconformitsregulationstoEPAsgroundwaterstandards.Indeed,
althoughNRCpublishedanadvancenoticeofproposedrulemakinginNovemberof1984,itwas
notuntilthree(3)yearslater,attheendof1987,thatNRCsfinalgroundwaterrequirementsin
AppendixAwerepromulgated.65Thoseregulations,likeEPAsgroundwaterregulations,
includeadesignstandardandaperformancestandard.Also,liketheEPAregulations,NRCs
performancestandardrequiresthelicenseetoachievebackgroundconcentrations,drinking
waterstandardsoranACL.Further,theCommissioninitiatedaprogrambywhichlicenseesare
requiredtoimplementgroundwatercorrectiveactionprograms(GWCAP)withineighteen(18)
monthsifcontaminationisfoundtopassthePOCtoensurecompliancewithrelevant
groundwaterstandards.

NRCsfailuretopromulgatefinalgroundwaterregulationspriorto1987created
difficultiesforsomemilloperators.Sinceworlduraniummarketconditionswerebeginningto
depressthedomesticuraniumrecoveryindustry,manyuraniummillswereplacedonstandby
statusandbegantoaddressfinalsiteclosureseriously.However,achievingfinalsiteclosure
was,asapracticalmatter,impossibleuntilNRCsgroundwaterregulationswerecompleted,
andsuchclosureeffortswerefurtherdelayedduetoNRCsfailuretotimelyissueguidanceon
obtainingACLs.Indeed,NRCdidnotissuefinalguidanceonACLsuntilDecemberof1992.
Thus,asapracticalmatter,itwasnotuntil1993thatNRCsregulatoryrequirementsand
associatedguidancewereinplacesothatlicenseescouldproceedtofinalsiteclosureand
licenseterminationwithreasonableassuranceabouttherulesofthegame.

ii. 10CFRPART40,APPENDIXACRITERIAFORSOURCEMATERIALRECOVERY

Withthisevolutionofmilltailingscontrolrequirementsinmind,currently,the
Commissionsregulationsprovidingforthesafedisposal,containment,andlongtermoversight
of11e.(2)byproductmaterialarecontainedintheCriteriasetforthin10CFRPart40,Appendix
A.

AppendixAsetsforthbroad,performanceorientedCriteriagoverninguraniumrecovery
activitiesandwastedisposal.Atatimewhenemergingenvironmentalregulationswere
typicallyextremelyprescriptive(e.g.,EPA),AppendixAcanbeclassifiedassomewhataheadof
itstimebecauseNRCsoughttodevelopperformanceorientedCriteriaratherthanprescriptive
regulationssothaturaniumrecoverylicenseescouldaddresssitespecificcircumstances
effectively.66Intotal,AppendixAcontainsthirteen(13)Criteriadesignedtorequirelicensees
toproperlylocate,manage,anddecontaminateanddecommission(D&D)theirsites.

64
SeeUnitedStatesNuclearRegulatoryCommission,FinalStaffTechnicalPosition,DesignofErosion
ProtectionCoversforStabilizationofUraniumMillTailingsSites(August1990)(hereinafterExhibit29).
65
52Fed.Reg.43,553(1987)(hereinafterExhibit30).
66
NRCStaffdevelopedtheseAppendixACriteriamindfulofthefactthattheproblemofmilltailings
managementishighlysitespecific.Theprecisedetailsofaprogramcanbeworkedoutonlywhenthe

20


Asnotedabove,NRCsperformanceorientedCriteriainAppendixAandapplicable
guidancearespecificallydesignedtoallowlicenseestotakeintoaccountsitespecific
conditions.TheIntroductiontoAppendixAstates:

Inmanycases,flexibilityisprovidedinthecriteriatoallowachievingan
optimumtailingsdisposalprogramonasitespecificbasisLicenseesor
applicantsmayproposealternativestothespecificrequirementsinthis
appendix.Thealternativeproposalsmaytakeintoaccountlocalorregional
conditions,includinggeology,topography,hydrology,andmeteorology.67

SinceAppendixAwaspromulgatedwiththeintentionofmaintainingflexibleperformance
orientedcriteriaandSection84(c)oftheAEAasamendedbyUMTRCAspecificallyauthorizesit,
NRCwillevaluatesitespecificalternativesproposedbyalicenseeinconjunctionwitha
licenseesoperationsorD&Dproposals.AsstatedintheIntroductiontoAppendixA:

theCommissionmayfindthattheproposedalternativesmeetthe
Commissionsrequirementsifthealternativeswillachievealevelofstabilization
andcontainmentofthesitesconcerned,andalevelofprotectionforpublic
health,safety,andtheenvironmentfromradiologicalandnonradiological
hazardsassociatedwiththesites,whichisequivalent,totheextentpracticable,
ormorestringentthanthelevelwhichwouldbeachievedbytherequirements
ofthisappendixandthestandardspromulgatedbytheEnvironmental
ProtectionAgencyin40CFRpart192,subpartsDandE.68

AlternativesunderAppendixAcanbeviewedfromtwo(2)perspectives:(1)alternativestoa
singleCriterionorCriterionrequirementsand(2)asinglepackageoflegal/regulatoryand/or
technicalitemsthatisanalternative.Theformeristhemostcommonformofalternativeas
licenseesmayproposealternativegroundwaterstandardsfromthoseprescribedinCriterion
5(B)(5)suchastheuseofsupplementalgroundwaterstandards(originallyintendedforTitleI
sites).Thelatterisalesscommonlyused,butcurrentlyacceptedandeffective,approachsuch
asthepackageofgroundwatermodeling,durableinstitutionalcontrols,andrevisedlongterm
surveillanceboundary(LTSB)withsubsequentlandpurchaseandtheaforementioned
institutionalcontrolsusedbyWNIattheSplitRockTitleIIsiteandapprovedbyNRCStaffand
theCommission.EitherapproachispermittedinAppendixAandisalegalrightforanysource
materialrecoverylicensee.

uniqueconditionsofasiteareknown.Indeed,thewordrequirementsintheIntroductionto
AppendixAwasreplacedwiththewordcriteria,Exhibit9atA81,82.
67
See10CFRPart40,AppendixA(emphasisadded)(hereinafterExhibit61).
68
Tobesuccessful,licenseeproposedalternativestoNRCorEPAregulatoryrequirementslikelywill
requiresubstantialjustification,thoroughreviewbyNRCStaff,apubliccommentperiod,and,
ultimately,adecisionbytheCommission.

21

Criterion1discussesthegeneralgoalsandbroadobjectivesforlocatingauranium
recoveryand/ortailingsdisposalsite.Generally,properlocationofasiteshouldbebasedon
thepermanentisolationoftailingsandassociatedcontaminantsbyminimizingdisturbance
anddispersionbynaturalforces,andtodosowithoutongoingmaintenance.Fourspecific
factorsarelistedforalicenseesconsiderationwhenselectingasiteslocationincluding:

(1) Remotenessfrompopulatedareas;
(2) Hydrologicalandothernaturalconditionsastheycontributetocontinued
immobilizationandisolationofcontaminantsfromgroundwater
sources;and
(3) Potentialforminimizingerosion,disturbance,anddispersionbynatural
forcesoverthelongterm;and
(4) Thesiteselectionprocessmustbeanoptimizationtothemaximum
extentreasonablyachievableintermsofthesefeatures.

Criterion1alsoprioritizesthelocationandisolationofasitestailingsoveranyshortterm
conveniencesorimpactsthatmightoccurfromsiteselection.Tailingsdisposalplansalsomust
requirethatnoactivemaintenanceforthepreservationofsiteconditionswillbenecessary.

Criterion2brieflyaddressesthedisposalofwastesfromuraniumrecoveryactivitiesat
remoteand/orsmallsitesandtheneedfortransportationofwastefordisposalversusthecosts
ofsuchtransportation.Indeed,inanefforttoavoidproliferationofsmallwastedisposalsites
andtherebyreduceperpetualsurveillanceoperations,Criterion2statesthatbyproduct
materialfromvarioustypesofsourcematerialrecoveryoperationssuchasfromsmallabove
grounduraniumrecoveryoperationsorISRfacilitiesaretobedisposedofatexistinglargemill
tailingssitesratherthanestablishingandcharacterizingnewdisposalsites.Thescenarioin
whichitwouldbeappropriatetodevelopandassessanewdisposalsite(e.g.,forISRgenerated
11e.(2)byproductmaterial)iswhenitcanbedemonstratedthatthenatureofthewastestobe
disposedandthecostsandenvironmentalimpactsfromthetransportofsuchwastestoan
existingdisposalsiteareshowntobeimpracticableoritsbenefitsclearlyoutweighthebenefits
ofdisposalinexistingtailingsimpoundments.69

Criterion3statesthattheprimeoptionfordisposaloftailingsisplacingthembelow
gradeineitherminesorspeciallyexcavatedpits.Further,inthecasethatanevaluationofsite
geologicandhydrologicalconditionsdemonstratesthatdisposalfullybelowgrademaybe
impractical,itmustbedemonstratedthatanabovegradedisposalprogramwillprovide
reasonablyequivalentisolationofthetailingsfromnaturalerosionalforces.

Criterion4listssiteanddesigncriteriathatmustbefollowedregardlessofwhetherthe
tailingsaredisposedaboveorbelowgrade.Themainfocusoftheserequirementsare

69
Criterion2snonproliferationofsitespolicyfitscomfortablywithNRCspolicyfavoringwastedisposal
overstorageandwiththeconceptofusingandnotlosingexistinglicenseddisposalcapacityfordisposal
andlongtermisolationofsimilarnon11e.(2)byproductmaterialwastes.

22

controllinggeologicforcesthatcouldcauseshiftingandescapeoftheircontentsfromdisposal
unitsincludingfinalrockcoverdesignsandtopographicalfeatureswhichprovidegoodwind
erosionprotection.Topographicalfeaturessuchasthesteepnessofunderlyingslope
formationsandcontouringofimpoundmentsurfacesarealsodiscussed.

Perhapsthemostextensivecriterion,Criterion5,incorporatesthebasicgroundwater
protectionstandardsaspromulgatedbyEPAin40CFRPart192,SubpartsD&Ewhich,asnoted
above,incorporateRCRAstandardsin40CFRPart264et.seq.andwhichapplybothduring
operationsandtofinalclosure.TheprimarystandardinCriterion5focusesonthetypeofliner
necessarytoprotectgroundwaterduringthemanagementofuraniumorthoriummilltailings.
Additionally,asecondarygroundwaterstandardisprovidedrequiringthathazardous
constituentsenteringgroundwatermustnotexceedconcentrationlimitsintheuppermost
aquiferbeyondthepointofcomplianceduringthecomplianceperiod.Criterion5prescribesa
specificcourseofactionforimplementingprimaryandsecondarygroundwaterstandardswhich
includeprovisionsforACLs,theclassificationofhazardousconstituents,andwhethertheymay
beexemptedfromtheregulation.

Criterion6addressestheconstructionandcomplianceofafinalradonbarrier.The
barriermustbecompletedasexpeditiouslyaspracticableconsideringtechnologicalfeasibility
afterthepileorimpoundmentceasesoperation70accordingtoaCommissionapproved
reclamationplan.Whendisposingofbyproductmaterials,alicenseemustplaceanearthen
coverorotherapprovedalternativeovertailingsandwastesaftermillingoperationsceaseand
closethedisposalsiteprovidingreasonableassurancesofcontrolofradiologicalhazards
effectivefor1,000years,totheextentreasonablyachievable,and,inanycase,foratleast200
years,andlimitreleasesofradon222fromuraniumbyproductmaterialssoasnottoexceed
anaveragereleaserateof20pCi/m/s71

Additionally,NRCincludedwhathasbeentermedthe5/15standardinCriterion6(6),
whichisthebenchmarkfordeterminingwhethertherequirementsforlongevityandcontrolof
radonreleasesapplytoanyportionoflandcontainingbyproductmaterial.Theradonrelease
requirements(i.e.,coverand2001,000yearpassivecontrols)willapplytoportionsofland

70
ThisexpeditiouslyaspracticallanguageandotherrelatedlanguagewasinsertedinCriterion6as
partofacomprehensivesettlementbetweenEPA,theAmericanMiningCongress(AMC),individual
licensees,theEnvironmentalDefenseFund(EDF),andtheNaturalResourcesDefenseCouncil(NRDC)
thatinvolvedEPArescinding40CFRPart61,SubpartTandanNRCrulemakinginresponsetheretoto
avoidoverlappingregulationoffinallydecommissionedTitleIImilltailingssites.Thegoalofthese
changeswastoaddregulatoryteethtoCriterion6tostimulateexpeditiouscoveringoftailings
impoundmentstolimitradonemissionsatTitleIIsiteswhicharenolongeronstandbyoractively
processing.Anotherchangeistherequirementtoactuallytestareclaimedtailingssite(orportions
thereofintheeventofstagedreclamation)toseethat,asreclaimed,itsatisfiesthe20pCi/m/s
standard.Thiseffectivelychangedthe20pCi/m/sstandardfromadesignstandardtoaperformance
standard.
71
UnitedStatesNuclearRegulatoryCommission,FinalStaffTechnicalPosition,DesignofErosion
ProtectionCoversforStabilizationofUraniumMillTailingsSites(August1990);seeExhibit29.

23

containingbyproductmaterialunless,averagedoverareasof100squaremeters,radium
concentrationdoesnotexceedbackgroundlevelsbymorethan:(i)5pCi/gofradium
226averagedoverthefirst15centimeters(cm)belowthesurface,and(ii)15pCi/gof
radium226averagedover15cmthicklayersmorethan15cmbelowthesurface.NRClater
modifiedCriterion6(6)todealwithquestionsraisedbyitsnewsocalled25mremD&D
standardforfuelcyclefacilities72(whichisexpresslyinapplicabletouraniumrecoveryfacilities)
toaddresssurfacecleanuprequirementsforradionuclidesotherthanradiumfoundatsuch
facilitiessuchasuraniumandthorium.Asaresult,nowdosefromthe5/15radiuminsoil
standardprovidesabenchmarkdoseforcleanupofconcentrationsofotherradionuclides.73

Criterion7requiresthatatleastoneyearpriortomajorsiteconstructionand
operations,amonitoringprogrammustbeconductedprovidingbaselinedataonamillsites
conditions.Additionally,duringmilloperations,amonitoringprogrammustbeconductedto
ensurethatallaspectsofthemillareincompliancewithapplicablestandardsandregulations.
Thepurposesforsuchprogramsandguidelinesfortheirimplementationaccordingtolicense
issuancedatesalsoareincluded.

Criterion8summarizesitsprimarypurposesbystatingthatmillingoperationsmustbe
conductedsothatallairborneeffluentreleasesarereducedtolevelsaslowasisreasonably
achievable(ALARA).Emissionscontrolswouldbetheprimarymethodtocontrolsuch
effluentreleasesandinstitutionalcontrolssuchasextendingtheboundariesofthesitealso
maybeemployedasnecessary.

Criterion9,whichhasbecomeanincreasingsourceofpotentialregulatoryscrutinyin
recentyears,dealswiththefinancialcriteriaassociatedwithstartingsiteoperationsand
subsequentfinalD&Dforlicenseterminationpurposes.Thoughsomewhatambiguousinits
language,Criterion9requiresthatalicenseepostasuretybondorotherfinancialinstrument
toguaranteethatproperfundingwillbeavailableforanindependentcontractortoperform
reclamationactivitiesatthesiteaccordingtoanapprovedreclamationplan,whenthelicensee
eithercannolongercontinuelicensedactivitiesorgoesintobankruptcy.74Thesuretybondor
financialinstrumentmustbeupdatedannuallytoadjustforchangesininflation,reclamation
activities,oranyotherfactorsthatmightinfluencecostseitherupordown.Thismustbedone
pursuanttoaCommissionapprovedlicenseamendmentwhichcarrieswithitthepotentialfor
interestedpartiestoseekapublichearingonanysuchamendment.

72
See10CFR20.1400etseq.
73
See10CFRPart20,SubpartE,1401etseq(hereinafterExhibit31).
74
NRCisespeciallyattentivetoinadequatesuretyconcernsinlightoftheAmericanNuclearandAtlas
Corporationbankruptcies.Asaresult,licensees(andinparticularthoseseekingtoprocessalternate
feedsordirectlydisposeofotherthan11e.(2)byproductmaterialwastes)shouldpayparticularheedto
thoroughjustificationofreclamationestimates.Adequatesuretyand,perhaps,someadditionalfunding
forLTSMbyDOEmayhelptomitigatestateandlocaloppositiontosuchunconventionallicensed
activitiesbyprovidinglongtermsurveillanceandmonitoring(LTSM)resourcesaboveandbeyondthe
minimuminCriterion10.

24

Criterion10mandatesthataminimumof$250,000in1978dollars(i.e.,currently
approximately$900,814.70(adjustedaccordingtothe2013ConsumerPriceIndex)mustbe
paidtotheUnitedStatesGeneralTreasuryortotheappropriateStateagencypriortothe
terminationofauraniumorthoriummilllicensetocoverthecostsoflongtermsite
surveillance.75Further,itisrequiredthatsitespecificsurveillanceandanyactivecontrol
requirementsbeanalyzedtodetermineifcostslikelywillbegreaterthanthoseassumedin
Criterion12(e.g.,noactivemaintenance)and,inanysuchcase,theCommissionmayrequire
anincreaseinfundingrequirementstoaddresssuchcosts.Theneedtoadjustthefunding
annuallyforinflationisreiteratedandthetotalamountforfundingoflongtermsurveillance
mustbeadequatetakingintoaccountanestimatedone(1)percentrealinterestrate.

Criterion11beginsthediscussionofsiteandbyproductmaterialownershipandapplies
toalllicensesterminated,issued,orrenewedafterNovember8,1981.Anyuraniumorthorium
milllicensemustcontainCommissionapprovedrequirementsthatensurethelicensees
compliancewithownershiprequirementsinthisCriterion.Titletobyproductmaterialandthe
landonwhichitislocatedmustbetransferredeithertotheUnitedStates(i.e.,DOE)ortothe
residentStateinwhichthesiteislocatedattheStatesoption.DOEownershipislikelyanda
licenseemustmakeseriouseffortstomaintainsubsurfacerights(i.e.,mineralrights)sothat
theprimarygoalofgeographicisolationoftailingscanbeachieved.Alicenseemustprovide
noticeinpubliclandrecordsthatthelandwillbeusedforradioactivematerialdisposalandthat
itwillbesubjecttogeneralorspecificNRCguidelinesregardingsuchactivity.Anymaterial
and/orlandtransferredtotheUnitedStatesoraStatemustbedoneatnocosttothat
governmentotherthanapplicableadministrativeandlegaltransfercostsand,ifthe
Commissiondeterminesthatuseofthesurfaceorsubsurfacepartsofthelandwillendanger
thepublichealth,safetyortheenvironment,thenuseofthelandinaccordancewithprovisions
providedinAppendixAispermitted.TheseprovisionsdonotapplytolandtheUnitedStates
holdsintrustforIndiantribesorlandownedbysuchIndiantribessubjecttoaUnitedStates
restrictionagainstalienation.

Criterion12requiresthatongoingactivemaintenanceshouldnotbenecessaryto
preserveisolationofthetailingsafterfinaldisposition.Annualsiteinspectionsshouldbe
conductedtoconfirmtheintegrityofthesiteandthepotentialnecessityofanymaintenance.
TheCommissionmayapprovemorefrequentinspectionsbasedonthesitespecific
characteristics.

Criterion13containsEPAsRCRAhazardousconstituentslistwithwhichthesecondary
groundwaterstandardsdiscussedinCriterion5mustcomply.Thelistofhazardousconstituents
showninthisCriterionarenotconsideredexhaustiveandanyotherprospectivehazardous
constituentsmustbeevaluatedonacasebycasebasisindependentofEPAslistingin40CFR
Part192.

75
Criterion10directlyaddressestherequirementinSection83(b)(7)oftheAEA,asamended,that
requires11e.(2)byproductmaterialsitesbetransferredtotheUnitedStatesortheStateatnocostto
thegovernment.See42U.S.C.2113(b)(7).

25


UnderUMTRCA,DOEisdesignatedastheprimaryresponsiblepartyforlong
termsurveillanceandmonitoringofall11e.(2)byproductmaterialandtheland(s)onwhich
suchmaterialisdeposited.UnderSection83oftheAEA,asamended,asstatedabove,
Congressmandatedthattitletoall11e.(2)byproductmaterialandtheland(s)onwhichsuch
materialisdepositedbetransferredtoeither(1)theUnitedStatesor(2)theStateinwhich
suchmaterialisdeposited.76Ineachcasewhereamilltailingssitehasbeentransferredfor
longtermsurveillanceandmonitoring,thesitehasbeentransferredtoDOEasStates
(specificallyincludingWyoming)generallydonotwishtoavailthemselvesoftheopportunityto
taketitletosuchsites.

Asaresult,inJanuaryof1998,DOE,inconjunctionwithNRC,generatedaprotocolfor
thetransferandlicensingofmilltailingssitestoDOEforlongtermsurveillanceandmonitoring
followingsiteclosureandlicensetermination.ThisWorkingProtocolofLongTermLicensingof
CommercialUraniumMills(NRC/DOEWorkingProtocol)setsforthanumberofprinciplesfor
NRCandDOEtofollowinaffectingthetransferofthesesites.Forexample,theProtocol
specifiesthatNRCwillrequirecurrentlicenseestodemonstratethatallapplicableNRC
requirementshavebeenmetbeforetheCommissionwillterminatecurrentlicenses.In
addition,theProtocolprovidesthatNRCwillnotterminateanysitespecificlicenseuntilthe
sitelicenseehasdemonstratedthatallissueswithstateregulatoryauthoritieshavebeen
resolved.77

Asageneralproposition,regardlessofwhetheramilltailingsfacilityislocatedinan
AgreementofnonAgreementState,theCommissionhasthefinalsignoffonwhethersite
closureandlicenseterminationisappropriate.78Asaresult,theCommissionhasgenerally
requiredthatDOEbeinformedofthestatusofmilltailingssitesdestinedforsiteclosureand
licenseterminationandthatDOEconcurwithallproposedsitespecificissuessuchas
groundwatercontainmentandmonitoring,institutionalcontrols,andengineeredbarriers.
Licenseeshavemaintained,however,thatthisconcurrencerequirementismerelyinter
agencycourtesy,asanyfinalNRCdecisionregardingfinalsiteclosureisbindingonDOE.

Whenan11e.(2)byproductmaterialsitehassatisfieditsCommissionapproved
reclamationplan,pursuantto10CFR40.51,thelicenseeisthenrequiredtotransfertitletoall
11e.(2)byproductmaterialandthelandswithinthelongtermsurveillancesiteboundaryto
DOEortheStateinwhichthesiteislocated.79Thistransfermustbecompletedatnocostto
thegovernment(i.e.,federalorstategovernment)andmustbeaccompaniedbyatransferof
fundsequaltotheamountprescribedinAppendixA,Criterion10ortoanotheramount

76
42U.S.C.2113(b)(1)(A).
77
SeeUnitedStateNuclearRegulatoryCommission,LicenseTermination/SiteTransferProtocolBetween
theU.S.DepartmentofEnergyandtheU.S.NuclearRegulatoryCommission(1998)(hereinafterExhibit
32).
78
Id.
79
10CFR40.51(b)(Exhibit61).

26

designatedbyNRC.Atthetimeoftransfer,asrequiredby10CFR40.51(c),DOEortheState
willpossessthesiteasalicenseeofNRCinperpetuityandsubjecttoallappropriatesite
specificlicenseconditions,asimposedbytheCommission.80

11e.(2)byproductmaterialalsoisverydifferentfromsourcematerialwithrespectto
themannerinwhichitwillbelicensedasastandaloneAEAmaterial.Whilesourcematerialis
licensedbyNRCunder10CFR40.13and40.22usingatwotieredmodeltodetermineifa
specificlicenseisrequired(i.e.,unimportantquantitiesunderPart40.13andgeneraland
specificlicensesunderPart40.22),NRChasdeterminedthatall11e.(2)byproductmaterial,
regardlessofquantity,requiresaspecificNRClicenseforpossessionanduse.In1993,when
NRCoperatedauraniumrecoveryfieldoffice(URFO)inColoradoforallnonAgreementState
sourcematerialrecoverylicensees,theURFODirectorRamonHallissuedaletterinresponseto
aninquiryfromindustryregardingthelicensingof11e.(2)byproductmaterial.Thisletter
responseessentiallyconcludedthatthereisnodeminimisquantityof11e.(2)byproduct
material.81Thus,NRCrequiresthatanygeneratororpossessorof11e.(2)byproductmaterial
musthaveanNRCspecificlicenseforsuchmaterialunder10CFRPart40.

Basedonthisdetermination,therearetwotypesofgenerators/possessorsof11e.(2)
byproductmaterial.Thefirstandmosteasilyidentifiedtypeofgenerator/possessorof11e.(2)
byproductmaterialisasourcematerialrecoveryentity.Theseentitiesgenerate11e.(2)
byproductmaterialthroughtheconductofsourcematerialrecoveryoperationsunderSection
11(z)oftheAEAandtypicallypossessanddisposeofthe11e.(2)byproductmaterialatthe
licensedsitein11e.(2)tailingsimpoundments(conventionalandheapleachoperators)or
possessandthentransfer11e.(2)materialfordisposaltolicensed11e.(2)disposalsites(ISR
operators).Thelicensesoughtandobtainedbytheseoperatorstypicallyisreferredtoas
combinedsourceand11e.(2)byproductmaterialorsourcematerialmilling(recovery)licenses
andcarrieswithit11e.(2)byproductmaterialpossessionauthority.Thesegeneratorsdonot
applyforseparate11e.(2)byproductmateriallicenses.

Thesecondtypeofgenerator/possessorof11e.(2)byproductmaterialaffectedbythis
NRCdeterminationisentitiesthatonlypossess11e.(2)byproductmaterialbutdonotgenerate
suchmaterialthroughtheprocessofsourcematerialrecovery.Theseentitiesinclude
laboratoriestestingsamplesof11e.(2)byproductmaterialforuraniumrecoveryproducersand,
potentially,otherlicensees.Giventhatthereisnodeminimisquantityof11e.(2)byproduct
material,eachentitypossessinganyamountof11e.(2)byproductmaterialmusthaveaspecific
license.



80
10CFR40.51(c)(Exhibit61).
81
SeeUnitedStatesNuclearRegulatoryCommission,LetterfromRamonHall,DirectorUranium
RecoveryFieldOffice,toUraniumRecoveryLicensees(October5,1993)(hereinafterExhibit33).

27

iii. OTHERSOURCEMATERIALRECOVERYREGULATORYPROGRAMS

Inadditiontotherobuststatutory/regulatoryprogramforsourcematerialrecovery
enactedandpromulgatedundertheAEA,thereareseveralotherstatutory/regulatoryregimes
thatarerelevanttoaspectsofsourcematerialrecoveryfacilities.Forpurposesofthis
feasibilitystudy,wewillconfineouranalysistothefollowingitems:(1)EPAsSDWAstatutory
andregulatoryauthorityoverISRfacilitiesthroughitsaquiferexemptionsandUICpermitsand
(2)EPAsCAAregulationsforradonemissionsfromtailingsimpoundments.

a. EPAsSAFEDRINKINGWATERACTREGULATIONS

ToassuresafeandeffectiveundergroundinjectionthroughouttheUnitedStates,in
1974,theUnitedStatesCongressenactedtheSafeDrinkingWaterAct(SDWA),82which,inpart,
authorizedestablishmentofanundergroundinjectioncontrol(UIC)programsothatinjection
wellswouldnotendangercurrentandfutureundergroundsourcesofdrinkingwater(USDW).
TheSDWAempoweredtheEPAwiththeprimaryauthoritytoregulateundergroundinjectionto
protectcurrentandfuturesourcesofdrinkingwater.EPAalsowasauthorizedtoprovideStates
withtheopportunitytoassumeprimaryauthorityoverUICprogramsinaccordancewithfinal
regulationspromulgatedbyEPAin1980,whichsetminimumstandardsforStateprogramsto
meettobedelegatedprimaryenforcementresponsibility(i.e.,primacy)oversuchprograms.83
UICregulationsestablishspecificperformancecriteriaforeachwellclass(ISRinjectionand
productionwellsgenerallyareClassIIIwells)toassurethatdrinkingwatersources,actualand
potential,arenotrenderedunfitforsuchusebyundergroundinjectionofthefluidscommonto
thatparticularclassofwells.

Between1981and1996,EPAgrantedprimacyto34Statesforallinjectionwells(except
thoseonTriballands).EPAimplementstheUICprogramdirectlyin10Statesandshares
responsibilityinsix(6)otherStates.WyominghasprimacyfortheUICprogram,soWDEQ
directlyimplementsUICprogramsforallclassesofwellsforaproposedISRprojectintheState.
Unlessauthorizedbyruleorbypermit,anyundergroundinjectionisunlawfulandisinviolation
oftheSDWAandUICregulations.

BeforeNRClicensedISRoperationscancommenceatanyproposedISRsite,anISR
operatormusthaveobtainedtwoauthorizations:(1)anaquiferexemptionfortheaquiferor
portionoftheaquiferwhereinISRoperationswilloccurand(2)aUICpermit.Underground
injectionisbroadlydefinedasthetechnologyofplacingfluidsundergroundinporous
formationsofrocksthroughwellsorothersimilarconveyancesystems.Thus,allISRinjection
wellactivitiesrequiretheserelevantauthorizations.

82
WhileNRCdoesnothavejurisdictionovermatterscoveredbyWyomingsprimacymandateunder
theSDWAanditsUICprogram,itisimportanttounderstandthecomprehensive,andoftenredundant,
regulatoryprogramsapplicabletoISRoperations.
83
See42U.S.C.300h(1)(2005)(hereinafterExhibit34).

28

Asnotedabove,EPAsUICprogramwascreatedtoprotectcurrentorfutureUSDWs.A
USDWisdefinedasanaquifer,orportionthereof,whichservesasasourceofdrinkingwater
forhumanconsumption,orcontainsasufficientquantityofwatertosupplyapublicwater
system,andcontainsfewerthan10,000mg/literoftotaldissolvedsolids(TDS).Thebroad
definitionofaUSDWwasmandatedbyCongressinSection1421(d)(2)84oftheSDWAtoensure
thatfutureUSDWswouldbeprotected,evenwherethoseaquiferswerenotcurrentlybeing
utilizedasadrinkingwatersourceorcouldnotbeusedwithoutsomeformofwatertreatment.

Withinthisregulatoryframework,however,someaquifersorportionsofaquifers,
whichcanmeetthebroadregulatorydefinitionofaUSDW,cannotreasonablybeexpectedto
serveasacurrentorfuturesourceofdrinkingwater.Asaresult,theUICprogramregulations
allowEPAtoexemptportionsofanaquiferfromdelineationasaUSDWandallowforinjection
intosuchaquifersorportionsthereof.EPAregulationsat40CFR146.4specificallystate:

Anaquiferoraportionthereofwhichmeetsthecriteriaforanunderground
sourceofdrinkingwaterin146.3maybedeterminedunder40CFR144.8
tobeanexemptedaquiferifitmeetsthefollowingcriteria:

a. Itdoesnotcurrentlyserveasasourceofdrinkingwater;and
b. Itcannotnowandwillnotinthefutureserveasasourceofdrinking
water;or
c. Thetotaldissolvedsolidscontentofthegroundwateraremorethan
3,000andlessthan10,000mg/Landitisnotreasonablyexpectedto
supplyapublicwatersystem.85

AccordingtoEPA,aquifersmeetingthesecriteriagenerallyareassociatedwithinsitumineral
recoveryandenhancedoilrecovery.Ifanoperator,licenseeorpermitteewishestoinjectinto
aUSDWforthepurposeofrecoveringminerals(e.g.,uranium),ademonstrationmustbemade
thattheproposedaquifermeetsatleastoneoftheexemptioncriterianotedabove.EPAhas
issuedguidanceonthestandardsthatmustbesatisfiedtoqualifyforanaquiferexemption.To
thebestofThompson&Pugsley,PLLCsknowledge,thereisnoprovisionintheSDWA
authorizingrevocationofanaquiferexemptiongrantedpursuantto40CFR144.8,norhas
EPApromulgatedregulationsestablishingcriteriaforrevocationofanaquiferexemptionnor
hasiteveractuallyrevokedsuchanexemption.

Inaddition,itisnotablethatEPAsSDWAUICregulationsdonotrequirepostoperation
groundwaterrestorationforexemptedaquifers,becausesuchexemptedaquiferswillnotbe
usedasadrinkingwatersourceatanytimebefore,duringorafterISRoperationsarecomplete.
However,asdescribedin40CFR146.7,EPAsUICregulationsdorequirecorrective
action/remediationforanycontaminationofadjacent,nonexemptaquifersinaccordancewith
thepurposeoftheSDWAandtheUICprogramwhichistoprotectUSDWs.

84
See42U.S.C.300h(b)(1)(2005)(Exhibit34).
85
See40CFR146.4(2010)(emphasisadded).

29

Withrespecttoaquiferexemptions,aStateisnotgrantedprimacy(functional
equivalentofAgreementStatestatusundertheAEA)tounilaterallygrantsuchexemptions.
Thisisthecase,becausetheSDWAspecificallycreatedStateprogramswhere,uponpassageof
thestatutein1974,Statedirectorswererequiredtosubmitarosterofaquiferstobeexempted
goingforward.Afterthatrosterwassubmittedandapproved,Statedirectorswererequiredto
receiveapplicationsfromprospectivepermitteesandthenapplytoEPAforanamendmentto
theexistingStateprogram.However,thisregulatoryprocessislargelystandardizedandeasily
understood.Currently,theStateofWyomingfoldsitsaquiferexemptionapplicationintopart
ofitsPermittoMineprocess.

ToobtainaUICpermitforanewClassIIIwell(injectionwellslocatedinagivenwellfield
andnotproductionwells)oraClassIdeepdisposalwell,theowner/operatororpermittee
mustfileanapplicationwiththeUICDirectorfortherelevantjurisdictioncontainingspecific
informationlistedin40CFRPart146orinapplicableStaterequirements.OnceaUICpermit
applicationhasbeenreviewed,theapplicantwillbenotifiedoftheitemsneededtocomplete
theapplication,ifany.Afteracompleteapplicationisreceived,aninitialdecisiontograntor
denythepermitisissued.UICregulationsalsoprovideopportunitiesforpublicparticipation
andcomment.

AUICpermitforeachsiteisanecessaryprerequisitefortheoperationofanyISR
project.Suchapermitnecessarilyassumesthattheaquiferorportionthereoftobeusedfor
undergroundinjectioncannotnoworinthefuturebeusedasaUSDW.Withoutthis
fundamentalassumptionbeingreflectedinanaquiferexemption,aUICpermitforISR
operationswillnotbeissued.

Thus,EPAsUICprogramspecificallyrecognizesthatmanyaquifersorportionsthereof
cannotnoworeverinthefutureserveasviableUSDWs.Inmanycases,thecontaminationin
suchwatersourcesiscreatedbythepresenceofhighconcentrationsofminerals(e.g.,
uranium)thatmayberecoveredusingundergroundinjectionmethods.Assuch,theUIC
programprovidesforaquiferexemptions,whichmustbeobtainedpriortothecommencement
ofundergroundinjectionforthepurposesofISRoperations.

Although,asnotedabove,EPAsUICregulationsdonotrequiregroundwaterrestoration
inexemptedaquifers,WyomingsUICregulationsandNRCsAppendixACriteriarequire
restorationofISRrecoveryzonegroundwater(exemptedaquifergroundwater)consistentwith
preoperationalorbaselinewaterqualityoramaximumcontaminantlevel(MCL)prescribedfor
givenconstituentsundertheSDWA,whicheverishigher,oranalternateconcentrationlimit
(ACL).Theserestorationstandardsarenotintendedtocreateanewdrinkingwatersource
withinthedesignatedrecoveryzone;butrather,areintendedtominimizeoreliminatethe
potentialforpostrestorationmigrationofrecoverysolutionsfromtheexemptedaquiferto
adjacent,nonexemptaquifers,orportionsthereof.

WithrespecttoUICpermits,theStateofWyomingmaintainsaUICprogramwith
primacyfromEPAtoreceiveandapproveapplicationsforallUICwellclasses(I,II,III,IV,andV).

30

MaintenanceofprimacystatusiscontingentuponongoingEPAapprovalthattheStates
regulatoryprogramisatleastasstringentasEPAs.Asstatedabove,unlikeEPAsUIC
regulations,theStatesUICregulationsmandategroundwaterrestorationforISRfacilities.
Typically,theStatesapproachtorestorationisthatitshouldbecompletetopremining
backgroundlevelsor,intheeventthoselevelscannotbereached,topriorclassofuse.
Currently,classofusecanonlyserveasoneofthejustificationsforanACLatNRC.

b. EPAsCLEANAIRACTREGULATIONSFORRADONEMISSIONSFROMSOURCE
MATERIALMILLTAILINGSIMPOUNDMENTS

Anotherregulatoryregimethatisapplicabletosourcematerialrecoveryfacilitiesis
EPAsCAAregulationsat40CFRPart61,SubpartWentitledNationalEmissionsStandardsfor
RadonEmissionsfromOperatingMillTailings.InadditiontotheauthorityvestedinEPAunder
UMTRCA,CongressgrantedEPAadditionalauthoritytoregulatecertainaspectsofuranium
recoveryfacilities.In1977,CongressenactedtheCAAunderwhichEPAwasdirectedto
addresspotentiallyhazardousradiologicalairemissionsatavarietyoffacilities,including
uraniummills.InresponsetothisstatutorymandateandpursuanttoSection112oftheCAA,
EPApromulgated40CFRPart61toaddressradiologicalairemissionsfromsuchfacilities.

40CFRPart61,SubpartTNationalEmissionStandardsforRadonEmissionsfromthe
DisposalofUraniumMillTailingswerepromulgatedbyEPAtoaddresspotentialhazardousair
pollutants(e.g.,includingradon)(particulateemissionswereaddressedeffectivelyunder40
CFRPart190fuelcycleregulations)atmilltailingsfacilitiesregulatedunderTitleIIofUMTRCA,
whichwerenolongeroperational.SubpartTstated,inpertinentpart:

Radon222emissionstotheambientairfromuraniummilltailings
pilethatarenolongeroperationalshallnotexceed20pCi/(m2sec)
(1.9pCi/(ft2sec))ofradon222.

Subsequently,afterchallengestoSubpartTwerefiledintheUnitedStatesCourtofAppealsfor
theDistrictofColumbiaCircuit(D.C.Circuit),SubpartTwasthesubjectofsettlement
discussionsbetweenAMC(nowNMA),EPA,NRC,andenvironmentalgroups,withNRCand
AgreementStatesmonitoringasinterested,butnotlitigating,parties.Thesenegotiations
ultimatelyledtoNRCrevisingitsmilltailingsregulationstorequirelicenseestoachieve
enforceablemilestonesleadingtoacceleratedplacementofradonbarriersatnon
operational(i.e.,nolongeractivelymillingoronstandby)TitleIImilltailingsdisposalsites86to
satisfyEPAsandtheenvironmentalgroupsconcernsthatthepotentialthreatfromradon
emissionsbeaddressedbythepromptplacementofradonbarriersoverdisposalareas.87After

86
59Fed.Reg.28,220(1994)(hereinafterExhibit35).
87
EPAwasclearlyconcernedwithpromptplacementofradonbarriersovertailingspilesandEPA,thus,
indicatedthattheprimarypurposeofthesettlementwas:
toensurethatownersofuraniummilltailingsdisposalsites...bringthosepilesinto

31

NRCfinalizeditsrevisionsto10CFRPart40,AppendixAinaccordancewiththissettlement,
EPArescindedSubpartTofits40CFRPart61regulationsand,assuch,itsrequirementsno
longerapplytooperatinguraniummills.88

40CFRPart61,SubpartWentitledNationalEmissionStandardsforRadonEmissions
fromOperatingMillTailingswaspromulgatedtoaddressradonemissionsatactive(including
standby)uraniummilltailingsfacilities.Thus,SubpartWappliestooperatorsofuraniummill
tailingsfacilitieswhiletheyareprocessinguranium/thoriumoresandcreating11e.(2)
byproductmaterial:

Theprovisionsofthissubpartapplytoownersoroperatorsoffacilities
licensedtomanageuraniumbyproductmaterialsduringandfollowingtheprocessingof
uraniumores,commonlyreferredtoasuraniummillsandtheirassociatedtailings.This
subpartdoesnotapplytothedisposaloftailings.

NewtailingsimpoundmentsconstructedafterDecember15,1989mustcomplywith
oneoftwoworkpracticestandards:89(1)phaseddisposalinlinedimpoundmentsofforty(40)
acresandmeettherequirementsof40CFR192.32(a)withnomorethantwoimpoundments
inoperationatonetime;or(2)continuousdisposaloftailingsthataredewateredand
immediatelydisposedofwithnomorethantenacresuncoveredatonetime.90Compliance
withtheseworkpracticestandardsinSubpartWmakesthemeasurementforradon
emanationsduringactiveoperationsunnecessary,however,EPAsradonmeasurementMethod
115doesrequiremeasurementofthedifferentregionsoftailingsdisposalfacilitiesexcept
thosecoveredbywater.91



compliancewiththe20pCi/m2sfluxstandardasexpeditiouslyaspracticableconsidering
technologicalfeasibility...withthegoalthatallcurrentdisposalsitesbeclosedandin
compliancewiththeradonemissionstandardbytheendof1997,orwithinsevenyears
ofthedateonwhichexistingoperationsandstandbysitesenterdisposalstatus.
59Fed.Reg.36,280,36,282(1994)(hereinafterExhibit36).
88
See61Fed.Reg.68972(December30,1996)(emphasisadded)(hereinafterExhibit37).
89
40CFR61.252(a)(2007).
90
Itisobviousthatthecontinuousdisposalworkpracticestandardcannotapplytoevaporation/storage
ponds,sinceitrequiresdewateringandsoilcover.
91
TheResponsetoCommentstoEPAsFinalRuleonradon222emissionsfromlicensedmilltailings
demonstratesthatEPAconsideredanemissionstandardanddeterminedthatboundariescouldbe
changedtocomplywithanemissionstandardwhichisnotanacceptablepracticeundertheCleanAir
Act.Also,methodstodetermineemissionsfromtailingspilesalsohavenotbeensufficientlydeveloped
toprovideaccurateandconsistentmeasurementsofradonemissions.UnitedStatesEnvironmental
ProtectionAgency,OfficeofRadiationPrograms,FinalRuleforRadon222EmissionsfromLicensed
UraniumMillTailings,ResponsetoComments(August,1986)(hereinafterExhibit38).

32

B. ORIGINSOFDUALJURISDICTIONISSUES

AsdescribedintheEnrolledAct,Section1(b),theprimarypurposeofthefeasibility
studyistoidentifyexistingdualjurisdictionissuesandtodevelopinformationandanalysesto
developanapproachforobtainingNRCAgreementStatestatustoeliminatesuchissuesshould
theStatedeterminetodoso.Theprimarysourceofthesedualjurisdictionissuescomesfrom
theexclusive,federalpreemptivejurisdictiongrantedtoNRCbyCongressoverAEAmaterials
andoperationsandthesubsequentlegalandpolicydeterminationsmadebyNRCinfurther
developmentofitssourcematerialrecoveryprogram.

WhenenactingUMTRCA,Congressintendedthat11e.(2)byproductmaterialbe
regulatedunderauniformregulatoryregimebyNRC/AgreementStatesandconsistentwith
generallyapplicablestandardspromulgatedbyEPA.However,therewasnolanguagein
UMTRCAthatexpresslygrantedpreemptiveregulatoryauthorityoverboththeradiologicaland
nonradiologicalaspectsofsuchmaterialtoEPA/NRC.Thus,inAprilof1980,NRCsOfficeof
theExecutiveLegalDirector(OELD)issuedanadvisoryopinionaddressingthequestionof
whether,andtowhatextent,federallawpreemptsnonAgreementStateauthorityoverthe
nonradiologicalaspectsof11e.(2)byproductmaterial.Inreachingthisconclusion,OELD
conceded:

[W]econcludethatthequestionissoclosethattheCommissioncouldreasonably
chooseeitherinterpretation,butthatthebetterlegalviewis
thatnonAgreementStatesandtheNRChaveconcurrentjurisdictionto
regulatethenonradiologicalhazardsofmilltailings,bothbeforeand
aftertheNovember8,1981dateuponwhichtheMillTailingsActbecomes
fullyeffective.92

Thus,despitethefactthattheargumentsfavoringfederalpreemptionwerepersuasive,OELD
concludedthatnonAgreementStatescouldexerciseconcurrentjurisdictionoverthenon
radiologicalaspectsof11e.(2)byproductmaterial.93

OELDsadvisoryopinionpresentedsignificantpotentialregulatoryproblemsforuranium
recoverylicensees(e.g.,theNRC/DOEWorkingProtocolrequirementtoresolveallissueswith

92
MemorandumfromHowardK.Shapar,ExecutiveLegalDirector,NRC,toChairmanAhearne.NRC,
OELDLegalOpiniononTwoQuestionsRelatingtotheOperationoftheUraniumMillTailingsRadiation
ControlActof1978,AttachmentB,23(April28,1980)(emphasisadded)(hereinafterExhibit39).
93
NRCslegalstaffsubsequentlyreaffirmedthispositioninaletterdatedOctober28,1993tothe
AttorneyGeneraloftheStateofWyoming.SeeLetterfromWilliamL.Brown,RegionalCounsel,NRC,to
MikeBarrish,SeniorAssistantAttorneyGeneral,StateofWyoming(October28,1993).Interestingly,
theAttorneyGeneralofWyomingconcludedin1971thatUMTRCApreemptedStateregulationofboth
radiologicalandnonradiologicalhazardsassociatedwithmilltailings.SeeMemorandumfromJohnD.
Troughton,AttorneyGeneral,StateofWyoming,toEdHerschler,Governor,StateofWyoming
(December1,1979)(emphasisadded)(hereinafterExhibit40).

33

Stateregulatoryauthorities).Asaresult,NMAs1997WhitePaper94presentedadetailed
analysisarguingthattheadvisoryopinionsconclusionwasincorrectandwasnotaclose
questioninlightofthethencurrentregulatoryenvironment.NMAassertedthat,whenviewing
thethencurrentUMTRCAbasedregulatoryenvironment,thefederalschemesetoutbythe
statutesatisfiedtwoseparatetestsestablishedbytheSupremeCourt,eitheroneofwhich
wouldbesufficienttodemonstratefederalpreemptionwithrespecttothenonradiological
aspectsof11e.(2)byproductmaterial.

Brieflystated,accordingtothefederalpreemptiondoctrine,theSupremacyClauseof
theUnitedStatesConstitutionelevatesfederallawabovethelawsoftheindividualstatesby
declaringfederallawtobethesupremelawoftheland.95TheUnitedStatesSupremeCourt
hasidentifiedthreedifferentcircumstancesunderwhichStatelawwillbepreempted.First,
StateauthoritywillbepreemptedincaseswhereCongressexpresslyindicates,inthelanguage
ofastatute,itsintenttodisplaceStateregulationinagivenarea.96Second,evenifCongress
failstoexpresslysignalitsintenttopreemptStatelaw,suchintentmaybeimpliedfroma
schemeoffederalregulationthatissopervasiveastomakereasonabletheinferencethat
Congress[intendedtoleave]noroomfortheStatesto[augment]it.97Congressintentto
displaceStatelawalsowillbeimpliedininstanceswherefederallawtouchesuponanareain
whichthefederalinterestissodominantthatthefederalsystemwillbeassumedtopreclude
enforcementofstatelaws.98Finally,thecourtshaveheldthatStatelawwillbepreempted
totheextentthatitactuallyconflictswithfederallaw:ifitis[physically]impossibletocomply
withbothlawsorwhereastatelawstandsasanobstacletoaccomplishmentandexecutionof
thefullpurposesandobjectivesofCongress,99Statelawwillbepreempted.

Addressingthesedoctrines,NMAfirstarguedthattheAEA,asamendedbyUMTRCA,
establishesapervasivefederalschemefortheregulationofuraniummilltailingsandtheir

94
NationalMiningAssociation,RecommendationsforaCoordinatedApproachtoregulatingtheUranium
RecoveryIndustry,(1997).
95
U.S.Constitution,ArticleVI,clause2(hereinafterExhibit41).
96
Seee.g.,Englishv.GeneralElectricCo.,496U.S.72,7879(1990)(hereinafterExhibit42);PacificGas
&ElectricCo.v.StateEnergyResourcesConservationandDevelopmentCommn,461U.S.190,203
(1983).
97
Englishv.GeneralElectric,Co.,496U.S.at79(emphasisadded).
98
Id.
99
Id.(emphasisadded).Statecourtsalsohaverecognizedpreemptionwherethereisaserious
incompatibilitybetweenStateandfederallaws.InHermesConsolidated,Inc.v.Illinois,849P.2d1302
(Wyo.1993),theSupremeCourtofWyomingheldthatafederalconsentdecreeenteredintounder
RCRApreemptedthehazardouswasteremediationplanissuedbytheStateDepartmentof
EnvironmentalQualityandnoted:
IfCongresshasnotentirelydisplacedstateregulationoverthematterin
question,statelawisstillpreemptedtotheextentitactuallyconflictswith
federallaw,thatiswherethestatelawstandsasanobstacletothe
accomplishmentofthefullpurposesandobjectivesofCongress.
Hermesat1306(emphasisadded)(hereinafterExhibit43).

34

relatedwastes(i.e.,11e.(2)byproductmaterial).Asdiscussedabove,nolessthanthreefederal
agenciesplayanactiveroleinregulatingmilltailings.PursuanttoSection275oftheAEA,as
amended,EPAhasissueddetailed,generallyapplicablestandardstoaddressbothradiological
andnonradiologicalhazardsassociatedwith11e.(2)byproductmaterial.Thestandardsfor
potentialnonradiologicalhazardsareliftedfromEPAsRCRAregulations.Inturn,NRChas
incorporatedtheseregulationsintoitscriteriaforthemanagement,closure,andlongterm
monitoringofmilltailingssites,assetoutin10CFRPart40,AppendixA.UnderUMTRCA,NRC
oranAgreementStatehastheresponsibilityforimplementationandenforcementofallAEA
requirementsapplicabletoactiveuraniummilltailingssitesandfinaldisposalofthetailings
themselves.Indeed,withrespecttofinaldisposalandlicenseterminationofanactiveuranium
recoverysite,anyAgreementStatedecisiontoterminatealicensemustbeapprovedbythe
CommissionpursuanttoSection274(c)oftheAEA.Finally,thusfar,DOEcompletesthefederal
oversightcircleof11e.(2)byproductmaterialbybecomingthepermanentlongterm
custodianandperpetuallicenseeofsitesusedforthedisposalofsuchwastesunderTitleIIof
UMTRCA,aswellasexercisingprimaryresponsibilityforselectingandoverseeingthe
remediationofinactiveuraniummilltailingssitesandpermanentcustodianshipthereofunder
TitleIofUMTRCA.

TheOELDopinionwasissuedatatimewhenthefederalregulatoryprogramgoverning
uraniummilltailingsandtheirrelatedwasteswasinitsinfancy.Atthatparticulartime,the
rolesofthefederalagencies(i.e.,EPA,NRC,andDOE)assignedunderUMTRCAinimplementing
thestatutoryregimehadnotyetbeendevelopedinregulations.Inaddition,itappearedatthe
timethattheradiologicalhazards(e.g.,radonemissions)associatedwiththosetailingsand
wasteswouldbetheprimaryfocusofregulatoryconcern(e.g.,notethatinitiallybothEPAs
inactivesiteandNRCsactivesiteregulationsaddressedgroundwateronlyonasitebysite
basis).Indeed,theOELDcitedthisapparentfocusonradiologicalhazardsassupportingthe
conclusionthatfederalregulationofmilltailingspreemptednonAgreementStateregulation
onlywithrespecttotheradiologicalaspectsof11e.(2)byproductmaterial.However,overthe
nearlytwentyyearssincetheOELDopinionwaswritten,NMAarguedtheregulatoryscheme
setoutinUMTRCAhaddevelopedintoarobustandcomprehensivefederalprogramthat
activelyregulatesbothradiologicalandnonradiologicalcomponentsof11e.(2)byproduct
material,fromthepointofgenerationthroughtoultimatedisposition.Thepervasivenessof
thisfederalregimeindicatesthatCongressdidnotintendtoallownonAgreementStatesto
exerciseconcurrentjurisdictionovereithertheradiologicalorthenonradiologicalaspectsof
11e.(2)byproductmaterial.

Second,NMAarguedthattheexerciseofconcurrentjurisdictionover11e.(2)byproduct
materialconflictswithfederallaw,becauseitisinconsistentwiththeoverallstatutoryscheme
createdbytheAEA,asamendedbyUMTRCA,anditfrustratesCongresspurposeinenacting
UMTRCAtograntNRCtheauthoritytoregulate11e.(2)byproductmaterial.Thisinconsistency
ismostevidentintheimpactofconcurrentjurisdictionontheAgreementStateprogram.
WhileAgreementStatesmustcarefullyconformtheirregulationofradiologicalandnon
radiologicalhazardsassociatedwith11e.(2)byproductmaterialtofederalstandards,as
requiredbySection274(o)oftheAEA,asamended,nonAgreementStateswouldbefreeto

35

regulate11e.(2)byproductmaterialwithoutanyregardtoconsistencywithfederalstandards.
Inotherwords,AgreementStatesthathavetocomplywithNRCrequirementstoachieveand
retaintheirAgreementStatestatushavelessauthority(atleastwithrespectto11e.(2)
byproductmaterial)thantheywouldotherwisehaveasnonAgreementStates.Sucharesult,
NMAargued,denigratesanddevaluestheAgreementStateprogram.

Similarly,theexerciseofconcurrentjurisdictionbynonAgreementStateswouldconflict
withtheroleestablishedforNRCunderSection84oftheAEA,whichdirectstheCommissionto
ensurethatthemanagementofany11e.(2)byproductmaterialiscarriedoutinamannerthat:

theCommissiondeemsappropriatetoprotectthepublichealthand
safetyandtheenvironmentfromradiologicalandnonradiological
hazardsassociatedwiththeprocessingandwiththepossessionand
transferofsuchmaterial,takingintoaccounttherisktothepublic
health,safety,andtheenvironment,withdueconsiderationofeconomic
costsandsuchotherfactorsastheCommissiondeemsappropriate.100

IfnonAgreementStatesareallowedtoexerciseconcurrentjurisdictionovernonradiological
aspectsof11e.(2)byproductmaterial,thennonAgreementStatescouldforcelicenseesto
performremedialactionsaboveandbeyondthoserequiredbyNRC,regardlessofthenetrisk,
costorenvironmentalimpactand,conceivably,evenafterterminationofthelicensegrantedby
NRC.101Underthispolicy,theCommissionwouldbeunabletoweightheimpactsofState
imposedactionswiththeotherfactorsmandatedforconsiderationbythestatute,thereby
leadingtoinappropriatemanagementof11e.(2)byproductmaterial,incontraventionof
Section84oftheAEA.

Finally,NMAarguedthattheexerciseofconcurrentjurisdictionwouldinterferewith
licenseterminationandfinalsiteclosureatTitleIIactiveuraniummilltailingssites.After
operatingformanyyearsunderfederalstandardsgoverningnonradiologicalhazardsand
havingimplementedgroundwatercorrectiveactionprogramsbasedonthosestandards,some
facilitieswerefacedwiththeprospectofhavingtocomplywithadditionalrequirements
imposedbytheState,whichtheWorkingProtocolwithDOEnotedabovehadmadeacondition

100
42U.S.C.2114(a)(1)(Exhibit21).
101
Indeed,potentialnonAgreementStateassertionsofregulatoryauthorityovernonradiological
constituentsafterlicenseterminationwereamatterofspecialconcerntoDOEasthelikelylongterm
custodian.Inparticular,DOEmightattempttorefrainfromtakingtitletosuchsitesbecauseofthe
possibilitythattheadditionalregulatoryburdensimposedbythenonAgreementStateafterlicense
termination,andtheeconomiccostsassociatedwiththoseregulatoryburdens,wouldconflictwiththe
directivecontainedinSection83oftheAEA,whichrequiresthatthetransferoftitletoDOEoccur
withoutcosttothegovernmentotherthanadministrativeandlegalcostsassociatedwiththetransfer
itself.Thisconcernwas,inpart,basedonthewaiverofsovereignimmunityundertheFederalFacilities
ComplianceActwithrespecttomanagementofhazardoussubstancesunderStatelawordelegated
authority.

36

ofsiteclosure.102Ifconcurrentjurisdictionwereexercised,NMAarguedthat,notonlywould
closurecostsincreasesubstantially,butlicensetermination,particularlyininstanceswherethe
Stateimposedrequirementsweretechnologicallyoreconomicallyinfeasible,couldbedelayed
orevendenied.NowhereinUMTRCAisthispotentialresultcontemplatedand,allegedly,this
resultalsowouldbeunacceptabletoNRC.Byimpedingfinalsiteclosureandlicense
termination,theexerciseofconcurrentjurisdictionbynonAgreementStateswouldfrustrate
oneoftheprimarygoalsunderlyingUMTRCA(i.e.,theorderly,timelyclosureandremediation
ofmilltailingssites).NMAnotedthatthiseffectwouldbegreatlyamplifiedbythelarge
numberofTitleIIsitesthatwerepreparingforfinalsiteclosure.

AfterreviewingNMAsanalysisregardingconcurrentjurisdictionover11e.(2)byproduct
material,onAugust11,2000,theCommissionheldthatanyregulationofthenonradiological
hazardsofAEAmaterialsbynonAgreementStatesisfederallypreempted.103Asstatedby
formerNRCChairmanRichardMeserveinhiscommentsontheissue,thereispervasive
evidencethatCongressintendedtoestablishacomprehensiveregulatoryregimeoverthenon
radiologicalhazardsofmilltailingsthatisexactlyparalleltotheNRCsjurisdictionover
radiologicalhazards.104ChairmanMeserve,notingthatthereisnoexplicitlanguagein
UMTRCAcallingforpreemptionofStateregulatoryauthority,citedtheSupremeCourts
decisioninPacificGas&ElectricCo.v.StateEnergyResourcesConservationandDevelopment
Commn105todemonstrateNRCspreemptiveauthorityovertheradiologicalsafetyaspectsof
theconstructionandoperationofnuclearpowerplants.Congress,whenenactingUMTRCA,
placedradiologicalandnonradiologicalhazardsonthesamefootingand,ChairmanMeserve
suggestedthatCongressintendedthesamesweepingfederalpreemptiontocoverbothtypes
ofhazards.106

Additionally,ChairmanMeservecitedtheUnitedStatesCourtofAppealsfortheDistrict
ofColumbiaCircuits(D.C.Circuits)decisionintheBrownv.KerrMcGeeChemicalCorp.caseas
supportforfederalpreemption.TheD.C.CircuitstatedthatUMTRCAwasenactedtoprovide

102
SeeExhibit32.
103
CommissionVotingRecord,SECY990277,ConcurrentJurisdictionofNonRadiologicalofUranium
MillTailings(August11,2000)(hereinafterExhibit44).
104
Id.(emphasisadded).
105
QuotingtheirdecisionsinFidelityFederalSavings&LoanAssnv.DelaCuestaandRicev.SantaFe
ElevatorCorp.,theCourtstatedthat:
Absentexplicitpreemptivelanguage,CongressintenttosupersedeStatelawaltogether
maybefoundfromaschemeoffederalregulationsopervasiveastomakereasonable
theinferencethatCongressleftnoroomfortheStatestosupplementit,becausetheActof
Congressmaytouchafieldinwhichthefederalinterestissodominantthatthefederal
systemwillbeassumedtoprecludeenforcementofStatelawsonthesamesubject,or
becausetheobjectsoughttobeobtainedbythefederallawandthecharacterofobligations
imposedbyitmayrevealthesamepurpose.
461U.S.190,203204(1982)(hereinafterExhibit45).
106
SeeUnitedStatesNuclearRegulatoryCommission,SECY99277,ConcurrentJurisdictionofNon
RadiologicalHazardsofUraniumMillTailingsat4(hereinafterExhibit46).

37

acomprehensiveremedialprogramforthesafestabilizationanddisposalofuraniumand
thoriummilltailings.107FurthercitingtheKerrMcGeecase,ChairmanMeservestatedthatit
waslogicalforCongresstolinkradiologicalandnonradiologicalhazardstogetherbecauseboth
hazardsarisefromthesamematerialandareinextricablyintermixed.108

AgreementStatesalsoaresubjectedtovariousconditionsandconstraintsontheir
AEA/UMTRCAregulatorypowerover11e.(2)byproductmaterial.Theyarerequiredtofollow
certainproceduresinlicensingcases,includingdetailedreportingrequirementsforpublic
hearingsandjudicialscrutiny.109ChairmanMeserveconcludedthatitwouldbeanomalousin
theextremeforCongresstorequireAgreementStatestocomplywiththesevarious
requirementsandconstraintsandyettoallownonAgreementStatestoregulatenon
radiologicalimpactswithoutanysuchlimitations.110ChairmanMeserve,withtwoother
Commissionersconcurring,concludedthatnonAgreementStatescannotexerciseconcurrent
jurisdictionoverthenonradiologicalhazardsassociatedwith11e.(2)byproductmaterial.

AftertheCommissionissueditsopinion,severalStatesassertedtheirdispleasurebut
didnottakeaffirmativeactiontochallengetheCommissionsdecision.TheStatesofWyoming,
Utah,andNewMexicoallvoicedtheirobjectionsandconcernstouraniumrecoverylicensees
andNRCStaff.WhiletheseStatesweremullingpotentiallegalchallengestotheCommissions
decision,inJuneof2001,NRCStaffnotifiedsuchStatesthat,innouncertainterms,NRC
preemptsStateauthorityoverthenonradiologicalcomponentsof11e.(2)byproductmaterial
andthattheStateswereexpectedtoacceptthedecision.

Insummary,NRCsrevisedpositiononconcurrentjurisdictionplaysacrucialroleforall
typesofsourcematerialrecoverysites(i.e.,conventionalmills,heapleachfacilities,andISR
sites).Byexercisingexclusiveregulatorycontroloverallcomponentsof11e.(2)byproduct
material,NRChasmadeclearthatthereisonesetofregulatorystandardsthatmustbe
followedandthatthereisnothreatofdualoroverlappingjurisdictionoversuchmaterial.
Further,NRChasalsodemonstratedthatitsauthoritycannotbesupersededbyEPAornon
AgreementStatesunderstatutessuchasRCRA,eventhoughtherearenonradiological
(hazardous)constituentsin11e.(2)byproductmaterial.Mostimportantly,italsopreventsnon
AgreementStatesfrominterferingbyrightinfinalsiteclosureandlicenseterminationdecisions
atactivesourcematerialrecoverysitesand,similarly,removesthethreatoftheirintervention
inDOElongtermsurveillanceandmonitoringactionsafterlicenseterminationatmilltailings
sites.111

107
903F.2d1,8(D.C.Cir.1990)(hereinafterExhibit47).
108
767F.2d1234,1241(7thCir.1985),cert.denied,175U.S.1066(1986)(emphasisadded)(hereinafter
Exhibit48).
109
See42U.S.C.2021(o).
110
CommissiondecisiononSECY990277at56(emphasisadded)(Exhibit46).
111
SeeWasteActionProjectv.DawnMiningCorp.,1998U.S.App.LEXIS4115(9thCir.,1998)(emphasis
added)(hereinafterExhibit50).Inthisopinion,theNinthCircuitheldthatEPAlackstheauthorityto
regulatethedischargeofbyproductmaterialintothenationswaterwaysundertheCleanWaterAct
(CWA),notingthat11e.(2)byproductmaterialwasexcludedfromthedefinitionofpollutantswithin

38

1. RECENTDUALJURISDICTIONISSUES

i. ASAPPLIEDAPPENDIXACRITERIATOISRFACILITIES

Withtheconcurrentjurisdictiondecisionintheyear2000nowpartofNRClegal
doctrine,thepastdecadehasseenthedevelopmentofnumerouslegalandpolicy
interpretationsofNRCssourcematerialrecoveryprogramthathavehadaprofoundeffecton
dualjurisdictionissues.First,inthesame1997WhitePaperpreparedbyNMAinwhichthe
concurrentjurisdictiondecisionfounditsorigin,theCommissionalsoconsideredthequestion
ofwhichentity(NRCorStates)possessedjurisdictionoversubsurfaceactivitiesinwellfieldsat
ISRsites.TheISRtechniqueinvolvessubsurfaceexplorationprocessessimilartothoseusedfor
conventionaluraniumrecovery.However,ratherthanusingsurfaceorunderground
excavationtechniques,ISRfacilitiesusesubsurfacewellfieldstobringuraniumtothesurfacein
solutionforproduction.Typically,eachwellfieldusuallyiscomposedofanumberoffive
spotpatternswhichinvolvetheinstallationoftwotypesofwellsinagivenorezone.Forthe
typicalfivespotpattern,theuraniumrecoveryoperatorinstallsfourinjectionwellstoinject
intothemineralizedorezoneasolutionknownaslixiviant.Thislixivianttypicallyconsistsof
groundwatercontainingdissolvedoxygenandcarbondioxideandhassimilarphysicaland
chemicalcharacteristicstoclubsoda.Atthesametime,asingleproductionwelllocatedatthe
centerofthefivespotpatterndrawslixiviantthroughthemineralizedorezone.Ineachwell
field,theseinjectionandproductionwellscreateacircuitthatcontinuouslyinjectsnative
groundwaterintoanddrawssuchwaterthroughtheorezone,oxidizinganddissolvinguranium,
tobringittothesurface.Whentheuraniumbearingpregnantsolutionisbroughttothe
surface,itisrunthroughionexchange(IX)unitswhichremoveuraniumfromthesolutionin
muchthesamewaythatwatersoftenerunitsremovemineralsfromhardwater.Then,the
barrensolutionisrefortifiedwithlixiviantandreturnedtotheinjectioncircuittobepumped
backintotheorezoneforfurtheruraniumrecovery.Therecovereduranium,whichisattached
toIXresins,isthenstrippedfromtheresins,treatedtoprecipitatetheuranium,and
dewatered,filtered,anddriedtoproduceyellowcake.

themeaningoftheAct.Moreimportantly,theNinthCircuitflatlyrejectedplaintiffsassertionthat
Section275(e)oftheAEAimplicitlypreservedEPAsregulatoryauthorityover11e.(2)byproduct
materialundertheCWA.TheNinthCircuitheld:
TheAEAcreatedapervasiveregulatoryschemevestingexclusiveauthoritytoregulatewith
theAEC[nowNRC]andpreemptingregulationbyotheragenciesThus,Congressintendedto
excludematerialsregulatedundertheAEAfromthedefinitionofpollutantundertheCWA
DawnMining,1998U.S.App.LEXISat1430,citingTrainv.ColoradoPublicInt.ResearchGroup,426U.S.
1,16(1975).
PriortotheenactmentoftheMillTailingsAct[UMTRCA],theEPAwasnotregulatingtailings.TheNRC
hadbeenregulatinguraniummilltailingsatactivesitesunderitslicensingpower,butithadnoauthority
toregulatetailingsatinactivesites.Thus,theMillTailingsAct[UMTRCA]wasenactedinparttoclose
theregulatorygapandgiveNRCtheexpresspowertoregulatemilltailingsat[licensedbut]inactive
sites.

39

Asageneralproposition,ISRfacilitieshavebeensubjecttothesameregulationsas
conventionaluraniummillfacilities(i.e.,10CFRPart40,AppendixA)whererelevant.While
someofthePart40regulationsarenotrelevanttoISLuraniumrecovery(e.g.,tailings
impoundmentdesign),manyofthemhavebeenapplieddirectly.Forexample,Criterion9,
whichlaterbecamethesubjectofintenselitigationattheCommission,hasbeendirectly
appliedtofinancialsuretyarrangementsforISRlicensees.Giventhatbothconventionaland
ISRfacilitiesrequireD&Datsomelevel,Criterion9requirementscanbeapplieduniversally.
Anotherexampleistheaforementioned5/15standardforradiuminsoil,includingitsuseas
areferencecriteriaforcleanupofotherradionuclidesinsoil(e.g.,uranium)inAppendixA,
Criterion6,whichalsoappliestosurfacesoilduringD&DatISRfacilities.

ii. MILLINGUNDERGROUNDDECISION

Inaddition,anotherCommissionlegalstaffadvisoryopinionin1980(1980ISL
Memorandum)112claimedNRChadjurisdictionoverboththeabovegroundandbelowground
aspectsofISRoperations.NMAdisagreedandarguedinitsWhitePaperthatNRCs
fundamentalpremisethatthesubsurfacecomponentofanISRfacilityisnotreallyamine,
butratherismoreliketheprocessingportionofaconventionaluraniumrecoveryfacility(i.e.,
undergroundmilling)waserroneous.NMAalsoarguedthatthe1980ISLMemorandums
continuedrelianceontheNationalEnvironmentalPolicyActof1969(NEPA)asproviding
supplementalauthoritytoregulateISRwellfieldswasinerrorandthatNRCStaffsposition
ignoredthefactthattheminingstreamretrievedfromtheundergroundorebodycontainsless
than0.05%,byweight,uraniumand,thus,doesnotconstitutelicensablesourcematerialand
hasnotbeenremovedfromitsplaceinnatureuntilitreachesthesurfaceattheIXunit(at
theearliest).Finally,NMAarguedthattheMemorandumignoredthefactthatNRCregulations
overwellfieldsareunnecessarilyduplicative,sinceEPAorStateswithprimacyalreadyregulate
thewells,includingradiologicalconstituents,pursuanttotheSDWAsUICprogram.113OnJuly
26,2000,theCommissionissuedSRM/SECY99013whichreaffirmeditsauthoritytoregulate
ISRproductionactivitiesandexpandeditsauthoritytoregulaterestorationwastewaterand
sludgesas11e.(2)byproductmaterial.ThischangeinCommissionpolicy(i.e.,restoration
wasteswerenotpreviouslyregulatedas11e.(2)byproductmaterialasrestorationisconducted
primarilyforcleanupoftheminingzoneandnotprimarilyforsourcematerialrecovery)
introducedsomesignificantuncertaintyintoISRregulation,includingspecificallysuretyand
licenseterminationdecisions.114Inthisdecision,NRCdeterminedthatithasexclusive,
preemptiveAEAjurisdictionoverproductionandrestorationinISRwellfieldsand,thereby,
createdthelargestsourceofdualjurisdictionwithnonAgreementStatesforISRsource
materialrecoveryfacilities.

112
SeeExhibit40.
113
NMAsargumentsonthisissuemaybefoundinNMAs1997WhitePaperentitledRecommendations
foraCoordinatedApproachtotheUraniumRecoveryIndustry.
114
UnitedStatesNuclearRegulatoryCommission,StaffRequirementsSECY99013,Recommendations
onWaystoImprovetheEfficiencyofNRCRegulationatinSituLeachUraniumRecoveryFacilities(July
26,2000)(hereinafterExhibit52).

40

Afterissuanceofthemillingundergrounddecision,NRCandtheStatesofWyoming
andNebraskaenteredintodiscussionsregardingpotentialdeferralofNRCregulatoryauthority
overuraniumproductionandgroundwaterrestorationtotheStates.BothStatespossessed
primacyoverSDWAUICrequirements,anditwaspostulatedthatsuchStatescouldactively
assumeregulatoryauthorityoverproductionandgroundwaterrestorationinaccordancewith
anyNRCrequirements.TheultimateendofthesenegotiationswasintendedtobeanMOU
betweenNRCandtheStatesallowingforsuchStatestoassumegroundwaterrestoration
regulatoryauthorityandtomaintainactivecommunicationwithNRCregardingthestatusof
regulatoryactivities.However,thisprocessfalteredwhentheCommissiondeclinedtopursue
suchanAgreement.115Sincethattime,negotiationshavenotresumed.

InresponsetoindustryconcernsregardingISRversusconventionalmillregulations,NRC
StaffpreparedSECY99011entitledDraftRulemakingPlan:DomesticLicensingofUraniumand
ThoriumRecoveryFacilitiesProposedNew10CFRPart41inanefforttoconsolidate
regulationofuraniumrecoveryfacilitiesintoaregulatoryregimeseparatefromNRCsgeneric
sourcemateriallicensingregulations.However,onbehalfofmembersoftheuraniumrecovery
industry,NMArequestedthatNRCpostponethePart41rulemakingbecauseofthefinancial
difficultiestheuraniumrecoveryindustryhadbeenexperiencingduetodepresseduranium
prices.Since,bystatute,NRCismandatedtorecovermostofitsbudgetduringanyspecific
fiscalyear116,NMAwasconcernedthatanewPart41rulemakingwouldforceuraniumrecovery
licenseestopaysignificantNRCfeeswhichtheycouldillaffordtopay.Sothattheuranium
recoveryindustrycouldremainviable,whichNRCnotedisinthepublicinterest,117NRCdecided
toforegothePart41rulemakingand,instead,toaddresschangesanddevelopmentsin
alternatefeedprocessinganddirectdisposalthroughstandardreviewplans(SRPs)thatwere
beingprepared.

Lastly,NRCrecentlyevaluatedtheapplicabilityof10CFRPart40,AppendixACriteriato
ISRfacilitieswithrespecttogroundwaterrestoration.Afterextendingitsauthorityto
subsurfaceoperationsinISRwellfields,NRCevaluatedtheapplicabilityofCriterion5to
groundwaterrestorationanddeterminedthatCriterion5(B)(5)requirementsforgroundwater
qualityatconventionalmillfacilitiesdirectlyappliestoISRwellfields.Thus,anISRoperator
seekingalicenseforanISRprojectisrequiredtocomplywithCriterion5(B)(5)groundwater
qualitystandards,includingforfinalgroundwaterrestoration,priortoNRCapprovalofsuch

115
SeeExhibit53,whichincludesapackageofdocuments,authoredbyNMAandNRCStaff/the
Commission,onthisissue.
116
PursuanttotheFY2001EnergyandWaterDevelopmentAppropriationsAct,NRCisonlyrequiredto
recover98percentofitsbudgetascomparedto100percentthepriorfiscalyear.Thispercentagewill
decreasebytwo(2)percentperyearuntil2005.
117
Thecontinuedexistenceofthe[Sweetwater]millisinthepublicinterestasitisoneofonlysix
uraniummillsremainingintheUnitedStatesandtheonlyoneremaininginWyoming.Letterfrom
MelvynLeach,ActingChief,FuelCycleLicensingBranch,divisionofFuelCycleSafetyandSafeguards,
OfficeofNuclearMaterialSafetyandSafeguards,toOscarPaulson,Re:SweetwaterUraniumMill(SUA
1350)Five(5)YearPostponementofInitiationofDecommissioning,(July17,2001)(hereinafterExhibit
54).

41

restoration.ThiscreatesanotherdualjurisdictionissuewithrespecttoWyominggroundwater
restorationstandardsimposedunderitsUICprimacyprogram.Further,sinceNRChas
determinedthattheAEAdirectlyappliestoISRsurfaceandsubsurfaceactivities,State
jurisdictionoverwellfieldactivitiessuchasprocessfluidspillsislikelypreempted.Finally,now
thatNRChasdeterminedtheAEAappliesalltoISRactivities,theaforementioneddiscussionof
potentialdeferralofregulatoryauthorityovergroundwatertoStatesthroughanMOUiseven
moreproblematicassuchdeferralpotentiallycouldbeconsideredtobeinviolationofthe
AgreementStateprovisionsoftheAEA.

42

I. CATEGORY1:APPLYINGFORANDBECOMINGANAGREEMENTSTATE

A. UNITEDSTATESNUCLEARREGULATORYCOMMISSIONAGREEMENTSTATEPROGRAM

1. NRCAGREEMENTSTATEPROGRAMBACKGROUND

UndertheAEA,Congresssoughttocreateapervasive,comprehensivestatutory
andregulatoryregimeinwhichtheAEC/NRCwouldhavetheprimaryauthorityfor
implementationandenforcementofAEArequirementsforthelicensingofsource,special
nuclear,118andbyproductmaterial.However,CongressalsoempoweredNRCtowithdrawits
regulatoryauthorityoverAEAmaterialsandtoenterintoanagreementpermittingState
regulatoryauthoritiestoregulatecertainmaterialsinaccordancewiththeAEA.

CongressenumeratedtherequirementsforStatestoassumesuchauthorityinSection
274oftheAEAentitledCooperationWithStates.119UnderSection274,Congressauthorized
theCommissiontoenterintoagreementswithStateregulatoryauthoritiesprovidingfor
discontinuanceoftheregulatoryauthorityoftheCommissionwithrespecttoanyoneormore
ofthefollowingmaterialswithintheState:

(1) byproductmaterialsasdefinedinsection11e.(1);
(2) byproductmaterialsasdefinedinsection11e.(2);
(3) sourcematerials;
(4) specialnuclearmaterialsinquantitiesnotsufficienttoformacriticalmass.120

CongressalsoprohibitedtheCommissionfromdiscontinuingregulatoryauthorityoverthe
constructionofaproductionorutilizationfacility(i.e.,nuclearpowerplants,gaseousdiffusion
orenrichmentfacilities),theexportorimportofAEAmaterials,andtheoceandisposalofAEA
materials.121

Withrespectto11e.(2)byproductmaterial,Congressalsonotedthat[t]heCommission
shallalsoretainauthorityunderanysuchagreementtomakeadeterminationthatall
applicablestandardsandrequirementshavebeenmetpriortoterminationofalicensefor

118
StatesunderSection274oftheAEAareonlypermittedtoregulatespecialnuclearmaterialin
quantitiesnotsufficienttoformacriticalmass.Regulationofspecialnuclearmaterialinquantities
sufficienttoformacriticalmassisexpresslyreservedtotheCommission.
119
42U.S.C.2021.
120
42U.S.C.2021(b)(14)(emphasisadded).ItisalsoimportanttonotethatintheEnergyPolicyActof
2005,Congresscreatedtwonewclassesofbyproductmaterialknownas11e.(3)&11e.(4)byproduct
material.However,neitheroftheseAEAmaterialsarerelevanttothisfeasibilitystudy.
121
42U.S.C.2021(c).

43

byproductmaterial,asdefinedin[S]ection11e.(2).122Thus,11e.(2)byproductmaterial
facilitiesrequirefinalsignoffbytheCommissionofanAgreementStateapprovedclosure,
priortofinalsiteclosureandlicensetermination.Theformandprocessofthisfinallicensing
determinationiscriticaltotheStatesunderstandingofitsrelationshipwithNRCwhileit
operatesitsAgreementStateprogram.Accordingly,amorethoroughdiscussionofthis
licensingactionwillbediscussedinSectionII(A)(7)below.

InJuneof1981,representativesofAgreementStatescomplainedthatNRCwasnot
permittingthoseStatestodeveloptheirownsitespecificrequirementsforregulationof
uraniummillingfacilitiesinlieuoftherequirementspromulgatedbyNRC,evenifthoseState
alternativesprovidedlevelsofprotectionequivalenttothoseaffordedbyNRCregulations.
Indeed,SenatorPeteDomenicisummarizedthetestimonysuccinctly:

NRCissayingthatregardlessofwhatthelawsayswithreferencetoanequivalent,to
theextentpracticable,ormorestringentthan,thattheirinterpretationnowissince
theyhavenoEPAstandard,itwillbe[theNRCstandards]ornothingelse.123

Similarproblemswerereportedbyanumberoflicensees,whofoundNRCunwillingtoaccept
anylicenseeproposedalternativestothestandardspromulgatedbytheCommission.

Inresponse,CongressamendedtheAEAtomodifycertainsectionspreviouslyaddedby
UMTRCA.124Inparticular,Section274oftheAEAwasamendedtoprovideAgreementStates
withexplicitauthoritytoadoptalternatives(including,whereappropriate,sitespecific
alternatives)totherequirementsadoptedandenforcedbytheCommissionprovidedthey
achievealevelofprotectionequivalentto,totheextentpracticable,ormorestringentthan
thelevelofprotectionaffordedbyNRCsstandards.125

InbecominganAgreementState,Statesarenotrequiredtoassumejurisdictionoverall
AEAmaterialsandoperationsunderaSection274Agreement.Statesarefreetorequesteither
theentiresuiteorportionthereofofAEAmaterialsandoperationsregulatedundertheAEA(to
theextentthepowersarenotexpresslyreservedtotheCommission).Therearenumerous
examplesofAgreementStatesintheUnitedStatesthathaveacceptedandmaintained
AgreementStateprogramsthatdonotincludespecificAEAmaterialsand/oroperations.Thus,
theStateofWyomingisfreetoapplyforjurisdictionoveronlysourcematerialrecoveryand
11e.(2)byproductmaterial.

122
42U.S.C.2021(c).
123
ImplementationoftheUraniumMillTailingsRadiationControlActof1978:HearingsBeforethe
Subcomm.OnNuclearRegulationoftheSenateComm.onEnvironmentandPublicWorks,97thCong.17
(1981).
124
Pub.L.No.97415,96Stat.2067(1983)(hereinafterExhibit55).
125
Id.codifiedat42U.S.C.2021(o).

44

2. AGREEMENTSTATEPROGRAMREQUIREMENTS:ADEQUACYANDCOMPATIBILITY

AstheAgreementStateprogramiscurrentlyconstituted,inorderfortheCommissionto
withdrawitsregulatoryauthorityoveroneormoreAEAmaterialslistedinSection274(b),the
petitioningStatemustdemonstratetotheCommissionthefollowing:

(1) thattheStatedesirestoassumeregulatoryresponsibilityfortherelevantAEA
material(s);and

(2) thattheStatehasaradiationcontrolprogramadequatetoprotectpublichealth
andsafetyfromthepotentialhazardsoftherelevantAEAmaterial(s)126

NRCsAgreementStaterequirementscarrywiththemtwokeycomponents.Thefirst
requirementisthatanAgreementStatesproposedregulationsbeadequatetopromotethe
purposesoftheAEA.ThetermadequacyisdefinedinNRCsPolicyStatementonAdequacy
andCompatibilityofAgreementStateProgramsasadequatetoprotectpublichealthand
safetyifadministrationoftheprogramprovidesreasonableassuranceofprotectionofpublic
healthandsafetyinregulatingtheuseofagreementmaterial.127ThisisinaccordwithSection
274oftheAEAthatrequiresAgreementStatestandardstobeatleastasstringentasNRC
regulations.

Second,therelevantStatemustadequatelydemonstratetotheCommissionthatits
radiationsafetyprogramforAEAmaterialsiscompatiblewithAEA/NRCrequirements.128When
theCommissiondeterminesthattheproposedagreementwiththerelevantStateshould
becomeeffective,theAEArequiresthatsuchagreementbepublishedonceaweekforfour
consecutiveweekssothatthepublicmaysubmitcomments.129Aftersuchcommentsare
reviewed,theCommissionwilldeterminewhetherornottheagreementshouldbeexecutedor
whetherrevisionstosuchagreementarerequired.

PursuanttotheAEA,theCommissionretainstheauthoritytosuspendorcancela
StatesSection274Agreementifitdeterminesthatsuchprogramiseitherinsufficientto
protectpublichealthandsafetyorisincompatiblewiththeAEAandtheCommissions
regulatoryprogram.WithrespecttoongoingreviewofAgreementStateprograms,NRChas
developedasystemofcompatibilitycategoriesunderwhichallaspectsofaStateradiation
controlprogram,includingitsstatutoryandregulatorysourcesofauthority,areclassified.STP
ProcedureSA200definestherelevantcompatibilitycategoriesforAgreementStatestofollow
whencreatingradiationsafetyprogramregulations:

126
42U.S.C.2021(d).
127
SeeUnitedStatesNuclearRegulatoryCommission,PolicyStatementonAdequacyandCompatibility
ofAgreementStatePrograms;StateofPrinciplesandPolicyfortheAgreementStateProgram,
(hereinafterExhibit57).
128
42U.S.C.2021(d)(2).
129
42U.S.C.2021(e)(1).

45

(1) CategoryAisdefinedas[b]asicradiationprotectionstandardorrelated
definitions,signs,labelsortermsnecessaryforacommonunderstandingof
radiationprotectionprinciples.TheStateprogramelementshouldbeessentially
identicaltothatofNRC;

(2) CategoryBisdefinedas[p]rogramelementwithsignificantdirect
transboundaryimplications.TheStateprogramelementshouldbeessentially
identicaltothatofNRC;

(3) CategoryCisdefinedas[p]rogramelement,theessentialobjectivesofwhich
shouldbeadoptedbytheStatetoavoidconflicts,duplicationsorgaps.The
mannerinwhichtheessentialobjectivesareaddressedneednotbethesameas
NRC,providedtheessentialobjectivesaremet;130

(4) CategoryDisdefinedasprogramelementsthatdonotmeetanyofthecriteria
ofCategoryA,B,orCand,thus,donotneedtobeadoptedbyAgreement
Statesforpurposesofcompatibility;

(5) CategoryHealthandSafetyaredefinedasprogramelementsthatarenot
requiredforcompatibilitybuthavebeenidentifiedashavingaparticularhealth
andsafetyrole(i.e.,adequacy)intheregulationofagreementmaterialwithin
theState.

(6) CategoryAreasofExclusiveNRCRegulatoryAuthorityaredefinedasitemsthat
areexpresslyreservedtotheCommissionsuchasregulationofnuclearpower
generationfacilities

ThesecompatibilityrequirementsserveasaprimarybasisforNRCsOfficeofFederalandState
MaterialsandEnvironmentalProtections(FSME)IntegratedMaterialsPerformanceEvaluation
Program(IMPEP).UndertheIMPEPreviewsofAgreementStateradiationsafetyprogramsare
conductedtoensurethatsuchprogramsareadequatelyprotectiveofpublichealthandsafety
andarecompatiblewithAEA/NRCrequirements.

i. NRCCOMPATABILITYACATEGORY

ThefirstcategoryisclassifiedasCompatibilityCategoryA.CategoryAisgenerally
definedasprogramelements:AnAgreementStateshouldadoptprogramelementsessentially
identicaltothoseofNRCtoprovideuniformityintheregulationofagreementmaterialona

130
UnitedStatesNuclearRegulatoryCommission,OfficeofStateandTribalPrograms,Compatibility
CategoriesandHealthandSafetyIdentificationforNRCRegulationsandOtherProgramElements,STP
ProcedureSA200(October8,2004).Previously,CategoryAcompatibilityregulationsrequiredidentical
languagetothatofNRC(hereinafterExhibit56).

46

nationwidebasis.131InNRCssourcematerialrecoveryprogram,arepresentativeexampleof
CompatibilityArequirementsarethe10CFR40.4definitionsofsourcematerial,[11e.(2)]
byproductmaterial,anduraniummilling.132Eachofthesedefinitionsrequiresthatan
AgreementStateadoptanessentiallyidenticaldefinitionofthesetermsandemploythemas
suchduringoperationoftheAgreementStateprogram.Indeed,atonepoint,theStateof
TexasAgreementStateprogramattemptedtoredefinethedefinitionofbyproductmaterial
byattemptingtoinsertadditionaltypesofradioactivematerialintothatclassofAEAmaterial
(andothertailingshavingsimilarradiologicalcharacteristics).InanIMPEPreportdated
December28,1994,NRCdeterminedthatTexasdefinitionofbyproductmaterialwasnot
compatiblewiththeAEAsandNRCsdefinitionandneededtoberevised.133TheAssessment
SectionofthisreportspecificallyaddressedthereasonsforNRCsdecisionincludingthefact
thatbyproductmaterialregulationsaddressboththeradiologicalandnonradiological
componentsofthewastestreamandthatchangestothedefinitioncouldunwittinglyendanger
thefuturetransferof11e.(2)byproductmaterialdisposalsitestoDOEortheStateifmaterials
thattraditionallyarenotdefinedas11e.(2)byproductmaterialaredisposedofintailings
impoundments.Eventhoughtherecommendedrevisiontothedefinitionwasminimal,it
servesasanexampleofhowNRCcandirectanAgreementStatetoamenditsprogramfor
CompatibilityArequirements.

ii. NRCCOMPATIBILITYBCATEGORY

ThesecondcategoryisclassifiedasCompatibilityBrequirements.CompatibilityB
requirementsdonotcarryexactlythesameweightasCompatibilityArequirements;but,they
docarrysignificantpotentialfornational/transboundaryimplications,includingtransportation
requirements.TwogoodexamplesofCompatibilityBrequirementsarethe10CFR40.13
regulationsforunimportantquantitiesofsourcematerialandthe10CFR40.22general
licensingrequirements.AsstatedinSection2ofCategory1,unimportantquantitiesof
sourcematerialarebasedonSection62oftheAEAandisthethresholdrequirementfor
licensablesourcematerial.Generallicensingrequirementsarethenextstepindeterminingthe
typeofAEAregulationthatistobeimposedonquantitiesoflicensablesourcematerial(general
orspecificlicenses).Thesebasicregulatoryrequirementshaveaprofoundeffectonhow
sourcematerialisregulatedinbothnonAgreementandAgreementStates.Thus,NRC
recommendsthatcompatibilityrequiresthatessentiallythesamelanguagebeadopted.If
thereareincompatibilityissues,transferofsourcematerialbetweenStateswithdifferent
regulationscouldbeaffectedsignificantlyandcauseregulatoryconfusion.Withrespectto
sourcematerialrecovery(i.e.,sourcematerialmilling),thesetworegulationsgenerallydonot

131
SeeUnitedStatesNuclearRegulatoryCommission,ManagementDirective5.9:Adequacyand
CompatibilityofAgreementStatePrograms(February27,1998)(hereinafterExhibit58)
132
Itisimportanttonotethateachofthedefinitionsin10CFRPart40,AppendixAareconsidered
CompatibilityArequirements.
133
SeeExhibit59,whichincludesapackageofdocumentsdescribingtheStateofTexascorrespondence
withNRCStaffregardingitsdefinitionof11e.(2)byproductmaterial.

47

applybecauseallsourcematerialmillinglicenseesarespecificlicenseesduetothepossession
of11e.(2)byproductmaterial.

iii. NRCCOMPATIBILITYCCATEGORY

ThethirdcategoryisclassifiedasCompatibilityCrequirements.CompatibilityC
requirementsshouldbeadoptedtoavoidconflicts,duplications,orgapsintheregulationof
agreementmaterialonanationwidebasisandthat,ifnotadopted,wouldresultinan
undesirableconsequence.134Theseunintendedconsequencesinclude,butarenotlimitedto,
[exposuretoanindividualinadifferentjurisdictioninexcessofthebasicradiationprotection
standardsestablishedforcompatibilityinCategoryAand[p]reclusionofaneffectivereview
orevaluationbytheCommissionandAgreementStateprogramsforagreementmaterialwith
respecttoprotectionofpublichealthandsafety.135AnexampleofCompatibilityC
requirementsarethe10CFRPart40,AppendixA,Criteria110forsourcematerialrecovery
facilities.136TheseCriteriareflectNRCrequirementsforsuchfacilitiesandtypicallyareadopted
asisbyAgreementStates137toensurethatalicensedsourcematerialrecoverysite
ultimatelycanhaveitslicenseterminatedinaccordancewithAEArequirementsandcanbe
releasedforunrestricteduse(ISR)ortransferredtoDOEforLTSM(conventionalmills,heap
leachfacilities,11e.(2)disposalfacilities)138.

iv. NRCCOMPATIBILITYDCATEGORY

ThefourthcategoryisclassifiedasCompatibilityDrequirements.CompatibilityD
requirementsessentiallyareacatchallunderwhichsuchrequirementsdonotmeetanyof
thecriteriaofCategoryA,B,orCandarenotrequiredforcompatibilitypurposes.Examplesof
CompatibilityDrequirementsincludeseveral10CFRPart40.4definitionsthatarenotdirectly
definedintheAEAsuchaslicenseandpurpose&scopeandtherequirementsforspecific
exemptionsasAgreementStatesarenotrequiredtohaveprovisionsforsuchexemptions.10
CFRPart40requirementsforissuanceofspecificlicensesalsocarryaCompatibilityD
classificationasAgreementStatestypicallyareallowedtoissuepermitsorlicensesand
AgreementStateprojectmanagerscandeterminewhatisrequiredforasatisfactory
application.

134
SeeUnitedStatesNuclearRegulatoryCommission,HandbookforProcessinganAgreement,(July19,
2007)(hereinafterExhibit60).
135
Id.
136
Id.
137
Id.
138
Unlikethesefacilities,ISRfacilitiesarereleasedforunrestricteduseatlicenseterminationratherthan
transferredtoDOEortheresidentStateforLTSM.However,NRCstillretainsultimatesignoff
authorityforsiteclosureandlicenseterminationforISRs.

48

v. NRCCOMPATIBILITYH&SCATEGORY

ThefifthcategoryisclassifiedasCompatibilityHealthandSafety(H&S)requirements.
CompatibilityH&Srequirementsarenotspecificallyrequiredtobecompatible,butpotentially
couldhavealinktoaparticularhealthandsafetyissueifitwouldcauseanentitytoexceed
CategoryAradiationprotectionstandards.Forpurposesofthisstudy,mostCompatibilityH&S
requirementsdonotfallundersourcematerialrecoveryregulations.However,somefinancial
assurancerequirementsunder10CFRPart40.36dohaveanH&Sclassification.But,
AgreementStatestypicallyhandlefinancialassuranceindependentlyofcompatibility
requirements;although,thefinancialassurancerequirementsin10CFRPart40,AppendixA,
Criterion9applicabletosourcematerialrecoveryfacilitieswillbeNRCsstartingpointforany
reviewofAgreementStatedecisions.

vi. NRCCOMPATIBILITYEXCLUSIVECATEGORY

Lastly,thefinalcategoryisclassifiedasCompatibility:ExclusiveNRCRegulatory
Authority.Simplyput,CompatibilityExclusiverequirementsreflectthosethattheAEA
expresslyreservestotheCommission.Inthesourcematerialrecoveryrealm,anrepresentative
examplewouldbethattheCommissionretainsexclusiveauthoritytosignoffonfinalsite
closureandlicenseterminationofuraniumrecoveryfacilitiespriortoreleaseforunrestricted
use(ISR)ortransfertoDOEforLTSM(conventionalmill).AgreementStatescanbeempowered
to,and,indeed,areandhavebeenempoweredunderasourcematerialrecoveryAgreement,
toreviewandapproveallfinalD&Dactivitiesforaparticularlicensed/permittedsite.However,
asnotedaboveNRCretainstherighttofinalsignoffontheworkandevaluationsperformed
bytheAgreementStateprogramandthelicensecannotbeterminateduntilsuchapprovalhas
beenobtained.AnexampleofthisisthecurrentlyongoingnegotiationsbetweentheStateof
ColoradoandNRCStaffontheHeclaDuritaheapleachsiteinwesternColorado.Colorado
finalizeditsevaluationoffinalD&DoftheDuritasiteandsubmittedadraftreporttoNRCin
2003forfinalconcurrence.WhileColorado,deemeditsworktobecompleteforsiteclosure
andlicensetermination,NRCcontinuestoreviewthesubmissionandprepareitsfinal
determination.NumeroussitevisitsandreviewshavebeenconductedbyColorado,but
becauseofNRCsexclusiveauthoritytoapprovefinalsiteclosureandlicensetermination,the
DuritasitehasnotyetbeentransferredtoDOEforLTSM.139

3. NRCAGREMENTSTATEPROCESSANDPROCEDURES

OnepositivefeatureofaStateattemptingtobecomeanNRCAgreementStateisthat
NRCsprocessandprocedurestodosoarelargelystandardizedandrelativelyeasytofollow.
The1998NRCDirective5.9providesadditionalguidanceforStatesseekingAgreementState
statusincludingaseriesofsectionsthatallowtheAgreementStateprogramdirectorto
properlycategorizeNRCregulationsbasedoncompatibilityfortranslationtoAgreementState

139
SeeUnitedStatesRegulatoryCommission,FSMEProcedureApproval:TerminationofUraniumMilling
LicensesinAgreementStates,SA900(May17,2013)(hereinafterExhibit63).

49

regulations.TheDirectivealsoreferencesanumberofotherdocumentsthatcanbeusedby
theAgreementStateprogramdirectortodeterminehowaprogramshouldbeconstructedand
howongoingchangestoNRCregulationsthroughrulemakingorpolicydeterminationsfromthe
CommissionorbyNRCStaffcanandshouldbeimplemented.Whileitistypicaltorefertothe
AgreementStateprocessasa14stepprocess,aswillbediscussedbelow,thisfeasibility
studyconsolidatesallstepsintoa3stepprocess.

However,the1998NRCDirective5.9ismerelythestartingpointforaStatepurporting
topursueAgreementStatestatus.AfterevaluatingthisDirectiveanditssubsequentPolicy
StatementsanddeterminationsanddeterminingthatpursuitofAgreementStatestatusis
appropriateforaState,thedetailedprocessforbecominganAgreementStatecanbefoundin
NRCsguidancedocumententitledSA700:ProcessinganAgreementandtheHandbookfor
ProcessinganAgreement.

SA700providestheStatewithguidanceonthemannerinwhichNRCexpectsa
candidateStatetoconducttheAgreementStateapplicationprocess.SA700isthestandard
guidancedocumenttobeusedbycandidateAgreementStatesand,asisthecasewithallNRC
guidancedocuments,itisamanualthatprescribeswhatNRCStaffislookingforwhen
processinganapplication.StandardNRCprocedureforguidanceisifyouprovideNRCStaff
reviewerwithexactlywhatisintheguidance,thenyourprocessshouldcontinuewithoutthe
needforadditionalinformation.However,flexibilitytypicallyisbuiltintoNRCguidance
documentstoallowapproachinganapplicationinamannerwhichvariesfromtheguidance,
butmajorvariationscanrequiresignificantjustification.

PursuanttoSA700,boththecandidateStateandNRCStaffhavespecific
responsibilities.Fromaprogrammaticperspective,thecandidateStateisresponsiblefor
installingandcertifyingthattheyhaveanadequateandcompatibleradiationprotection
program(withGovernorscertification);whileNRCStaffhastheresponsibilityofcertifyingthat
theAgreementStateprogramsatisfiesallrelevantAEArequirements,includingthe1998NRC
Directive5.6.NRCStaffpersonnelarespecificallynamedandtheirrolesarediscussedinSA
700ingreatdetail.

PriortoengagingintheSA700processandduringtheprocessitself,itishighly
recommendedthattheStateengageinfrequentinteractionwithappropriateNRCStaff.
EspeciallypriortoengaginginStep1,theStateshouldengageinaseriesofmeetingswithNRC
stafftoassurethateachpartyfullyunderstandswhatisexpectedofthemduringtheprocess.
Interactionswithanyfederalagencythatreliesonguidanceeffectivelymandatesthatthese
meetingsoccurbecauseconfusionbetweenStateandfederalagencywillresultindelaysinthe
processandcanrequiremoreStatebasedresourcestoachievesuccess.Withspecificrespect
toNRC,industrymembersandpastcandidateAgreementStateshaverealizedmajorbenefits
byhavingfrequentinteractionpreStep1withNRCStaffsothateachexchangeofdocuments
andinformationcanbeaccomplishedonthefirstsubmissionwithouttheneedforsignificant
revisionsoradditionalinformation.Experiencesinthesourcematerialrecoveryindustryhave
demonstratedthattheexpenditureofresourcesrespondingtoadditionalquestionscauses

50

resourceexpenditurestoincreasesignificantly.WhileNRCdoesnotbillacandidateStatefor
workdoneduringtheAgreementStateapplicationprocess,thecandidateStatewillcontinueto
expenditsresourcestocompletetheprocess.Minimizationofexpendedresourcesshouldbe
oneoftheultimategoalsofthisprocessforanAgreementStateapplication.

i. PROCESSSTEPONE:GOVERNORSCERTIFICATIONLETTER&STATEDRAFT
REQUEST

Step1oftheAgreementStateprocessunderSA700guidanceisthesubmissionofa
letterofintentbytheState(signedbytheGovernor)totheNRCChairmantoinitiatethe
AgreementStateapplicationprocess.SA700specificallyreferencesotherguidancedocuments
suchastheaforementionedHandbookanditsAppendixCfortheformatandcontentofsucha
letter.

ThisfirstStepmayappeartobesimplistic,butitisnotforavarietyofreasons.First,the
State(Governor)mustcertifyintheletterthattheresourcestopursueAgreementStatestatus
areofficiallycommitted.Whileasnotedabove,NRCdoesnotbilltheStateforstandard
AgreementStateprocessstafftime,theStatedoeshavetocommitadequateresourcesmoving
forwardsothatNRCcanjustifytheexpenditureofitsStaffresourcestotheCommission.
Second,andmostimportantly,thecandidateStateprogramdirectormustprepareaformal
requestforaSection274AgreementinaccordancewithHandbookSection3.4.The
preparationofthisrequestismuchmoredetailedthantheGovernorslettertotheChairman.
ThedraftrequestshouldcontainadraftcertificationletteranddescriptionoftheAgreement
Statematerialsregulatoryprogram,aswellasdrafttextfortheproposedAgreement.140While
thisdraftisbeingprepared,thecandidateStateprogramdirectorisadvisedtoprovideNRC
withatleasttwo(2)monthsadvancenoticeofwhenthedraftwillbesubmitted.Atthattime,
NRCwillassignStaffcontactsforthecandidateStateduringtheprocess.Oncethedraft
requestisreceived,NRCwillperformthefunctionalequivalentofanacceptancereview141to
determinewhethertheAgreementrequestisadequatetojustifytheexpenditureofStaff
resourcesforadetailedreview.Afterthisacceptance/completenessreviewiscompleted
(timeperiodforreviewvaries),142NRCStaffteammembersprepareandsendalettertothe
AgreementStateprogramdirectordetailingtheresultsoftheacceptance/completeness
review.Priortothereleaseofthisreport,NRCsguidanceencouragesthecandidateStateto

140
AsampleAgreementareattachedaspartofExhibit60.RefertoNRCManagementDirective5.8
entitledProposedSection274bAgreementswithStates.
141
Asageneralmatter,anacceptancereviewisusedbyNRCStafftodetermineifanapplicationforan
AEAbasedaction(e.g.,applyingforAgreementStatestatus)containssufficientdetailtowarrant
detailedreview.DuetothefactthatNRCsbudgetislimitedbyCongressionalappropriations,NRC
Staffisforcedtodeterminewhethertoexpendresourcesonareviewthatwillminimizepotential
resourceexpendituresonanannualbasis.RejectionofanapplicationforanAEAbasedactionisa
publicmatterandcanresultintheneedtorevisetheentiresubmittal.
142
ThisisanotherareawherefrequentinteractionwithNRCStaffcanconserveresourcesasmore
discussionsontheformandcontentofadraftrequestwillminimizetimeframesforreview.Thishas
beenthecaseinthesourcematerialrecoveryfieldforthepastsixtosevenyears.

51

schedulefrequentphonecallswithNRCStafftodiscusstheprogressofthereview.These
conversationstypicallycanresultinidentificationofomissionsorotheritemsofinterestinthe
draftreportallowingthemtobecorrectedpriortocompletionoftheacceptance/completeness
review.

Afterissuanceofthereport,theStateisresponsibleforcorrectinganydeficiency(ies)in
thesubmittedrequest.NRCStaffguidancedirectsthecandidateStatetorevisetheoriginal
submittedrequestandtoresubmitsuchrequestwiththerecommendedrevisionsand/or
additions.Whentheserevisionsand/oradditionsarecompleted,theStateGovernoristo
certifyandresubmittherequest.Itisanticipatedthat,atthisstageoftheprocess,thatthe
candidateStateispreparedtoproceedwiththeformalNRCAgreementStateprocessfor
discontinuanceofCommissionregulatoryauthorityovertherequestedAEA
materials/operations.

ii. PROCESSSTEP2:FORMALSTATEREQUEST&DOCUMENTPACKAGE

WhentheformalrequestforAgreementStatestatusisfinallysubmitted,thenextstep
intheprocessisNRCStaffreviewoftheadequacyoftheformalrequest.TheHandbooks
AppendixCprovidesadetailedlistofthecriteriaforapprovaloftheformalrequest.NRCStaff
ischargedwithreviewingtheformalrequestinaccordancewiththesecriteriaand,ifdeemed
acceptable,willbecomethesubjectofadraftFederalRegisternoticethatmustbeapproved
internallybyNRCStaffuptothedesignatedStaffofficer(typicallytheFSMEDirectorsignsthe
notice).AnyadditionaldeficienciesidentifiedbyNRCStaffmustberemediedpriorto
publicationofthisnotice.

Theaforementionednoticecontainsseveralimportantpiecesofinformation.The
noticewillcontaintheStaffsdraftassessmentofthecandidateStatesformalrequestforan
AgreementaswellasanyuniquefeaturesoftheproposedAgreementtext,includingbutnot
limitedtothescopeoftherequest(e.g.,inthecaseofthisstudyonlyrequestingsource
materialmillingauthority),anychangesinlanguagefromthetypicalAgreementtemplate,and
anyvariationsfromrecommendedSA700guidance.Inaddition,thenoticewillcontaina
proposedeffectivedatefortheAgreement.Whenthisdocumentiscompleted,theStaffthen
preparesadditionalelementsofthispackageofdocumentssuchasadraftpressreleaseand
letterstoappropriateCongressionaloffices(NRCsOversightCommitteesandStatedelegation
members).

iii. PROCESSSTEP3:COMMISSIONAPPROVAL

Aftercompletionofthisdocumentpackage,NRCStaffpreparesaStaffpaperto
accompanythepackageandsubmitsittotheCommissionforapproval.Thispaperalso
includesaproposedProjectScheduleforprocessing,signing,andimplementingtherequested
Agreement.Simultaneously,NRCStaffpreparesaseriesofletterstointerestedFederal
agenciessuchasBLM,USFS,andEPAandallStatesarenotifiedinanAllStatesLetter.For
thispartoftheprocess,thecandidateAgreementStateisstronglyencouragedtobeprepared

52

toprovideNRCwithahighconfidencelevelanalysisoftheproposedscheduleforenactingan
appropriateRadiationProtectionActstatuteandimplementingrulemakingtopromulgate
appropriateregulations.Adescriptionoftherulemakingprocessisalsorecommended,sothat
NRCStaffcanprovideinputonitemssuchasthepubliccommentperiodandanystakeholder
involvement.

AfterformalsubmissionofthepackagetotheCommissionthroughaSECYpaperand
obtainingitsapprovalthroughaStaffRequirementsMemorandum(SRM),theFSMEDirector
signsthenoticeforpublication.Whenthispackageisavailableforpublication,NRCStaffissues
thepackagetotheaforementionedinterestedfederalagencies,Congressionaloffices,and
States.Uponissuanceofthispackageforpublication,apubliccommentperiodcommences
providinganyinterestedstakeholderwiththeopportunitytocommentontheproposed
Agreement.ItisatthispointthattheStatecanandshouldbepreparedtoencourageand
facilitatepubliccommentfrominterestedstakeholdersintheState.Severalmechanismsare
availablefortheStatetomaximizepublicparticipation.TheStateshouldconsiderpostingthe
noticeanddocumentpackageonanAgreementStateprogramwebsiteandpotentiallyholding
aseriesofpublicmeetingsannouncingtheabilitytocommentontheproposedAgreement.
Thisisthefirstofmanyinstanceswheretransparencyintheprocesscanbepromoted.

AnadditionalpointregardingthepubliccommentperiodisthatthecandidateStateis
alsoconsideredtobeaninterestedstakeholder.ThismeansthattheStateisfreetosubmitits
ownpubliccommentsontheproposeddraftAgreementandotherportionsofthedocument
package.Inmostcases,commentsarenotnecessaryasthecandidateStateshouldhave
interactedwithNRCStaffenoughtimestoagreeonthecontentsofthepackage.But,this
opportunitytocommentisavailabletoaddressanyconclusionsregardingacceptabilityof
process.

Upontheclosingofthepubliccommentperiod,NRCStaffsresponsibilityistoprocess
allpubliccommentsand,totheextentnecessary,analyzeandreviseanyportionofthe
documentpackage.Asisthecasewith10CFRPart51EnvironmentalImpactStatement(EIS)
andSupplementalEIS(SEIS)documents,NRCStaffconsiderseachpubliccommentand,tothe
extentnecessary,preparesandpublishesananalyticalsummaryofsuchcomments.This
summarythenbecomespartofthefinalNRCStaffassessmentoftheAgreementrequest.
Whenthisiscomplete,NRCStaffpreparesaseconddocumentpackagethatincludesthefinal
Agreementtext,adraftnoticeannouncingapprovalandsigningoftheAgreement,finalStaff
assessment,Staffsanalyticalsummaryofpubliccomments,andacompletedGeneral
AccountabilityOffice(GAO)formrequiredbytheCongressionalReviewAct.Adraftpress
releaseanddraftCongressionaldelegationlettersarealsoincludedinthepackage.Other
contentsofthepackagewillbediscussedintheCategory2and3Sectionsofthisstudyasthey
arerelevanttobothtransitionandmaintenanceelementsofanAgreementStateprogram.

53

B. AGREEMENTSTATECASESTUDIES

PriortoofferingspecificrecommendationsforanAgreementStateprocesstotheState,
thisstudywillprovidesummarydescriptionsoffour(4)potentialcasestudiesofStatesthat
currentlyoperateAgreementStateprograms,particularlythelatterthree(3)specificexamples
wherethoseStatescurrentlyoperatesourcematerialrecoveryAgreementStateprogramsas
partoftheiroverallAgreementStateprogram:(1)CommonwealthofVirginia(mostrecent
participantintheAgreementStateprocess);(2)StateofColorado;(3)StateofTexas;and(4)
StateofUtah.143Eachofthesestudieswillbediscussedinturnbelow:

1. COMMONWEALTHOFVIRGINIA

TheCommonwealthofVirginiaisoneofthemostrecentadditionstoNRCslistofactive
AgreementStateshavingreceivedAgreementStatestatusin2009.WhileVirginiadidnotseek
toobtainregulatoryauthorityoversourcematerialrecoveryoperationsand11e.(2)byproduct
material,theStatedidobtainregulatoryauthorityoversourcematerial,11e.(1),11e.(3),and
11e.(4)byproductmaterials,andspecialnuclearmaterialinquantitiesnotsufficienttoforma
criticalmass.144

VirginiasAgreementStateprocesswasconductedinaccordancewiththe
aforementionedNRCguidance(StateAgreementsorSA,http://nrc
stp.ornl.gov/procedures.html#stateagree)andcommencedin2005.AtthetimetheAgreement
Stateprocesswasinitiated,thefirststaffhirewastheProgramManager.Afternecessarystaff
wereinterviewedandhired,theprocesscontinuedwiththestatutoryandregulatory
requirementsincludingtheappropriateempoweringstatutebeingdraftedpriorto(in2007)
andsubmittedforenactmentintheCommonwealths2008session.Onaparallelpath,the
appropriateregulationsforimplementingtheempoweringstatuteweredraftedin2007and
approvedafterundergoingtheCommonwealthsrulemakingprocessin20082009.Upon
approvaloftheseregulations,theCommonwealthsAgreementStateprogramsupersededany
existingregulationsthatpotentiallycouldhavecontradictedtheAgreementState
regulations.145

VirginiasregulationsaddressedallaspectsoftheAgreementStateprogram
requirements,includingtheinstitutionofafeesystemtosustaintheprogramonanannual
basis.TheCommonwealthfollowedtheformatof10CFRParts170and171indevelopingits
feerecoverysystemandtailoredthecoststoreflectbudgetaryneedsandthenumberof
licenseesfromwhichitwouldchargefees.Theempoweringstatutealsoaddressedapotential

143
ForpurposesofprovidingamorecompleteoverviewofpotentialcoststotheStateforasource
materialrecoveryAgreementStateprogramandgiventhatthevastmajorityofNRCregulatedsitesare
intheState,NRCisincludedinTable1asanothercasestudy.
144
AcopyoftheCommonwealthofVirginiasSection274AgreementwithNRCisattachedasExhibit2.
145
InVirginia,thiswasaddressedwithlanguageintheregulationsstatingthatotherexistingregulations
thatcouldcontradictorconflictwiththeAgreementStateprogramwouldbesuperseded.

54

MiscellaneousReceiptsActquestioninthatitcontainedaclausestatingthatthecollectedfees
wouldnotreverttotheCommonwealthsgeneralfund,butrathertotheAgreementState
program.Inabsolutetime,VirginiasAgreementStateprocesstookapproximately42months
(3andyears)tocomplete.VirginiasAgreementStateprogramstatisticsarelistedinTable1
below.

Duringtransition,VirginiaagreedwithNRCStaffonatransitionprocessforexisting
licensesandpendinglicenseapplications.Inthiscase,Virginiaagreedthatitwouldtransition
existinglicensesdirectly(asiscommonpractice),andwouldallowNRCStafftocompletethe
reviewsofpendinglicenseapplicationsreceivedpriortotheeffectivedateoftheAgreement.
AnythingsubmittedaftertheAgreementseffectivedatewouldbesubmitteddirectlytothe
AgreementStateprogram.Virginiaalsocreateditsownguidanceforitslicenseesinsteadof
incorporatingNRCguidancebyreference.

Withrespecttopublicparticipation,Virginiaheldatotaloffive(5)regionalmeetings
withintheCommonwealthwithexistinglicenseestoinformthemofitsintenttopursue
AgreementStatestatusandtoeducatethemonhowtheCommonwealthwouldoperatepost
transition.Virginiaalsoavaileditselfofmassmailingsandwebsiteadvertisementstoinform
thepublic.FundingwasnecessarydirectlyfromtheCommonwealthdirectlytomovethese
programsforward,whichalsoistypical.

2. STATEOFCOLORADO

TheStateofColoradobecameanAgreementStatein1968andobtainedregulatory
authorityoversourcematerial,11e.(1)byproductmaterial,andspecialnuclearmaterialin
quantitiesnotsufficienttoformacriticalmass.AfterenactmentofUMTRCAbyCongress,
ColoradothenamendeditsAgreementtoincludesourcematerialrecoveryand11e.(2)
byproductmaterial.

ColoradosAgreementStateprocesswasconductedwellbeforethecreationoftheNRC
guidancedocumentsforsuchprocess.Informationregardinghowthisprocesswasconducted
isnotreadilyavailable.However,currentconditionsintheprogramoverthelast510yearsare
available.Thisfeasibilitystudywillonlydiscussthesourcematerialrecoveryprogramportion
ofColoradosAgreementStateprogram.

ColoradosAgreementStateregulationsareessentiallysimilartoNRCregulationsand,
inthecaseofAppendixACriteria,areidentical.146Inaddition,theStatecreatesitsown
guidanceforlicensereviewsandusesNRCguidancetotheextentpracticable.Further,
Coloradosempoweringstatuteimposesstricttimerequirements(480days)forcompletionof
licensing/permittingreviews,includingadditionalpublicprocessesafterthattimeframehas
elapsed.Thislimitedtimeframeisintendedtoincludetheinitialreviewofthespecificlicense

146
SeeStateofColorado,DepartmentofPublicHealthandEnvironment,HazardousMaterialsand
WasteManagement,6CCR10071(hereinafterExhibit65).

55

application,issuanceofpreliminarydeterminationtograntordeny,andpublicparticipation
processes.ColoradosAgreementStateprogramkeepspersonnelforsourcematerialrecovery
separatefromotherportionsoftheprogramsuchassourcemateriallicenses.Thefulltime
personnelinthesourcematerialrecoveryprogramaretrainedinbothlicensingandinspection
sothatallsuchpersonnelcanperformeitherorbothfunctionsastheneedarises.Inaddition
tofulltimepersonnel,theProgramDirectordevotesapproximatelysixty(60)percentofhisFTE
tothisprogram.TheStateofColoradoalsofollowstheNRCformatforfeerecoveryintermsof
chargingbothannualandhourlyreviewfees.Hourlyfeesarecurrentlyat$152perhour.

ColoradoisanAgreementStatethatrecentlyreviewedandapprovedalicense
applicationforthefirstconventionaluraniummilltobelicensedintheUnitedStatessincethe
1970sforEnergyFuelsResourcesproposedPinonRidgeMillinWesternColorado.Tothe
extentpracticable,NRCguidanceandpreviousanalysesforconventionalmillswasincorporated
intothelicenseapplicationandthereview.Litigationfollowedonthislicenseapplicationand
approvaland,pertheAgreementStateprogram,costsforsuchlitigationwerenotinvoicedto
thelicenseapplicant/licensee,butratherwasabsorbedbytheState.TheStateofColorados
AgreementStateprogramstatisticsarelistedinTable1below.

TheStateofColoradoalsousesaseriesofworkingrelationshipsbetweenindividual
agenciesintheStategovernmenttoensurethattheyhavetherequisiteexpertiseto
adequatelyreviewagivenlicenseapplication.Forexample,theserelationshipsallowforthe
AgreementStateprogramtosolicitreviewandinputfrompersonnelwithengineering
experiencefortailingsimpoundmentdesign,wellconstructionorotherrelevantportionsofa
licenseapplication.Usingthisprocess,theAgreementStateprogramkeepstrackofthetime
spentonagivenlicenseapplicationreviewbyoutsidepersonnelandbillsthemouttothe
applicantusingitshourlyfeeprogram.Aswillbediscussedlaterinthisstudy,thisapproachcan
alsobeaccomplishedusingmemorandaofunderstanding(MOU)inordertoformalizethe
relationships.However,itisnotnecessarytoaccomplishsuchataskthroughsuchMOUs.

3. STATEOFTEXAS

TheStateofTexasbecameanAgreementStatein1963andobtainedregulatory
authorityoversourcematerial,11e.(1)byproductmaterial,andspecialnuclearmaterialin
quantitiesnotsufficienttoformacriticalmass.AfterthepassageofUMTRCAin1978,Texas
amendeditsAgreementtoincludesourcematerialrecoveryand11e.(2)byproductmaterial.147

TexasiscurrentlytheAgreementStatewiththemostactivesourcematerialrecovery
program.Theprogramregulatesseverallicenseesthatobtainedtheirlicenseswellbeforethe
revitalizedinterestinsourcematerialrecovery,recentlyaddressedachangeofcontrol
applicationfortheHobsonISRfacilityontwooccasionsfromEverestMinerals,Inc.toUranium
OneAmericasandfromUraniumOneAmericastoUraniumEnergyCorp.(UEC)andaddresseda
newlylicensed/permittedISRfacilityforUEC(Goliad).Further,theStatealsoaddressed

147
SeeExhibit2.

56

transferandlicensingmattersforUECfortheLaPalanganasiteandongoingrestorationand
othermattersforUraniumResources,Inc.(URI)atseveraloftheirISRsites.Thus,thestructure
ofthisprogramisconsideredtobeanexcellentrepresentativeexampleforWyomings
consideration.TheStateofTexasAgreementStateprogramstatisticsarelistedinTable1
below.

Intermsofpersonnel,theStateofTexasfollowsNRCguidanceonrequirementsforsuch
personnelandhasengineers,hydrologists,andhealthphysicistsonstaff,aswellasaccesstoa
biologisttotheextentnecessary.Texasalsohastheabilitytooutsourceworktoreviewersin
otherdisciplinesastheneedarises.Licensereviewpersonneloccasionallywillparticipatein
inspections.Thecostsassociatedwiththesepersonnelarepassedontothelicenseapplicant
orlicensee.

57

TABLE1: AGREEMENTSTATEPROGRAMSTATISTICS

SALARY
FEDERAL/ REGULATORY NO.OF PERSONNELTYPE ANNUAL
FTE RANGE(PER
STATE PROGRAM LICENSEES &NUMBER BUDGET
YEAR)
EIGHT(8)GS15s;
8SOURCEMATERIAL
FIVE(5)GS14s;
RECOVERY FIVE(5)HYDROGEOLOGISTS;
ONE(1)GS13:
LICENSEES FIVE(5)HEALTHPHYSICISTS;
GS15:
SOURCEMATERIALRECOVERY APPROXIMATELY NINE(9)SAFETYPROJECT $2.5$3.0MILLION
NRC (URANIUMRECOVERY) 11SOURCE 20
$123,000$155,000
MANAGERS;FIVE(5) DOLLARS
GS14:
MATERIALRECOVERY ENVIROMENTALPROJECT
$105,000$136,000
LICENSEDSITESIN MANAGERS
GS13:
DECOMMISSIONING
$90,000$115,000
409SPECIFIC 1DIRECTOR
SOURCEMATERIAL,11E.(1) LICENSEES(NONE 5SPECIALISTS
VIRGINIA BYPRODUCTMATERIAL,SPECIAL ARESOURCE 7 $48,000$54,000 (LICENSING/INSPECTIONS) $800,000
NUCLEARNOTINCRITICALMASS MATERIAL 1ADMINISTRATIVE
RECOVERY) ASSISTANT
3+60%OF REGULATORYSPECIALIST;HEALTH
PROGRAM PHYSICIST;
MANAGER;OTHER ENVIROMENTALPROTECTION NOTFIXED;KEYEDTO
APPROXIMATELY7 SPECIALIST;
DEPARTMENT SALARIESBUT
(SEVERALINFINAL MANAGER
COLORADO SOURCEMATERIALRECOVERY
SITECLOSURE
STAFFASNEEDED; $76,80092,400 ASNEEDED,GEOTECHNICAL
FUNDEDBYLICENSEES
SEPARATE ENGINEER,CONSTRUCTION THROUGHANNUAL
MODE)
CONTRACTORS OVERSIGHT,PROCESSENGINEER, ANDHOURLYFEES
FORSUPPORTON COMMUNITYINVOLVEMENT
TWOSITES /COMMUNICATIONS
1PROGRAMMANAGER; TCEQBUDGETCANBE
1HYDROLOGIST; FOUNDHEREAND
1ENGINEER(1ADJUNCT); BROKWNDOWNBY
8STAFF,3 1GEOLOGIST; REVENUESOURCE.
SOURCEMATERIAL&SOURCE ADJUNCTSTAFFOR 4HEALTHPHYSICISTS; NOSPECIFICSOURCE
TEXAS MATERIALRECOVERY
APPROXIMATELY10
CONTRACT
NOTAVAILABLE
1ADJUNCTBIOLOGIST; MATERIALRECOVERY
EMPLOYEES 1ADJUNCTECONOMIST BUDGETIS
(ALLARENOTSPECIFICTO AVAILABLE.
SOURCEMATERIAL http://www.tceq.texa
RECOVERY) s.gov/about



C. SUGGESTEDAPPROACHFORDEVELOPMENTOFAGREEMENTSTATEPROGRAM

ThediscussionbelowincorporatesproductdeliverablesforCategory1byreference.

1. DRAFTANEMPOWERINGSTATUTEFORGOVERNORSAUTHORIZATIONTOPROCEED

First,theStateisrequiredbyNRCguidancetoenactastatuteauthorizingtheGovernor
toenterintoanAgreementwithNRC(SeeHandbookatSection4.1.1.2,page13).Asa
technicalmatter,thislegislationcanbepassedatanytimepriortotheGovernorsigningthe
Agreement,becauseNRCregulationswillnotallowtheNRCChairmantosignaSection274
AgreementwithoutauthorizationbytheStatelegislatureandtheGovernor,includingthe
necessarystaffingandfundinginplaceatthetimetheAgreementissettobesigned.Model
legislationforthisisavailableinNRCsHandbook.

ButthecandidateStatelegislaturecanavoidtheneedformultiplelegislativeactionsby
passinglegislationauthorizingthisactionaswellasallowingtheGovernortosendthe
aforementionedformalrequesttoNRC.Giventhatlegislativeprocessescanbeunpredictable,
itisrecommendedthatlegislationauthorizingthepursuitofAgreementStatestatusincludea
varietyofitemssuchascontingentlanguageauthorizingthesigningoftheAgreement.NRC
guidancehasmodellegislationandseveralexamplesofcurrentAgreementStateshaveused
similarmodellegislation.Further,thedevelopmentoftheformatandtimeframefor
rulemakingtoimplementAgreementStateregulationsshouldbepursued.Untiltheformal
AgreementisapprovedbyNRCandexecutedbytheGovernor,anysuchlegislationand
regulationsdirectlyimplementingtheprogramareunenforceable;however,itdoesstrengthen
theultimateformalrequest,ifcompleted,priortosubmissiontoNRC.

2. COMMENCECONSULTATIONSWITHINTERESTEDPARTIES

TheStateshouldimmediatelybeginconsultationswithallinterestedfederalagencies,
Congressionaldelegationmembers,andotherentitiesthatwillbepartofthenotification
process.GivingtheseentitiesadvancenoticeoftheStatesplantopursueAgreementState
statuswillensurethattransparencyismaintainedintheprocessandelectedandappointed
leadersaregivenampleopportunitytooffertheirinput.TheStateshouldconsideraseriesof
scopingmeetingstokeepinterestedstakeholdersabreastoftheprocessstatus.WhileNRCs
guidanceontheAgreementStateprocessisfairlyselfexplanatory,itstillisdensewithfacts
andrecommendationsthatmaynotnecessarilybeeasilyunderstoodbythoseunfamiliarwith
theprogram.Further,transparencyagainwillbemaintainedduringtheprocess.Itis
imperativethattheformalrequest,whenfinalized,beastronganddefensibledocumentthat
doesnotresultinrejectionduringanNRCacceptance/completenessreview.Anyrejection
likelywillresultintheexpenditureofadditionalStatebasedresourcesaswellasconsiderable
additionaltime.Asnotedabove,frequentinteractionwithNRCStaffiscritical.

Lastly,itisrecommendedthattheStateactivelyconsultwithotherrepresentativesin
existingAgreementStates,especiallytheStateofNewJerseyandCommonwealthofVirginia
(astheyarethemostrecentcandidateAgreementStates)andtheStatesofTexas,Colorado,
andUtah(astheyareStateswithactivesourcematerialrecoveryAgreementStateprograms),
aswellastheOrganizationofAgreementStates(OAS)148andtheCouncilofRadiationControl
ProgramDirectors(CRCPD)149toobtainasmuchinsightaspossibleintoallaspectsofthe
AgreementStateprocessandtoobtaininputonproposedschedules,regulations/guidance,and
asuitablefeeprogram.

3. DRAFTANEMPOWERINGSTATUTEFORAGREEMENTSTATEPROGRAM

UnlikeRecommendation1,thislegislationisthemaincomponentofaStatesabilityto
proceedwithdevelopmentofanAgreementStateprogramandpromulgationofimplementing
regulations.AllAgreementStatesarerequiredtohavetheseempoweringstatutesinplace
priortoexecutingaSection274Agreementand,assuch,modellegislationisavailableforthe
Statesuse.ThisstatutecanbeenactedbythelegislaturewithouttheexpenditureofanyState
resourcesonrulemaking,becausetheAEAprovidesNRCwithpreemptiveregulatory
jurisdictionoverAEAmaterialsandoperationsinlieuofaSection274Agreement.Thus,atits
initialstage,thisstatuteismerelymeanttoprovidetheStatewiththeabilitytoproceedwith
thedevelopmentofanAgreementStateprogramandisotherwiseunenforceable.Thisfactor
providestheStatewithampletimetoassemblethenecessaryresourcestofundAgreement
Stateprogramdevelopmentonitsowntimeline.Itisrecommendedthatthisstatutealso
includeprovisionsandfundingforrulemakingasdescribedinRecommendation4.

ThisrecommendationalsocarrieswithitarecommendationthattheStatedesignatea
leadagencyforconductingtheAgreementStateprocess.Typically,thiscanbeconductedbya
divisionofanexistingStateregulatoryentity(e.g.,WDEQ)orbyanewlycreatedentity
dependingoncurrentlyavailableregulatorystructuresandmandates.Itismoreadvisableto
designateanagencythatcanmoveforwardwithaStatestatutorymandatequicklywithoutthe
needfordelaysduetoprocedures.WDEQhastwodivisionsthatcouldconceivablytakethe
leadonthisprocess;eitherLQDorWQD.UnlesstheStatedeterminesthatanewAgreement
Stateentitywouldneedtobeformed,oneofthesetwodivisionscouldtakethelead.

AcommonthemeinthisstudyisthatacandidateStateshouldnotreinventthe
wheel,thisthemeisnotdifferentfordraftinganempoweringstatute.Asisthecasewith
sourcematerialrecoveryregulations,currentAgreementStateempoweringstatutesusedto
createAgreementStateprogramsserveasausefulmodel.Forpurposesofthisstudy,the
currentCommonwealthofVirginiaempoweringstatutewillserveasthemodel.

148
Seehttp://www.agreementstates.org/.
149
Seehttp://www.crcpd.org/.ItisalsoimportanttonotethattheCRCPDmaintainsanactiveelectronic
mailservicewherejobpostingforAgreementorotherStateradiationcontrolprogrampositionscanbe
publishedtoalargeaudience.ThisisaservicetheStateshouldconsideremployingifthedecisionto
moveforwardismade.

60

VirginiaenactedasinglestatuteinordertoprovideNRCwithadequateunderstanding
ofhowtheframeworkofitsAgreementStateprogramwouldbeconstructed.Thisstatuteis
referredtoastheRadiationControlActandinsertedintotheCommonwealthsadministrative
codeasCodeofVirginia,Section32.1277etal.150ThisportionoftheVirginiaCodelaysoutthe
statutoryprovisionsrequiredforaStatetopromulgateappropriateregulationsand,more
importantly,justifytoNRCthatitsproposedAgreementStateprogramwillbeadequateto
protectpublichealthandsafetywithanappropriateradiationcontrolandprotectionprogram.

Whilemostoftheaspectsofthisstatutorylanguagecanbebestunderstoodby
reviewingtheattachedoutlineandotherAgreementStateprogramradiationcontrolstatutes,
thefollowingitemizedlistoffersexamplesoftopicareasthatmustbeincludedinan
empoweringstatute:

(1) Definitions(e.g.,sourcematerial,11e.(2)byproductmaterial;
(2) AgreementStateauthoritysresponsibilities;
(3) EffectsoncurrentState/Commonwealthandlocalregulations;
(4) GovernorsauthoritytoenterAgreementswithfederalgovernment;
(5) Authorizationtoregulateuraniumand/orthoriumrecoveryfacilitiesincluding
disposalofmilltailings(11e.(2)byproductmaterial);
(6) Section8ofCSGsuggestedlegislation;
(7) AvoidcreationofgapsinregulationbetweenNRC&StateorintraState
agencies;
(8) AuthorizationtoissuelicensesforregulationofAEAmaterialsand/oroperations;
(9) Authorizetheuseoflicenseconditionstoregulateandtoaddresssitespecificor
licenseespecificitems;
(10) Authorizetheuseofexemptionstopermitactionsthatdonotadverselyaffect
publichealthandsafety;
(11) Authorizesuspensionorrevocationofalicenseforcontinuednoncompliance;
(12) SeeSection4.1.1.4ofNRChandbookfor11e.(2)byproductmateriallicensesat
page15.

Itisimportanttonotethatthislistisnotexhaustive,buttheexpenditureofStatebased
resourcestoconstructthisempoweringstatuteisordersofmagnitudelessthanpromulgation
ofregulations.Further,NRCStaffdoesallowforpreGovernorscertificationletterdiscussions
ondraftstatutoryandregulationlanguage.Thisisatacticaldecisionbasedonresource
availability,buttheprocessofdraftingstatutoryandregulatorylanguageshouldbeconsidered
anongoing,iterativeprocess.

150
SeeCommonwealthofVirginia,Laws,Regulations,andGuidance:RadiationLaws(hereinafter
Exhibit67).

61

4. DRAFTAGREEMENTSTATEPROGRAMREGULATIONS

AfterpassageofthelegislationidentifiedinRecommendation3,theStatecanproceed
withrulemakingtodevelopanAgreementStateregulatoryprogram.Itiswellunderstoodthat
rulemakingisnecessarytoproceedwiththeAgreementStateprocess,buttherealquestionis
howandwhentodoso.TheStatefirstshouldcreateacomparisonchartbetweenWDEQand
NRCregulationstoensurethattherearenoomissionsinthedraftregulationsandthatthe
Statedoesnotreinventthewheelwhenpromulgatingregulations.Aftercompletionofthat
chart,theStateshoulddecidewhetherresourcesareavailabletobegindraftingAgreement
StateregulationstohavethempreparedbythetimetheaforementionedRecommendation3is
enacted.ThesedecisionsshouldbemadebytheStateinadvanceandthenfactoredintothe
Recommendation5documentforbothpublicparticipationandNRCStaffconsultation
requirements.

Inaddition,itisrecommendedthattheStateconsultmodelregulationsforsource
materialrecoverycreatedbyCRCPDandmembersofOASfromAgreementStateswithsource
materialrecoveryprogramstoobtainrecommendationsfordevelopingappropriate
regulations.TheserecommendationscanbeextremelyusefulgiventhattheseStateradiation
protectionpersonnelAgreementStateshavebeeninvolvedwithdevelopmentand
implementationofradiationprotectionprogramsandsuccessfullypassedIMPEPreviewsof
suchregulationsinthepastthathavebeendeemedadequateandcompatible.

Itiscriticaltothesuccessfulcompletionofthisitemthatacrossreferencingofexisting
Statebasedregulationsbeconducted.Thiswillidentifyanygapsintheregulationsandassistin
theminimizationofresourceexpenditure.But,thisdoesnotrelievetheStateoftheneedfor
radiationprotectionregulationsandotherrelatedadministrativeprocedures.

5. DRAFTPOLICYONGUIDANCEADOPTION

AsstatedinthisSection,itisrecommendedthattheStatealsodraftapolicyon
adoptionofNRCguidanceandothernonbindingpolicies,procedures,andinterpretations.
ThisfeasibilitystudyprovidestheStatewithacomprehensivelistofguidanceandother
documentsthatcanbeevaluatedinconjunctionwithsuchapolicy.Existinglicenseesand
futurelicenseapplicantslikelywillfindthispolicyusefultoaddresstheirlicensesorlicense
applicationsinamannerthatcomportswithStateexpectationsupontransitiontoAgreement
Statestatus.ThispolicycanbesubjecttotheStatespolicyonpublicparticipationtotheextent
theStatedeemsitpracticable.Whethersuchapolicy,orportionsthereof,shouldbeincluded
inanyprospectiverulemakingisadecisionlefttotheState.

62

6. DRAFTPUBLICPARTICIPATIONPROCESSFORRULEMAKING

Finally,Recommendation6isforaStatetodraftascheduleforitsentireAgreement
Stateprocessrangingfrompreprocesspublicinteractions,whetherwithNRCStaff,interested
stakeholdersorboth,totherequiredAgreementStaterulemaking,andtoadditionalpoliciesor
proceduresdevelopedbytheStateduringtheprocess.Itisimportantthattransparencybe
maintainedinthisprocessand,duetotherecommendationofthisfeasibilitystudythat
frequentNRCandpublicinteractiontakeplace,adraftschedulefortheprocesslikelywillhelp
facilitateandeffectiveandefficientprocess.NRCStaffmeetingsgenerallyarepublicmeetings
whereinterestedstakeholdersarepermittedtoparticipate.Stateorganizedmeetings
presumablywillbepursuanttoWDEQpolicies,whichcanincludepotentialscopingmeetings
invariouspartsoftheStateandmoreinformalsessionswhereinputonAgreementStateissues
canbesolicited.

7. IDENTIFYEXISTINGMEMORANDAOFUNDERSTANDINGANDDETERMINEWHICH
NEEDUPDATING/REVISIONSANDIFNEWMEMORANDAOFUNDERSTANDINGARE
REQUIRED

TheuseofinformalStateagencyrelationshipsorMOUstoguaranteethatadequate
technicalandenvironmentalexpertiseisavailablewhenevertheAgreementStateprogram
requiresitforreviewofalicensingactionrequestorongoinglicensemaintenanceactivitiescan
beavaluablestaffingtool.TheStateofWyomingalreadymaintainsseveralMOUswithoutside
agenciessuchasEPAandBLMandwithStateagencies.Anevaluationofthecurrentviabilityof
existingMOUsandtheneedforadditionalMOUsisrecommendedtoallowWDEQtodetermine
whethertheuseofsuchMOUsandtheresourceexpendituretoreviseexistinganddevelop
newMOUs.Ifthisdirectionisnotworththeresourceexpenditure,thenAgreementState
programstaffingandbudgetingwillbeimpacted.However,asisthecaseinColorado,itmay
notbenecessarytoformalizesuchrelationshipsinMOUs;butrather,WDEQcouldsimply
negotiatepersonnelavailabilityforgiventopicareastoensureadequateexpertiseisavailable.

8. DEVELOPAFEEPROGRAMANDRULEMAKINGPROCESS

Asstatedpreviously,thefoundationforaneffectiveandviableAgreementState
programisitsfeestructure.AgreementStatesarepermittedtobudgetfortheirprogramin
anywaytheyseefit,includingthepotentialforannualStateappropriationswithouttheuseof
afeestructure.However,manyAgreementStateshavefoundsuccessmodelingtheirfee
structurewiththatofNRC.Asdiscussedabove,NRCsfeestructureismodeledontheuseof
twotypesoffees:annualandhourly.AgreementStatesuchastheStateofColoradoandthe
CommonwealthofVirginiautilizebothformsoffeesandoperateviableAgreementState
programs.ItisrecommendedthatathoroughevaluationofNRCsfeeprogramandthe
developmentofafeestructurepriortomovingforwardwiththeAgreementStateprocessbe
conducted.ThiswillprovidetheStatewithassurancesthattherewillbeadequaterevenue
availableforsuccessfuloperationoftheprogram.Thisevaluationalsoincludesadetermination

63

thatnoMiscellaneousReceiptsActequivalentexistsandthatfeescanberoutedforusebythe
AgreementStateprogram.

D. NRC&WDEQREGULATORYPROCESSOVERVIEW

Category1ofthisfeasibilitystudywillprovidetheStatewithinsightastotheexisting
andreasonablyforeseeablelicenseandlicenseamendmentapplicationsatNRCforsource
materialrecoveryfacilities.Forpurposesofthissectionofthestudy,Thompson&Pugsley,
PLLCwillrefertoaGanttchartgeneratedbyNRCStaffthatshowsthestatusofexistinglicense
applicationsfornewoperatinglicensesorlicenseamendmentsforsatelliteISRwellfieldsto
supportouranalysis.

1. AEA/NRCLICENSINGACTIONSFORSOURCEMATERIALRECOVERY

Beforeaddressingthestatusoftheselicensingactions,itisimportanttoprovidethe
Statewithanoverviewofthetypesoflicensingactionsthatcurrentlyareorcouldbebefore
NRCforsourcematerialrecovery.Again,itisimportanttonotethattheonlylicensingactions
thatarerelevanttotheStatesproposedAgreementStateprogramarelicenseandlicense
amendmentapplicationsandlicensemaintenanceactivitiesassociatedwithsourcematerial
recovery/millingandnotwhatisknownassidestreamorbyproductsourcematerialrecovery,
becausethelatterprocessesdonotresultinthegenerationof11e.(2)byproductmaterial.
AttachedtothisfeasibilitystudyisacopyofNMAs1998WhitePaperinwhichthereisa
detaileddiscussionofthelegalbasesforthispositionwhicharegroundedinUMTRCAs
legislativehistory.

Asageneralproposition,theAEA,asamended,mandatesthatNRCbeareactive
independentregulatoryagencyinthatitisnotpermittedtoactivelypromotethelicensingand
productionofAEAmaterials.Asareactiveagency,NRCwaitsforindividualentities(aperson,
companies,consortiums)tosubmitlicenseapplicationstoengageinoperationsinvolvingAEA
materials.Whenitreceivesanyformoflicensingapplication,NRCcanreviewitandactinone
ofthreeways:(1)approveinfull,(2)approvewithconditionsor(3)deny.Accordingly,under
theAEA,thelicenseeisprimarilyresponsibleforthesafemanagementofAEAmaterialsand
thesafeconductofAEAoperationspursuanttoitslicense(s).NRCretainsenforcement
authorityunderitsAEAregulationsandconductsregularinspectionstodetermineifthe
licenseeisactingincompliancewithitsissuedlicenseconditions.Standardlicenseconditions
arerequirementsimposedonalicenseeaboveandbeyondthescopeoflicenseapplicant
specificpublichealthandsafetyandenvironmentalproceduresandsafeguardsvoluntarily
committedtobythelicenseeinitslicenseapplication.Accordingly,activelicenseshavea
standardlicenseconditionthatincorporateslicenseesubmittalsandallassociated
commitmentsbyreference.

64

i. OPERATINGLICENSEAPPLICATIONS

Thefirsttypeofsourcematerialrecoverylicensingactionisastandardoperating
licenseissuedunder10CFRPart40,andAppendixACriteria.Operatinglicenseapplications
applytoallcategoriesofsourcematerialrecoveryoperations(i.e.,conventionaluranium
milling,heapleachrecovery,ISR,andconventionalthoriummilling).Asstatedabove,NRC
regulationsprescribethatanoperatinglicensesubmissionsatisfybothasafety(10CFRPart40)
andanenvironmental(10CFRPart51)review.Theseregulationsandassociatedguidance
prescribespecificrequirementsforoperatinglicenseapplicationsintermsofformandcontent,
aswellasNRCStaffreviewprocedures.Theguidancecontainsextensiveinformationon
interpretationsbyNRCStaffsolicenseapplicantshaveenoughinsightintotherequireddata
andanalysesforgrantofalicense.

AnoperatinglicenseisthebenchmarkfortheconductofAEAoperationsandthe
generationandmanagementofAEAmaterials.Inmanycases,anoperatinglicenseistheonly
licensingactionnecessarytoconductAEAoperationsatsourcematerialrecoveryfacilitiessuch
asconventionaluraniummillsandheapleachrecoveryfacilities.Insomecases,theoperating
licenseisthestartingpointforattemptinginitiationofadditionalrecoveryoperationssuchas
ISRsatellitewellfields.Dependingonthescopeofactivitiesencompassedinarequested
operatinglicenseapplication,subsequentlicenseamendmentrequestscouldinvolveproposed
newactivitiessuchasalternatefeedprocessingatconventionaluraniummillsorsatellitesat
ISRfacilities.

Eachoperatinglicenseisevaluatedonasitespecificbasisbecause,despitethe
standardizationofsourcematerialrecoverytechnologies,eachproposedlicensedsitehassite
specificconditionsthatrequireassessmentpriortotheissuanceofalicense.Asstatedabove,
NRCregulatesthroughevaluationandapplicationofsitespecificlicenseconditionsbutitalso
utilizesprogrammaticguidancesuchasgenericenvironmentalimpactstatementstominimize
unnecessarilyduplicativereviewsinvolvinggenerallyacceptableoperatingconditions.

ii. LICENSEAMENDMENTAPPLICATIONS

Licenseamendmentapplicationsaresubmittedbyexistinglicenseesforavarietyof
reasons,includingbutnotlimitedto,changingfacilitydesign,increasingproductionoutput,
expandingexistinglicensedsitefootprints,andchangesinoperatingplansfromtheoriginal
licenseapplicationandlicenseconditions.Thetablebelowidentifiesacomprehensive,butnot
necessarilyexhaustive,listofpotentiallicenseamendments.Forpurposesofthisfeasibility
study,thetablewillidentifybothadministrativeandmajoramendmentsor,insomecases
whererequestedactionscouldbebothdependingonthesitespecificcircumstances.An
administrativeamendmenttoanexistinglicenseisnotdeemedtorequireaformallicense
amendmenteventhoughtheydoamendaportionofanexistinglicense;whereas,amajor
amendmentunderNRCregulationstriggersarequirementforaformaltechnicalreviewunder

65

10CFRPart40andAppendixAandanenvironmentalreview(suchasanEAonafindingofno
significantimpact(FONSI)under10CFRPart51).Dependingonthemagnitudeofthemajor
amendment,afulltechnicalandenvironmentalreviewcanrequiremoreresourcesthanoneof
lessmagnitude.However,regardlessofwhattypeofamendmentitis,eachonewillrequire
theexpenditureofStatebasedresourcestoevaluate,process,andultimatelyapprove,approve
withconditionsordisapprove:

66

TABLE2: LICENSEAMENDMENTREQUESTSBYTYPEANDLEVEL(REPRESENTATIVEEXAMPLES)

AMENDMENTREQUEST FACILITYTYPE MAJORORADMINISTRATIVEORBOTH

ACLS ALL MAJOR

SATELLITEWELLFIELDADDITIONS ISR MAJOR

DEPENDSONTHEUPGRADEANDWHETHERITFALLS
FACILITYUPGRADES ALL
UNDERPERFORMANCEBASEDLICENSECONDITION

INCREASEINANNUALPRODUCTIONLIMIT ALL MAJOR

WELLFIELDPACKAGE(REVIEW) ISR ADMINISTRATIVE

WELLFIELDPACKAGE
ISR ADMINISTRATIVE
(REVIEWANDVERIFICATION)
WELLFIELDPACKAGE
ISR LICENSEAMENDMENT/ADMINISTRATIVE
(REVIEWANDAPPROVAL)

SITEDECOMMISSIONINGPLANS ALL MAJOR

GROUNDWATERRESTORATION ISR SEEACL

NEWTAILINGSIMPOUNDMENTS CONVENTIONAL(HEAPLEACH) MAJOR

SITECLOSURE/LICENSETERMINATION ALL MAJOR

iii. LICENSERENEWALS

GiventhattheAEAauthorizesNRCanditsAgreementStatestoregulatethroughthe
issuanceoflicenses,151bothNRCanditsAgreementStatesmustdeterminethedurationofany
licenseseffectiveness.Currently,allAEAlicensesarelimitedintimerangingfromuptotwenty
(20)additionalyears(fromanoriginalforty(40)yearoperatinglife)fornuclearpowerreactors
toten(10)yearsforsourcematerialrecoveryfacilities.Withrespecttosourcematerial
recoverylicenses,upuntilthelate1990s,suchlicenseswereissuedbyNRCasfive(5)year
licenses.Then,NRCamendeditslicensetimeframeandextendedsuchlicensestoten(10)year
timeframes.Duetothelimitedtimeframesassociatedwiththeselicensesandthefactthat
manyprojectlifecycleswillexceedthatinitialtimeframe(giventhat12yearsormorecanbe
neededtoconstructandputthefacilityintooperationandvaryingtimeframeswillberequired
forD&Dandlicensetermination),NRClicensesaresubjecttoapplicationstorenewthe
existinglicenseforafurther10yearperiod.

NRCsguidanceforitssourcematerialrecoverylicenseesdoesnotspecificallyaddress
therequirementsoflicenserenewalapplicationsingreatdetail.However,thegeneral
approachforlicenseespreparingsuchapplicationsisthattheyshouldaddresstwosubjects:(1)
acomparisonbetweenthatwhichwasproposedandapprovedintheinitialoperatinglicense
applicationandthatwhichhasoccurreduptotheendofthelicenseterm;and(2)thelicensees
projectionsgoingforwardwithexistingoradditionaloperationsfromthepointoflicense
renewaluntiltheexpirationofthenextlicensetermof10years.NRCcurrentlyhasseveral
licenserenewalapplicationsbeforeitinvaryingstagesofreview.Itisanticipatedthatthese
licenserenewalswillbeapprovedbyNRCpriortotransitiontoanyWyomingAgreementState
program.However,evengiventhepotentialfive(5)yearAgreementStateprocessand
dependingonissuanceoftheselicenserenewals,theStatelikelycouldexpectseverallicense
renewalapplicationsinthefirst45yearsasanAgreementState.Thetablebelowshows
licenserenewalscurrentlybeforeNRCandanticipateddecisiondates,aswellasdatesfor
issuanceofnewlicensesassumingadecisionin2014topursueAgreementStatestatusanda5
yearprocess(projectingto2019):

151
WhileSA700requiresthataproposedAgreementStatesempoweringstatuteincludelanguagethat
specificallyauthorizestheStatetoregulateAEAmaterialsandoperationsthroughtheissuanceof
licenses,AgreementStatesareallowedtoissuepermits.Forpurposesofthisstudy,theterms
licenseandpermithavebeenandwillcontinuetobeusedinterchangeably.

TABLE3: PROJECTEDLICENSERENEWALS

LICENSED RENEWALISSUED PROJECTEDNEXT


COMPANYNAME LICENSETYPE
FACILITY ORANTICIPATED RENEWALFILING

CurrentRenewal
PowerResources,Inc.d/b/a
SmithRanchHighland ISR Anticipatedin2015 20252026
CamecoResources
2016

UraniumOneAmericas WillowCreek ISR Issuedin2013 Anticipatedin2023

UraniumOneAmericas MooreRanch ISR Issuedin2010 Anticipatedin2020

UranerzEnergyCorp. Hank&NicholsRanch ISR Issuedin2011 Anticipatedin2021

UrEnergy/LostCreekISR,LLC LostCreek ISR Issuedin2011 Anticipated2021

AnticipatedIssuance
StrataEnergy,Inc. Ross ISR in2024(InitialLicense Anticipatedin2024
Issuance)
AnticipatedIssuance
AUC,LLC RenoCreek ISR in2015(InitialLicense Anticipatedin2025
issuance)

Conventional
KennecottUraniumCompany Sweetwater Renewedin2006 Anticipated2016
(Standby)

AnticipatedIssuance Anticipated2026
EnergyFuelsResources SheepMountain HeapLeach
in201617 2027

UrEnergy ShirleyBasin Conventional/ISR Active NotYetKnown

70

Withallthissaid,thisfeasibilitystudystronglysuggeststhatiftheStatedecidestoseek
AgreementStateStatus,WDEQshouldmakeaconcertedefforttonotreinventthewheel
whenconstructinganAgreementStateprogram.Thefirstandmostobviouswaytoconstruct
suchaprogramefficientlyistohaveacompleteunderstandingofNRCsregulatoryprogram
andtotrytomirrorthesubstanceandproceduresofthatprogram.FromThompsonand
Pugsley,PLLCspointofview,NRCregulatesitssourcematerialrecoverylicenseesusing(1)
regulations;(2)guidance,policystatements,andotherinterpretativemechanisms;and(3)
inspectionandenforcement.Eachofthesewillbediscussedingreaterdetailbelow;and,
hopefully,itwillbecomeapparentwhyThompson&Pugsley,PLLC,stronglysuggestsWDEQ
toconstructanyAgreementStateprogramtomirror,ascloselyaspossible,NRCsapproach
toitsregulations,anditsinterpretationsofthoseregulationsshouldtheStatedetermineto
proceed.

2. NRCREGULATORYFORMAT:HOWNRCREGULATES

Asdiscussedabove,thereareawidevarietyofpotentiallicensingactionrequestsfor
sourcematerialrecoveryfacilitiesthataresubmittedtoNRCStaffforreviewunderthree
categories:(1)operatinglicenses;(2)licenseamendments;and(3)licenserenewals.However,
eachofthesethreelicensingactionrequestsaresubjecttoacomprehensive,robustregulatory
regimethathasevolvedovermorethanthirtyfive(35)yearssincethepassageofUMTRCA.

i. FEDERALREGULATIONS

TheCommissionimplementsthestatutoryauthorityreflectedinCongressmandatein
theAEA,asamended,throughpromulgationofregulations.ThroughCommissionsanctioned
rulemakingprocesses,theseregulationsarepromulgatedtoensurethatuseofAEAmaterials
andconductofAEAoperationsbylicenseeswillbeadequatelyprotectiveofpublichealthand
safetyandtheenvironment.Commissionregulationsarepromulgateduponitsowninitiative,
peradirectivefromCongressand,insomecasesperapetitionforrulemakingbyaninterested
stakeholder(e.g.licensees,tradeassociations,andmembersofthepublic).Further,some
regulationscanbeimpactedbyfurtherrulemakingprocessestoclarifyanexistingregulationor
byCommissiondecisionsinterpretingregulationsinadministrativelitigation.Generally,
however,NRCregulationsaresubjecttothetraditionalrulemakingprocessesinvolvingan
advancenoticeofproposedrulemaking(ANPR),aproposedrulewithoralandwrittenpublic
commentopportunities,environmentalevaluation,andafinalruleincludingafinal
environmentalevaluationandresponsestopubliccomments.Totheextentnecessary,newor
amendedregulationsmaybeaccompaniedbyinterimstaffimplementationguidance.

Withrespecttosourcematerialrecovery,NRCregulationsthataredirectlyapplicableto
theentiretyoftherecoveryprocessareasfollows:(1)10CFRPart40sourcematerial
regulationsandAppendixACriteriaforsourcematerialrecoveryfacilities;(2)10CFRPart20
radiationprotectionregulations;(3)10CFRPart71transportationrequirementstotheextent

theysupplementDOTregulations;(4)10CFRPart51environmentalreviewregulations152and
(5)10CFRPart170and171feeregulations.153

a. NRCREGULATIONS:10CFRPART40

Beginningwith10CFRPart40,theseregulationscanbeandareapplieddirectlytothe
regulationofsourcematerialand,totheextentappropriate,sourcematerialrecoveryfacilities.
SomeportionsofthePart40regulations(excludingAppendixACriteria)arenotnecessarily
relevanttoregulationofsourcematerialrecoveryfacilitiesand,assuch,neednotbeadopted
byanAgreementStateseekingonlyauthoritytoregulatesuchfacilities.Aspartofits
AgreementStateprogramandasisthecasewith10CFRParts20and71,NRCStaffhascreated
severalcompatibilitychartsthatidentifywhichcompatibilitycategoriestheseregulationsfall
undersothattheStatecanadopttheseregulationsdirectlyorinappropriateformintoits
AgreementStateregulations.Generally,itisrecommendedthatanyCompatibilityAorB
regulationbedirectlyadoptedverbatimintotheStatesproposedregulationswhen
constructingaprogram.

b. NRCREGULATIONS:APPENDIXACRITERIA

AppendixACriteriain10CFRPart40,AppendixAweredesignedspecificallytoaddress
regulationofuraniumrecoveryfacilities.Atthetimeoftheirpromulgationtheywerefocused
onregulatingconventionaluraniummills/heapleachfacilities,becauseatthattime
conventionaluraniummillingwastheprimaryformofsourcematerialrecoverywhileISRwas
moreinitsinfancystage.ThisfactisevidencedinNRCs1980GEISwhichspecificallystatesthat
ISRisidentifiedinthestudyonlyforcompletenessandwasnotconsideredtobeaprimary
formofuraniumrecovery.AppendixAisdesignedtoprovideforflexibilityinthe
implementationofitsCriteriaduetothehighlysitespecificnatureofconventionaluranium
mills/heapleachfacilities.Onehallmarkofthisflexibilityistheideathaturaniumrecovery
licenseescanproposealternativestoanyoftherequirementsintheCriteriasolongasthey
provideforatleastasstringentprotectionofpublichealthandsafety.154

152
10CFRPart51regulationsarediscussedindetailinSectionI(D)(3)(vi)below.
153
UndertheOBRAof1990,NRCiscurrentlyrequiredtorecover90percentofitsannualbudgetfrom
feesassessedtolicensees.Theremaining10percentisdeemedtobediscretionaryfundsthatthe
Commissionmayallocateonitsown.Forexample,in2005,theCommissionallocateddiscretionary
resourcestobeusedbyNRCStaffindevelopingNUREG1910ortheISRGEIS.
154
Thepreambleto10CFRPart40,AppendixA(Exhibit61)specificallystatesthatAppendixACriteria
weredesignedtoallowflexibilitywithrespecttocompliancewithitsrequirements.Thisflexibility
allowsforalternativestobeproposedbylicenseesbasedonsitespecificcircumstances.Anexample
ofthisisWNIsNRClicensedTitleIIuraniumrecoverysite(SplitRock)nearJeffreyCity.Foravarietyof
reasons,WNIwasrequiredtoconductdetailedgroundwatermodelingongroundwatertoproperly
determinewhereitsfinalLTSBwouldbelocated.However,giventhattheclosureplanrequiredasite
boundaryencompassingsignificantlymorepropertythantheoriginallicensedarea,theCommission
requiredWNItomakegoodfaitheffortstoacquireeitherfeetitletoordurableinstitutionalcontrolson

72


Priortotherecentrenaissanceofuraniumrecoveryapplications,NRCStaff
traditionallyappliedAppendixACriteriatoISRfacilitiesasappropriatebecause,asstated
above,theCriteriainitiallywereintendedtoapplytoconventionaluraniummills/heapleach
facilities.ThemechanismusedbyNRCStafftoimplementrequirementsasappropriatesuch
asfinancialassuranceandgroundwaterrestorationhasbeensitespecificlicenseconditions.
However,recentlytheCommissiondeterminedthatCriterion5(B)(5)forgroundwater
protectionisapplicabletoallISRfacilities.

SinceAppendixACriteriaserveasthebenchmarkforregulationofuraniumrecovery
facilities,itisstronglyrecommendedthataStateconsideradoptingAppendixACriteria
verbatim.155ThevastmajorityofAppendixACriteriafallundercompatibilitycategoriesthat
requirelanguagebeessentiallyidenticalorwherechangescouldpotentiallycauseahealthand
safetyissue.ChangingthelanguageoftheseCriteriapotentiallycouldleadtheStateto
negativecompatibilityfindingsinanIMPEPrevieworconflictswithcriticalNRCpolicyor
guidancerelevantthereto.TheStateofColoradocurrentlyregulatessourcematerialrecovery
withfullyincorporatedAppendixACriteria.Wyomingalsoshouldensurethatverbatim
adoptionoftheseregulationsisdoneinawaythatallowsforadequatetimetoreviewany
revisionstosuchregulations,appropriatelytrainitspersonnel,andconductarulemakingto
adopttheirlanguageintoStateregulations.ConsultationwithNRCStaffonthisishighly
recommended.

ThereisapossibilitythatWDEQregulationsforPermitstoMinemayinclude
requirementsthatmirrorcurrentNRC10CFRPart40requirements.Totheextentthatthese
existingrequirementsmirrorNRCsregulationsandareatleastasstringentassuchregulations,
theStatecanconsiderevaluatingitsregulationstodetermineiftheyshouldremaininplace
withoutchangeasAEAbasedregulations.TotheextentthatWDEQdoesnothaveregulations
currentlyinplacethatmirrorNRCregulations,WDEQshouldevaluatethecompatibility
requirementsinthecompatibilitychartsanddetermineifverbatimadoptioniswarranted.In
mostscenarios,verbatimadoptionishighlyrecommendedtoavoidcomplicationsassociated
withoversightofexistinglicensesandtoensurenonegativefindingsinanIMPEPinspection.

c. NRCREGULATIONS:10CFRPART20RADIATIONPROTECTIONREGULATIONS

Withrespectto10CFRPart20,thesearetheCommissionsprogrammaticregulations
forradiationprotectionfrombothapublicandoccupationaldoseperspective.NRCStaff
directlyapplies10CFRPart20regulationstosourcematerialrecoveryfacilitiesandrequires

landswithinthisproposedLTSB.Thecombinationofthisgroundwatermodel,previouslyapproved
ACLs,andpropertyacquisitions/durableinstitutionalcontrolsservesasanidealexampleofanAppendix
Aalternative.
155
OnepossibleareaforvariationswouldbetheadditionofsomeISRspecificcriteriaaswasconsidered
inthelate1990swhenNRCdelayedapotentialrulemaking,includingsomespecificallyforISR,atthe
requestofNMAduetothefinancialcircumstancesoftheuraniumrecoveryindustryatthetime.

73

thatitslicenseapplicantsdemonstratethattheirlicensedactivitieswillmeetallrelevantpublic
andoccupationaldosestandardsandthatitslicenseesdemonstratethroughsemiorannual
reportingthattheselicensedactivitiesare,indeed,meetingtheserequirements.

TheprimarydifferencebetweenanAEA/NRCregulatoryprogramandaStatebased
miningprogramthatdoesnothaveAgreementStateauthorityisthatthelattergenerallydoes
nothaveanAEAmaterialspecificradiationprotectionprogram.Thus,itisstrongly
recommendedthattheStateconsideradopting10CFRPart20requirementsverbatimtothe
maximumextentpracticable.AfterconsultingNRCscompatibilitychartforPart20,itis
evidentthatthevastmajorityofdefinitionsandregulatoryrequirementsfallunderthe
CompatibilityAcategory,andthus,requireessentiallythesamelanguageinanAgreement
StateprogramasinPart20.Morespecifically,themajorcomponentsof10CFRPart20.1301
fordosetoindividualmembersofthepublicandworkersallareCompatibilityA
requirementsandsincetheymustbeadoptedwithessentiallyidenticallanguagetoNRCs,it
wouldbeeasiesttoadoptidenticallanguage.

d. NRCREGULATIONS:10CFRPART71TRANSPORTATIONREGULATIONS

10CFRPart71regulationsareNRCsimplementationoftransportationrequirementsfor
AEAmaterials.TheseregulationsessentiallyarereflectiveofDOTrequirementsforAEA
materialsthatfallintospecificclassesofDOTregulatedmaterials.Licenseapplicantsfornew
operatinglicensestypicallycertifythattheywillfollowtheseregulationsandDOTregulationsin
amannerwhichisappropriate.NRCsuraniumrecoverywebsitedoesnotspecificallymention
10CFRPart71regulationsasdirectlyapplicabletosourcematerialrecoveryfacilities,butthey
areapplicabletoalimitedextent.ItisrecommendedthattheStateevaluateitsexisting
regulationswithrespecttotransportationanddeterminetowhatextentPart71regulations
canbeincorporatedintoanyAgreementStateprogram.

e. NRCREGULATIONS:10CFRPART170&171FEES

Withrespectto10CFRParts170171,theseregulationsarecriticalelementsofNRCs
regulatoryprogram,becausetheysetforththefeestructurethatalllicenseapplicantsand
licenseesmustfollowwhenhavinglicenseapplicationsreviewedandapprovedorwhen
operatingalicensedfacilityand/orgeneratinglicensedmaterial.Asstatedpreviously,NRC
sustainsitsregulatoryprogrambyreceivingappropriationsfromCongressannually,whetherin
theformofaCongressionalappropriationoraspartofacontinuingresolution.NRCsbudgetis
thenfactoredintoitsplanstoaddressitscurrentlicenses,licensesthatmaybeterminatedina
givenfiscalyear,andforecastsofnewlicensingactionrequests.Attheendofitsbudgetary
analysis,NRCisrequiredbyOBRAtorecover90percentofitsbudgetfromitslicenseesand
licenseapplicants.

74

NRCsfeestructureinvolvestwotiers:(1)annualfeesand(2)hourlystafffees.10CFR
Part170setsforththehourlyratesforNRCStaffpersonnelwhendealingwithexistingor
proposedlicensees.Currently,pursuantto10CFRPart170.20,thehourlyrateforNRCStaff
personnelis$274perhour.Thesefeesarechargedfor(1)licenseandlicenseamendmentand
renewalreviews;(2)preapplicationmeetings/presubmissionaudits;(3)siteinspections;(4)
groundwaterrestorationreviews;(5)decommissioningplanreviews;and(6)titletransferto
longtermcustodian.10CFRPart170.31alsomandatesthatthishourlyrateappliestoalltypes
ofsourcematerialrecoveryfacilities.10CFRPart170.32statesthatinspectionsandother
healthandsafetyitemsassociatedwithagivenlicensewillbechargedatthefullhourlyrate.
NRCissuesinvoiceswiththeaggregateoffeesbilledtolicenseapplicantsorlicenseesona
quarterlybasisand,pertheMiscellaneousReceiptsAct(31U.S.C.3302),thereceivedfeesare
requiredtobedepositedintotheGeneralFundofthefederalTreasuryforappropriationby
Congress.

SeveralcurrentAgreementStates,whetherregulatingsourcematerialrecoveryfacilities
and/orotherAEAmaterialsoroperations,haveimplementedfeeprogramsthatareroughly
similartothestructureofNRCwithrespecttothetwotiers(i.e.;hourlyandannualfees).
TheseprogramstypicallyareimplementedpursuanttotheStatesapplicablerulemaking
requirementsaspartofthetotalAgreementStateprogramregulatorypackage.Thisstudy
recommendsthataStatenotaddresstheAgreementStateregulatorypackageinparts.Thefee
programfortheStateofColoradoisattachedasanexampleasExhibit4.IftheStatedecidesto
pursueAgreementStateStatusitisstronglyrecommendedtoadoptanapproachsimilartothat
usedbytheseStatesandNRC.

Typically,NRCconductsaParts170171rulemakingonanannualbasistoeither
maintainorrevisetheirannualandhourlyfeesinaccordancewiththeprojectedamountof
licensingworkforallphasesofthenuclearfuelcycle,industrialandmedicaluse,andother
AEAbasedmaterialsandoperations.SinceNRCisrequiredbyfederalstatutetorecoverninety
(90)percentofitsbudgetthroughfees,eachyearNRCStaffmustcraftarulemakingreconciling
theaforementionedprojectedlicensingworkwithitsbudget.However,theStateisfree,
absentStatestatute(s)tothecontrary,tostructureitsfeeprogramtomeetitsbudgetaryneeds
whatevertheymaybe.AfactorinthisapproachiswhenandhowoftentheStateshould
conductarulemakingtoadjustthefeestructureaccordingly.TheStateisfreetoconduct
rulemakingsatitsdiscretion,againabsentStatestatutetothecontrary,butitwouldbe
prudenttoconsidertheconductofsuchrulemakingoneitheranannualorbiannualbasisorto
provideforadministrativeauthoritytoadjustfeesinaccordancewithstatutoryguidelinesin
theempoweringstatuteforcreatinganAgreementStateprogram.AsdiscussedinSectionIII(B)
below(MarketConditions)andasisthecaseinmanyinstances,thepotentialforincreasesor
decreasesintheflowofproposedlicensingactionsandlicensemaintenanceactionsislargely
uncertain.Thus,unlessanduntilmarketconditionsbecomemorecertain,Thompson&
Pugsley,PLLCstronglysuggeststhattheStateconsiderannualrulemakingsorastatutory
grantofadministrativeauthoritytodetermineandadjustfeesaspartofitsoverallstrategyif
itdecidestomoveforwardwiththeAgreementStateprocess.

75

AfinalitemonfeesthattheStateshouldbeawareofistheaforementionedfederal
MiscellaneousReceiptsAct.ManyStateshaveStatebasedequivalentsofthisstatutethat
prohibitearmarkingoffundsreceivedand,instead,mandatedepositofmoniesreceivedby
theStateintoitsgeneraltreasuryfundpendingappropriationbythelegislature.Accordingly,it
issuggestedthattheStateinquirewiththeAttorneyGeneralsofficetodeterminefirstifa
Statebasedequivalentofthisfederalstatuteexists,second,ifAgreementStateprogramfees
receivedcanbeearmarkedunderthecurrentstatuteforoperationoftheprogramand,third,
ifsuchfeescannotbeearmarkedundercurrentWyomingstatutes,whethertheempowering
statutenecessaryforbecominganAgreementStatecanbestructuredtocontainlanguage
specificallydirectingthatsuchfeesbeusedtofundmaintenanceandoperationofthe
AgreementStateprogram.

3. NRCGUIDANCE,POLICYSTATEMENTS,ANDOTHERREGULATORYINTERPRETATIONS

Tofacilitateathoroughunderstandingofitsregulationsandhowtheyaretobe
implementedNRCprovidesitslicenseapplicantsandlicenseeswithguidance,policy
statements,andotherinterpretationsofitsregulations.

i. NRCGUIDANCE

Commissionapprovedguidancedocumentsaredesignedessentiallytoprovide
approvedformatandsubstancerecommendationsonavarietyofitemssuchasoperating
licenseapplicationsforallsourcematerialrecoveryfacilities,milltailingsimpoundmentdesign
criteria,ACLlicenseamendments,siteD&Dplans,soilandgroundwatersampling,andalternate
feedprocessing.NRCguidancedocumentscomeinavarietyofformssuchas:(1)NUREGs
developedbyNRCStaff,Staffcontractorsorotherexpertentities;(2)RegulatoryGuides;and
(3)StandardReviewPlans(SRP),NRCguidancedocumentsarenotconsideredtobebindingon
AgreementStatesastheyarenotregulationsandarenotassignedacompatibilityclassification
forpurposesofNRCIMPEPreviews.However,inmanycases,theinformationofferedin
guidance,especiallySRPsforoperatingorotherlicenseapplicationscanberelevanttowhether
theAgreementStateprogramisimplementingNRCregulationsinacompatiblemanner.

NRCswebsitemaintainsacompletedatabaseofallrelevantguidancedocuments
associatedwithasourcematerialrecoveryprogram.ListedintheTablebelowareguidance
documentsthatarerelevanttosuchaprogram:

76

TABLE4: NRCGUIDANCEDOCUMENTS156
DOCUMENT
DOCUMENTCODE DOCUMENTNAME FACILITYTYPE&PURPOSE
TYPE
GENERICENVIRONMENTALIMPACTSTATEMENTONURANIUM NRCPREPARED CONVENTIONALURANIUMMILLS
NUREG0706
MILLING NUREG(GENERICEIS) ANDHEAPLEACHFACILITIES

NRCPREPARED SEMIANNUALDESCRIPTIONOF
NUREG0936 NRCREGULATORYAGENDA
NUREG RULEMAKINGACTIONS

STANDARDREVIEWPLANFORINSITULEACHURANIUM NRCPREPARED OUTLINEOFFORMATANDCONTENT


NUREG1569
EXTRACTIONLICENSEAPPLICATIONS NUREG OFISRLICENSEAPPLICATIONS

STANDARDREVIEWPLANFORTHEREVIEWOFARECLAMATION OUTLINEOFCONVENTIONAL/HEAP
NRCPREPARED
NUREG1620 PLANFORMILLTAILINGSSITESUNDERTITLEIIOFTHEURANIUM LEACHRECLAMATIONPLAN
NUREG
MILLTAILINGSRADIATIONCONTROLACTOF1978 APPLICATIONS

DESIGNOFEROSIONPROTECTIONFORLONGTERM NRCPREPARED MILLTAILINGSIMPOUNDMENT


NUREG1623
STABILIZATION NUREG GUIDANCEFORFINALSITECLOSURE

OUTLINEFORENVIRONMENTAL
ENVIRONMENTALREVIEWGUIDANCEFORLICENSINGACTIONS NRCPREPARED
NUREG1748 REPORTSFORLICENSE
ASSOCIATEDWITHNMSSPROGRAMS NUREG
APPLICATIONS.

GENERICENVIRONMENTALIMPACTSTATEMENTFORINSITU NRCPREPARED GENERICEISFORISRLICENSE


NUREG1910
LEACHURANIUMMILLINGFACILITIES NUREG(GENERICEIS) APPLICATIONSANDREVIEWS

GUIDANCEFORCONVENTIONAL
REGULATORYGUIDE STANDARDFORMATANDCONTENTOFLICENSEAPPLICATIONS
REGULATORYGUIDE MILLANDHEAPLEACHFACILITY
3.5 FORURANIUMMILLS
LICENSEAPPLICATIONS

GUIDANCEFORCONVENTIONAL
REGULATORYGUIDE PREPARATIONOFENVIRONMENTALREPORTSFORURANIUM MILLENVIRONMENTALREPORTS
REGULATORYGUIDE
3.8 MILLS (TOBEUSEDINTANDEMWITH
NUREG1748)

REGULATORYGUIDE DESIGN,CONSTRUCTION,ANDINSPECTIONOFEMBANKMENT GUIDANCEFORIMPOUNDMENT


REGULATORYGUIDE
3.11 RETENTIONSYSTEMSATURANIUMRECOVERYFACILITIES DESIGNINLICENSEAPPLICATIONS

156
ThislistofNUREGandRegulatoryGuidedocumentsisnotintendedtobeexhaustive.


DOCUMENT
DOCUMENTCODE DOCUMENTNAME FACILITYTYPE&PURPOSE
TYPE
STANDARDFORMATANDCONTENTOFLICENSEAPPLICATIONS,
REGULATORYGUIDE LICENSEAPPLICATIONSFORMAT
INCLUDINGENVIRONMENTALREPORTS,FORINSITUURANIUM REGULATORYGUIDE
3.46 GUIDANCE
SOLUTIONMINING
CALCULATIONALMODELSFORESTIMATINGRADIATIONDOSES HEALTHPHYSICSGUIDANCEFOR
REGULATORYGUIDE
TOMANFROMAIRBORNERADIOACTIVEMATERIALSRESULTING REGULATORYGUIDE SOURCEMATERIALRECOVERY
3.51 FROMURANIUMMILLINGOPERATIONS FACILITIES
GENERALGUIDANCEFORDESIGNING,TESTING,OPERATING, HEALTHPHYSICSGUIDANCEFOR
REGULATORYGUIDE
ANDMAINTAININGEMISSIONCONTROLDEVICESATURANIUM REGULATORYGUIDE SOURCEMATERIALRECOVERY
3.56 MILLS FACILITIES
HEALTHPHYSICSGUIDANCEFOR
REGULATORYGUIDE METHODSFORESTIMATINGRADIOACTIVEANTOXICAIRBORNE
REGULATORYGUIDE SOURCEMATERIALRECOVERY
3.59 SOURCETERMSFORURANIUMMILLINGOPERATIONS
FACILITIES
ONSITEMETEORLOGICALMEASUREMENTPROGRAMFOR
REGULATORYGUIDE GUIDANCEFORENVIRONMENTAL
URANIUMRECOVERYFACILITIESDATAACQUISITIONAND REGULATORYGUIDE
3.63 REPORTS
REPORTING
DEISGNANDHEALTHPHYSICS
REGULATORYGUIDE CALCULATIONOFRADONFLUXATTENUATIONBYEARTHEN
REGULATORYGUIDE GUIDANCEFORMILLTAILINGS
3.64 URANIUMMILLTAILINGSCOVERS
IMPOUNDMENTS
HEALTHPHYSICSGUIDANCEFOR
REGULATORYGUIDE RADIOLOGICALEFFLUENTANDENVIRONMENTALMONITORING
REGULATORYGUIDE SOURCEMATERIALRECOVERY
4.14 ATURANIUMMILLS
FACILITIES

REGULATORYGUIDE
APPLICATIONSOFBIOASSAYFORURANIUM REGULATORYGUIDE GUIDANCEONURANIUMTESTING
8.11

REGULATORYGUIDE
BIOASSAYATURANIUMMILLS REGULATORYGUIDE GUIDANCEONURANIUMTESTING
8.22
HEALTHPHYSICSGUIDANCEFOR
REGULATORYGUIDE
HEALTHPHYSICSSURVEYSINURANUMRECOVERYFACILITIES REGULATORYGUIDE SOURCEMATERIALRECOVERY
8.30 FACILITIES

78

INFORMATIONRELEVANTTOENSURINGTHATOCCUPATIONAL HEALTHPHYSICSGUIDANCEFOR
REGULATORYGUIDE
RADIATIONEXPOSURESATURANIUMRECOVERYFACILITIESWILL REGULATORYGUIDE SOURCEMATERIALRECOVERY
8.31 BEASLOWASISREASONABLYACHIEVABLE FACILITIES

79

Asstatedabove,whiletheseguidancedocumentsarenotassignedanindividualcompatibility
codebyNRCStaff,theydohaveadirectrelationshipwithNRCStaffsinterpretationofwhatis
requiredforlicenseapplications,ongoingoperations,andfinalsiteD&D.Someguidance
documentshavemoreofadirectconnectionthanothers.Itisstronglyrecommendedthatthe
Stateconsiderafullevaluationofeachrelevantguidancedocumentandtheconnectionitmay
havetoregulatingsourcematerialrecoveryfacilitiestoassuremaintenanceofanadequateand
compatibleAgreementStateprogram.Totheextentthatcertainguidancedocumentshavea
strongconnectiontosatisfyingNRCcompatibilityrequirements,aStateshouldconsiderfullor
substantialincorporationofsuchguidanceintoitsAgreementStateprogram.157

ii. NRCPOLICYSTATEMENTSANDOTHERREGULATORYINTERPRETATIONS

WithrespecttoPolicyStatementsandotherregulatoryinterpretations,these
documentsareconsideredtobeeithertheCommissionspolicystatementsassociatedwith
regulationofAEAmaterialsandoperationsorNRCStaffsinterpretationofregulations.These
documentsalsocomeinavarietyofdifferentformsincluding,butnotlimitedto:(1)Policy
Statements;(2)RegulatoryIssueSummaries(RIS);and(3)GenericCommunications.

Thesedocumentstypically,asisthecasewithguidancedocuments,arenotconsidered
tobebindingonAgreementStates,andthus,theyneednotbeadoptedinfullorinpartby
suchStates.However,thesedocumentscontaininterpretationsthatdirectlyaffectNRC
regulatoryoversightandgenerallyarecreatedwithdirectinvolvementofNRCsOfficeof
GeneralCounsel(OGC).ThetablebelowshowsapreliminarylistofthePolicyStatementsand
otherregulatoryinterpretationsthatarerelevanttosourcematerialrecoveryprograms:

157
Asdiscussedabove,oneguidancedocumentthathasauniquerelationshipwithNRCregulationsand
potentialcompatibilityrequirementsistheAlternateFeedGuidance.Asstatedabove,thiswas
developedasguidance,butitsviabilitywasendorsedinadministrativelitigationbeforetheLicensing
BoardandtheCommission.Thus,whetheranAgreementStatewouldberequiredtoadoptthis
particularguidanceornotisaquestionthatneedstobeaddressedintheAgreementStateprocessorin
advanceofsuchprocess.

TABLE5: NRCPOLICYSTATEMENTSANDREGULATORYINTERPRETATIONS

DOCUMENT DOCUMENT FACILITYTYPE&


DOCUMENTNAME

CODE TYPE PURPOSE


NRCPolicyRegardingSubmittalOfAmendmentsFor
RegulatoryIssue
RIS1206 ProcessingOfEquivalentFeedAtLicensedUranium
Summary
ISR
RecoveryFacilities

RegardingLongTermSurveillanceChargeforConventional
RegulatoryIssue Conventional/Heap
RIS1111 orHeapLeachUraniumRecoveryFacilitiesLicensedUnder
Summary Leach
10CFRPart40

LicensingApproachForUraniumInSituRecoveryFacility RegulatoryIssue
RIS0914 Applications Summary
ISR

UraniumRecoveryPolicyRegardingSitePreparation
RegulatoryIssue
RIS0912 ActivitiesAtProposed,UnlicensedUraniumRecovery
Summary
All
Facilities

UraniumRecoveryPolicyRegarding:(1)TheProcessFor
SchedulingLicensingReviewsofApplicationsForNew
RegulatoryIssue
RIS0905 UraniumRecoveryFacilitiesAnd(2)TheRestorationOf
Summary
All
GroundwaterAtLicensedUraniumInSituRecovery
Facilities

AsisthecasewithNRCguidancedocuments,itisstronglyrecommendedthattheState
evaluateeachoftherelevantdocumentstoassessthepotentialimplicationsassociatedwith
adoptingordecliningtoadoptthemforanyAgreementStateprogram,althoughtheStateis
notconfinedtosimplyacceptingorrejectingthesePolicyStatementsorotherinterpretations.
SuchdocumentscanbeincorporatedinpartorsuggestedbytheStatetoitslicenseesforusage
solongasitisdoneinaccordwithAgreementStateprogramrequirements.

iii. MEMORANDAOFUNDERSTANDING

NRCanditsAgreementStatesalsofrequentlyutilizeMOUstocooperatewithfederal
andStateagencieswhenlicensingandregulatingAEAmaterialsandprocesses.NRChas
enteredintoMOUswithseveralfederalandStateagencieswithrespecttoregulationofsource
materialrecoveryfacilities.Currently,theState(WDEQ)hasanMOUwithNRCregarding
cooperationbetweentheagencies,includinginformationsharingandcoordinationonreviews
ofdocumentsandanalyses.Asdiscussedbelow,oneofthealternativesexaminedbythis
feasibilitystudyisrevisingthisMOUtoattempttomitigateoreliminateexistingdual
jurisdictionissues.

NRCsmostrecentMOUisthefirstrevisedversionoftheMOUbetweenNRCandBLM
regardinglicensingofsourcematerialrecoveryfacilities.158Boththeoriginalandfirstrevised
versionsofthisMOUhavebeenusedtoallowforincreasedcoordinationbetweentheagencies
inanattempttostreamlinethelicensingprocessandavoidduplicativereviewsofsafetyand
environmentaldataandanalyses.Indeed,thisMOUhasbeensuccessfulinintegratingBLM
intoatleasttwocurrentISRoperatinglicensereviewsthatalsorequiredBLMPlansof
Operation(POO),sothatasinglesupplementalenvironmentalanalysisdocument(SEIS)canbe
generatedthatsatisfiesbothagencymandates.

IftheStatedeterminestopursueAgreementStatestatus,thisstudyrecommendsthat
theStateimmediatelypursueMOUswithrelevantfederalagencies(e.g.,EPA,USFS,BLM)or
reviseexistingMOUstoreflecttheAgreementStateprogramandthemannerinwhichthe
agencieswillcoordinatereviewefforts.ThiswillassisttheAgreementStateprogramin
conservingresourcesbystreamliningthelicensingprocessandreducingtheworkloadon
WDEQpersonneltotheextentpracticable.

Further,asstatedabove,itisimportantfortheStatetoassessitspotentialAgreement
Stateprogramrequirementstodeterminewhat,ifany,intraStateagencyMOUsneedtobe
updatedand/ordraftedtoensurethatsufficientexpertiseisavailableforlicensingaction
reviews.AsdiscussedintheStateofColoradocasestudyabove,AgreementStateprograms
canbenefitgreatlyfromtheuseofintraagencypersonnelasnoadditionalFTEarerequired

158
SeeExhibit62.TheNRC/BLMMOUwentthroughtwostagesofdevelopment.Thefirststage
involvedthedevelopmentofaninteragencyrelationshipbetweenNRCandBLMsothatenvironmental
reviewsofconcurrentNRClicenseandBLMPOOreviewscouldbecoordinatedand,inappropriate
cases,acooperatingagencyrelationshipcouldbeutilizedunderCEQregulations.Thesecondstage
amendedthisMOUtoincludecoordinationonitemssuchasfinancialassurance.

andsuchpersonnelcanbemadetofitwithintheprogramsfeestructure.Intraagencyentities
suchasaStatesHomelandSecurityDepartmentmaybebroughtintoconsultonapolicygoing
forwardonitemssuchastransportationaccidentsandsitespecificscenarios.

iv. PERFORMANCEBASEDLICENSING

OneinterestingCommissionpolicywarrantingsignificantattentionfromany
AgreementStatethathasbeentranslatedtosourcematerialrecoveryregulationfromthe
nuclearpowerreactorcontext(10CFRPart50.59)istheconceptofperformancebased
licensing.Ahistoryofhowthispolicyhastranslatedintostandardizedlicenseconditionsfor
allNRCsourcematerialrecoverylicenseesisdiscussedbelow.

CongressenactedtheAEAtopromotenationalsecurityandpeacefulusesofatomic
energyintheUnitedStates.AtthetimeoftheAEAspassage,theAECsprimaryfocuswasthe
developmentofnuclearweaponsbutthatfocusexpandedtoregulationofconstructionand
safeoperationofciviliannuclearpowerreactorfacilities.Inordertoadequatelyregulatethe
highestpotentialriskactivityintheciviliannuclearfuelcycle,theAECexpendedconsiderable
resourcestoquantifysystematicallytherisksassociatedwithnuclearpowerreactors,AEC,and
laterNRC,promulgatedandimplementedadetailedandrestrictiveregulatoryprogram(10CFR
Part50)sothatsuchfacilitiescouldbeoperatedefficientlywiththenecessaryassurancethat
publichealthandsafetyandtheenvironmentwouldbeadequatelyprotected.However,even
inthecontextofthishigherpotentialriskactivity,NRCdeterminedthatcertainreactorrelated
activitiesinvolvelevelsofriskthataresufficientlylowtojustifyscaleddownNRCregulatory
oversightthatdoesnotrequireactivedaytodayoversight.159

SinceNRCsregulatoryregimeincludesawiderangeoflicensedactivitiesinvolving
variousrangesofpotentialrisk,NRCdecidedtoanalyzeoperationalissuesanddesign

159
Anexampleofscaleddownregulatoryoversightinthe10CFRPart50reactorregulatoryprogramis
10CFR50.59entitledchanges,testsandexperiments.Furthermore,Section50.59(c)(1)states,in
pertinentpartAlicenseemaymakechangesinthefacilityasdescribedinthefinalsafetyanalysis
report(asupdated),makechangesintheproceduresasdescribedinthefinalsafetyanalysisreport(as
updated),andconducttestsorexperimentsnotdescribedinthefinalsafetyanalysisreport(asupdated)
withoutobtainingalicenseamendmentpursuantto50.90onlyif.(emphasisadded)

(i) achangetothetechnicalspecificationsincorporatedintothelicenseisnot
required;and

(ii) thechangetestorexperimentdoesnotmeetanyofcriteriainparagraphc(2)
ofthissectione.g:

(i),(iii)&(iv)ifitresultsinmorethanaminimalincreaseinthe
frequencyofoccurrence,consequences,ortypeofaccidentor
(ii),(iv)&(vi)ifitresultsinmorethanaminimalincreasein
likelihoodofoccurrence,consequencesorresultofamalfunction.

83

regulatoryoversightinconjunctionwithrelativelevelsofrisk.Usingthisriskinformed
approach,NRCevaluatedawiderangeofchallengestothesafetyaspectsofvariouslicensed
activities,includingprioritizingpotentialrisksbasedonoperatinghistoryandindustry
experience,engineeringjudgmentandconsiderationofrelativelevelsofuncertaintyinsafety
andenvironmentalanalysesforspecificactivities.AsstatedbyNRC,[w]hereappropriate,a
riskinformedregulatoryapproachcanalsobeusedtoreduceunnecessaryconservatismin
deterministicapproaches,orcanbeusedtoidentifyareaswithinsufficientconservatismand
providethebasesforadditionalrequirementsorregulatoryactions.SeeUnitedStatesNuclear
RegulatoryCommission,SECY98144,WhitePaperonRiskInformedandPerformanceBased
Regulation(June22,1998).

NRCmarriedanotherregulatoryoversightconceptwithitseffortstoriskinformits
programi.e;performancebasedregulation.FormerNRCChairmanShirleyJacksoninitiated
NRCs1995StrategicAssessmentandRebaseliningInitiative(SARI),topromoteamorerisk
informedregulatoryapproachtoNRClicensingandoversightandtoconsiderbroaderusesof
performancebasedlicensingconcepts.Performancebasedlicensing,asopposedto
conventionalprescriptivelicensing,isdesignedtominimizetheamountofactiveregulatory
oversightoveralicensedactivitybyprovidingperformancecriteriaorrequirementsfor
licenseeswhile,atthesametime,assuringthatpublichealthandsafetywillbeadequately
protected.AsstatedbyNRCStaffinSECY98144:

Aperformancebasedrequirementreliesuponmeasurable(orcalculable)
outcomes(i.e.,performanceresults)tobemet,butprovidesmoreflexibility
tothelicenseeastothemeansofmeetingthoseoutcomes.Aperformancebased
regulatoryapproachisonethatestablishesperformanceandresultsasthe
primarybasisforregulatorydecisionmaking,andincorporatesthefollowingattributes:
(1)measurable(orcalculable)parameters(i.e.,directmeasurement
ofthephysicalparameterofinterestorofrelatedparametersthatcanbeusedto
calculatetheparameterofinterest)existtomonitorsystem,includinglicensee,
performanceagainstclearlydefined,objectivecriteria,(2)licenseeshaveflexibilityto
determinehowtomeettheestablishedperformancecriteriainwaysthatwill
encourageandrewardimprovedoutcomes;and(3)aframeworkexistsinwhichthe
failuretomeetaperformancecriterion,whileundesirable,willnotinandofitself
constituteorresultinanimmediatesafetyconcern.Themeasurable(orcalculable)
parametersmaybeincludedintheregulationitselforinformallicenseconditions,
includingreferencetoregulatoryguidanceadoptedbythelicensee.

Seeid.

NRChasdeterminedthatriskinformed,performancebasedregulationisanapproach
underwhichriskinsights,engineeringanalysisandjudgment,andperformancehistoryare
used,to(1)focusattentiononthemostimportantactivities,(2)establishobjectivecriteria
baseduponriskinsightsforevaluatingperformance,(3)developmeasurableorcalculable

84

parametersformonitoringsystemandlicenseeperformance,and(4)focusontheresultsasthe
primarybasisofregulatorydecisionmaking.Id.

Onebenefitofperformancebasedlicensingisthatitmaybeimplementedwithoutthe
needtodevelopriskinsightsateverystage.Id.Riskinformedanalysesandexperiencehave
providedaframeworkwithinwhichobjectiveperformancecriteriaforlicensedactivitiescanbe
establishedandlicenseescanbegivenflexibilityregardingmanagementoftheirtechnologiesor
processessolongastheperformancecriteriaaresatisfied.Performancecriteria,whichare
focusedmoreonresultsratherthanprocesses,alsocanbecombinedwithprescriptive
requirements(i.e.,mandatorylicenseconditions)tocreatealicensingapproachthatmore
efficientlyfitsaparticularlicensedactivity.AsstatedbyNRC,aperformancebasedapproach
doesnotsupplantordisplacetheneedforcompliancewithNRCrequirements,nordoesit
displacetheneedforenforcementaction,asappropriate,whennoncomplianceoccurs.Id.

ThismarriageofconceptsledNRCtoconcludethat,forlowerriskactivities,these
conceptsanddefinitionsshouldproveequallysuitableprovidedthatNRCadoptsaflexible
frameworkfortheimplementationofriskinformed,andultimatelyperformancebased
regulationacrossthefullspectrumofthematerials,processes,andfacilitiesregulatedbyNRC.
Id.

Duringthelate1990s,NRCStaffbeganconsiderationofperformancebasedlicensesand
licenseconditions(PBLC)inthecontextofconventionalandISRuraniumrecoverylicenses.Asa
result,suchsourcematerialrecoverylicenseesutilizeperformancebasedlicenseconditions
and,indeed,evenEnvirocareofUtahs(nowEnergySolutions)11e.(2)byproductmaterial
disposalfacilitylicensecontainsperformancebasedlicenseconditions.AnyAgreementState
programwishingtoconserveresourcesshouldevaluatePBLCsindetailtoassureitunderstands
theconceptsinpracticeandapplication.

v. SAFETYANDENVIRONMENTALREVIEWPANEL

Assumingtheissuanceofaperformancebasedlicense,animportantcomponentofthat
licensewillbethesafetyandenvironmentalreviewpanel(SERP).ASERPgenerallyconsistsofa
minimumofthree(3)permanentmembers,eachofwhichpossessesexpertiseinarelevant
areaofconcernfortheproposedlicensedactivity.Forexample,inmanyinstances,permanent
SERPmemberswillrequireexpertisein:(1)businessmanagementaffairs,(2)engineering
and/ortechnicalissues,and(3)environmental/radiationsafety(i.e.,radiationsafetyofficers
(RSO)).SERPsalsomayincludeadditionalpermanentmemberswithexpertiseinhealthphysics
orotherrelevantsubjectmatters,aswellastemporarymemberswithexpertiseinlegaland
regulatoryaffairs.

TheSERPsprimaryfunctionistomonitorongoinglicenseeoperationsanddetermine
whetherthelicenseecan,initsowndiscretion,engageinaparticularactivitywithoutobtaining
alicenseamendmentand,therefore,withoutviolatingthemandatoryconditionsinitslicense.

85

AnyactivitiesassessedbytheSERPanddeterminedtobewithinthescopeofitsPBLCmustbe
documentedandmadeavailabletoNRCinspectorsuponrequest.160SERPsmaynotalteror
amendmandatorylicenseconditionsorengageinactivitiesoutsidethescopeofthePBLC
withoutNRCapprovalthroughalicenseamendment.

EvaluationandpotentialadoptionofthisPBLCconceptbyanAgreementStateraises
interestingissues.WhileperformancebasedlicensingtypicallyisviewedasaCommission
policyastosourcematerialrecoveryoperations,itisbasedonapplicationofthe10CFRPart
50.59performancebasedlicensingregulationfornuclearpowerreactors.Thisconceptalso
waslitigatedintheHRIlitigationandwasendorsedbothbytheLicensingBoardandthe
Commissiononappeal,whichinlegalspacegivesittheforceandeffectoflaw.NRCs10CFR
Part40compatibilitychartdoesnotevaluateperformancebasedlicensingand,thus,provides
noguidancetoperspectiveAgreementStatesduringtheprocess.Thus,thisstudyrecommends
thattheStatefullyanalyzetheuseofperformancebasedlicensingfromacompatibility
perspectiveandthendeterminewhetheritshouldbeincorporatedasapolicyinwholeorin
partpriortofinalizingaproposedrulemakingforpubliccomment.

vi. NRCVERSUSSTATEREQUIREMENTS

ItisworthnotingthatsomePolicyStatementsandotherregulatoryinterpretation
documentsaddressissuesthatarenotrelevanttoAgreementStateprograms,becausecertain
ofthesedocumentsareissuedtoaddressmattersonlyaffectingfederal(butnotState)
regulatoryregimes.AnexampleisSection106TribalconsultationpursuanttotheNHPA161
whichimposesrequirementsonfederalagenciesforTribalconsultationinvolvingmajorfederal
actionsthroughregulationsat36CFRPart800.Further,PresidentClintonissuedExecutive
Order13175addressingfederalagenciesconductofTribalconsultations.WhileNRCisan
independentregulatoryagency,andthusnotsubjecttoExecutiveOrders,theCommissionhas
issuedaPolicyStatementthatitintendsforNRCStafftoactinaccordwiththespiritofthe
aforementionedExecutiveOrder.162Assuch,theCommissionhasissuedadraftTribalProtocol
forthepublicsconsiderationandvariousbranchesofNRCStaff,includingFSME,have
developedoraredevelopingTribalconsultationguidancetoassistboththeagencyandthe
licenseapplicant/licenseeintheconductoftheSection106Tribalconsultationprocess
associatedwithNRClicensingactivities.

Asnotedabove,theNHPA,theExecutiveOrder,and36CFRPart800aremeanttobe
bindingonandfollowedbyfederalagenciesandnotStateagencies.Statesarenotrequiredto
followanyoftherequirementsassociatedwiththeNHPAortheExecutiveOrder,andasofthe

160
FailuretofulfillSERPrequirementsortodocumentactivitieswithinthescopeofperformancecriteria
canresultinenforcementaction.SERPdecisionsandactionsbasedthereonareatthelicenseesriskas
inappropriatedecisionsalsocanleadtoNRCenforcementactionafterthefact.
161
SeePublicLaw89665,16U.S.C.470etseq.(1966)
162
SeeExecutiveOrder13175,ConsultationandCoordinationWithIndianTribalGovernments
(November6,2000).

86

writingofthisstudy,weareunawareofanyauthoritythatforcesStateagenciestoconsultwith
TribesonanyactionunderanAgreementStateprogram.Thisprospectisnotatypicalbecause
StatesalsoarenotdirectlysubjecttoNEPAforenvironmentalreviewofmajorfederal
actions.163

AgreementStates,however,arefreetoadoptrequirementsforTribalconsultation
withinanAgreementStateprogramiftheysodesire.Indeed,manyAgreementandnon
AgreementStateshaveadoptedregulationstoaddresstheevaluationandprotectionofNative
AmericanTribalpropertiesandinterests.ThereareseveralexamplesofStates,Agreementor
not,thathaveadoptedregulationsspecificallytailoredtoaddressingtheidentificationand
preservationofhistoricandculturalresourceswithoutregardtotheNHPArequirements.
TheseregulationsmayormaynotapplytomajoractionsdependingonaStatedefinitionof
suchanactionortheStatesparticularviewoftheneedsforTribalconsultation.Thiscould
incorporatedintoarulemakingaspartoftheStatesAgreementStateprogramrulemakingor
maintainedasanindependentportionoftheagencysregulatoryprogram,totheextentitis
deemedappropriate.

IntheeventthataCandidateAgreementStatedecidesdevelopmentofsuchregulations
areappropriate,36CFRPart800providesguidanceforconductingthefunctionalequivalentof
theaforementionedSection106processandtheStatecanrelyinwholeorinpartonany
guidancedevelopedbyNRCStaff.IntheeventthataStateisinterestedinpursuingthe
adoptionofregulationsand/orguidanceregardingsubjectmattersthatarenotdirectly
applicabletotheState,itisrecommendedthattheStateaddanysuchregulationstoits
empoweringstatuteforenactmentandtoitsrulemakingplanforAgreementStateregulations.
Itisunlikelythatanysuchcomponentsofbothastatuteandimplementingregulationswill
impactNRCsAgreementStatereview,butitwillhelptoexpediteimplementationofrequired
AgreementStateprogrammaterials.Evenifstatutorylanguageandregulationsneedtobein
separatelegislationandrulemaking,theprocesslikelywillnotbeaffectedadversely.However,
Thompson&Pugsley,PLLCmakesnorecommendationsfortheStateofWyomingregarding
whethersuchregulationsshouldbeadoptedand,ifso,whatthecharacteristicsofsuch
regulationsshouldbesincetheseissueswillbeaddressedbyrelevantfederalagencies(e.g,.
BLM,USFS)ifonfederallandwhileprivatelyheldlandraisessignificantaccessissuesforNRCs
Section106process.

AseconditemthatisimportantforacandidateAgreementStatetoevaluateisthe
adoptionofenvironmentalreviewregulationsforlicensingactions.Currently,NRCs
environmentalreviewregulationsresideat10CFRPart51andoutlinetheCommissions
interpretationofNEPArequirementsasprescribedbythefederalCouncilonEnvironmental
Quality(CEQ).Part51regulationsprescribethetypeofenvironmentalanalysisrequiredfor,

163
EventhoughStatesarenotsubjecttoNEPA,AgreementStatesarerequiredtoconduct
environmentalreviewsinamannerthatissimilartoNEPArequirementsunderUMTRCA.SeeCollegeof
William&MaryLawSchool,UraniumMiningandMillinginVirginia:AnAnalysisofregulatoryChoice,
(1984).ButtheproceduralrequirementsofNEPAarenotdirectlyapplicabletoAgreementStates

87

amongstotherthings,sourcematerialrecoverylicensingactionsasidentifiedabove(i.e.,
operatinglicenseapplications,licenseamendmentapplications,andlicenserenewals).For
example,Part51.20(b)(8)expresslyrequiresanenvironmentalimpactstatement(EIS)level
environmentalreviewfornewsourcematerialrecoverylicenseapplications.Atthistime,NRC
conductsSEISlevelenvironmentalreviewsfornewISRfacilitiesduetotheprogrammaticEIS
assessmentconductedintheaforementionedNUREG1910.Newsourcematerialrecovery
licenseapplicationsforconventionalmillsandheapleachfacilitieswillrequireafullEISdueto
theunavailabilityofaprogrammaticassessmentasupdatedasNUREG1910.EISandSEISlevel
reviewstriggertheneedforsomeformofscopingandpubliccomment.Inthecaseofthe
aforementionedISRSEISs,NRCconductedextensivescoping,includingthree(3)public
meetingsfortheISRGEIS(NUREG1910),therebyobviatingtheneedforscopingoneach
individualsitespecificSEISinaccordwithPart51regulations.SEISscurrentlydocomewitha
publiccommentperiodonthedraftdocumentforapproximately4560daysdependingonNRC
Staffsdeterminations.However,EISsforconventionalmills/heapleachfacilitiesrequire
mandatoryPart51scopingprocessesandpubliccomment.

Licenseamendmentandrenewalapplicationsdonotrequiresuchanextensive
environmentalreviewand,pertheguidanceatNUREG1748,beginwithanenvironmental
assessment(EA)levelanalysisand,ifsitespecificcircumstancesarewarranted,canbeelevated
toanEISlevelreview.Typically,veryfewsourcematerialrecoverylicensingactionsthatbegin
withanEAlevelenvironmentalreviewareelevatedtoanEISlevelreview.EAs,unlikeEISs,do
notrequiremandatoryscopingunderPart51orapubliccommentperiod.

ThecriticalquestionforacandidateAgreementStateishowtheStatewillconductan
environmentalreviewthatissimilartoNRCsAEAbasedreviews.Asageneralmatter,NEPAis
afederalstatuteandAgreementStatesarenotsubjecttoitsprovisions.However,UMTRCA
containsaprovisionthatdirectsAgreementStatestoadoptsimilarenvironmentalreview
regulations/requirements.Asaresult,whilecurrentAgreementStateswithsourcematerial
recoveryfacilityauthoritythoughnotsubjecttoNEPA,haveadoptedandmaintain
environmentalreviewregulationsthathavebeendeemedadequateandcompatibleinan
IMPEPreview.Thus,shouldWyomingdecidetomoveforwardwithbecominganAgreement
State,promulgationofenvironmentalreviewregulationsandeithercreationofnewor
adoptionofexistingNRCguidancewillberequired.

SeveralfactorsareimportanttoconsiderwhenadoptingAgreementState
environmentalreviewregulations.First,theenvironmentalreviewregulationsmustbe
adequateandcompatiblewithNRCregulations.Asdiscussedpreviously,Part51(andrelevant
Part40)regulationshavecompatibilityrequirementsandthecandidateAgreementState
shouldfollowthemasdescribedabove.Second,asdiscussedpreviously,someAgreement
Statesdoadoptstatutoryprovisionsputtingtimelimitsontheissuanceofinitialdeterminations
foraproposedlicensingaction.Thesetimelimitspresumablywouldincludethecompletionof
therequiredenvironmentalreviewdocumentation.Dependingonthescopeandextentofthe
AgreementStateadoptedenvironmentalreviewrequirements,anytimelimitthatcouldbe
proposedlikelywillbeaffected.TheStateshouldtakeintoaccountallaspectsofanyproposed

88

environmentalreviewregulations,includinganyStateTribalconsultationrequirements(which
areincludedinNRCsenvironmentalreview),whenconsideringastatutoryreviewtimeframe.
Prescribedtimeframeslikelywillhaveanimpactonbudgetingandstaffing.Third,Stateslike
WyominghaveaproventrackrecordofissuingPermitstoMineforsourcematerialrecovery
facilitiesand,presumably,theenvironmentalaspectsofsuchpermits.Inordertoconserve
resourcesintheinitialphaseofbecominganAgreementState,theStateshouldevaluateits
currentPermittoMinerequirementsandcrossreferenceallsuchrequirementswithNRC
regulations.Wheresuchregulationscoincide,theStateshouldincorporateitsrequirements
intoitsnewregulatoryprogram.Wheresuchrequirementsneedtobeaddedor
supplemented,suchactioncanbetakenbycomparingNRCregulations/guidancewithState
basedregulations/guidance.

4. NRCINSPECTIONANDENFORCEMENT

AfterNRCissuesalicensetoanentity,theagencyregulatesthecompliancewithits
licensesthroughitsinspectionandenforcementprogram.Asfacilitiesarelicensed,are
constructedandbegintooperate,NRCimposesreportingrequirementsonitslicensees
regardingcompliancewithregulationsandlicenseconditions;however,NRCdoesnotjust
regulateitslicenseesfromafar.

i. NRCINSPECTIONAUTHORITYANDPROCESS

Section161oftheAEAspecificallyauthorizesNRCtoconductinspectionsand
investigationsandtoissueordersassociatedwithsuchinspections/investigations.NRCStaff
hascreatedaninspectionandenforcementprogramforAEAlicensedsourcematerialrecovery
facilitiesthatisoperatedprimarilyoutofitsRegionIVTexasofficethatresultsinNRCStaff
conductingonsiteinspectionsoflicensedsourcematerialrecoveryfacilities,regardlessof
whethertheyareonstandbyinactiveoperations,groundwaterrestoration,finalsiteD&Doron
thebrinkoflicensetermination.

NRCssourcematerialrecoverylicenseeinspectorsthatarestationedatNRCsRegionIV
officeareseparatefromtheprimaryregulatorsthataddresslicenseamendmentapplications,
rulemaking,guidancedocuments,etc.stationedatNRCHeadquarters.Insomeinstances,NRC
StaffmembersstationedatNRCHeadquartersareinvolvedininspectionsbecauseoftheir
familiaritywithregulationsandregulatoryinterpretations.InspectionsareconductedbyNRC
Staffontimelinesthataredirectlyrelatedtothepotentialradiationriskassociatedwiththe
givenlicensedoperations.Forexample,anoperatingfacilitycanbeinspectedseveraltimesa
yearduetotheongoingpossessionanduseofAEAmaterialswhereasafacilityundergoingsite
D&Doronstandbywouldbesubjecttoinspectionlessfrequently(i.e.,onceperyear).

89

NRCinspectionsandtheirsubstancearediscussedingreatdetailinNRCsInspection
Manual.164Itemssubjecttoinspectionaredirectlyrelatedtothegeneraloverviewofthe
licenseactivityandmaterialsandsitespecificlicenseconditions.Forsourcematerialrecovery
facilities,inspectionsinvolveseveraldifferentaspectsofthelicensedoperationincluding,but
notlimitedto,managementorganizationandcontrols,radiationprotection,chemical
materials,radioactivewastemanagement,emergencypreparedness,firesafety,environmental
protection,andonsiteconstructionandmaintenance.Aftercompletionofaninspection,NRC
inspectorsprepareareportwhichismadepubliclyavailableonitsADAMSdatabase.

ii. NRCENFORCEMENTPOLICYANDPROCESS

AninspectionreportcantriggerNRCsenforcementresponsibilities.Inspectionsthat
yieldnonegativefindingsobviouslydonotleadtoanyenforcementaction.Forsourcematerial
recoveryfacilities,inspectionviolationsarecharacterizedbyNRCusingascaleofsafety
significanceasdescribedinNRCsEnforcementPolicy.Violationsoflowsafetysignificance
mayormaynottriggeranenforcementactiondependingontheabilitytorectifytheproblem
andpreventfuturenoncompliance.Violationsoflargersafetysignificancelikelywilltrigger
enforcementactionbyNRC.Section6.3oftheEnforcementPolicyoffersexamplesofmaterials
licenseeviolations.

NRCsEnforcementPolicydiscusseshowenforcementactionsarepursuedbyNRCwith
itslicensees.Asdiscussedpreviously,thefirststepistoprocessthefacilityinspectionreport
andtoidentifyanyviolations.Afteranyandallviolationshavebeenidentified,NRCStaff
assessesthesafetysignificanceoftheviolations.TheEnforcementPolicydescribesthefactors
affectingthesignificanceofaviolationandwillthendictatethetypeofpenalty,ifany,thatis
assessedtothelicensee.Aftertheviolationhasbeenanalyzedandviolationlevelhasbeen
assigned,NRCStaffthendeterminesthetypeofpenaltytobeassessed,whichcanrangefrom
nopenaltyandrectification,toacivilpenalty(monetaryfine),toordersthatmandate
immediatelicenseecompliancewithaprescribedactionoracombinationofanyoftheabove.

NRCsEnforcementPolicyalsodiscussestherightsofalicenseesubjecttoaviolation.
Suchlicenseesareentitledtoparticipateintheenforcementprocessand,intheeventthatNRC
doesmakeaunilateraldecisiontoproceedwithanenforcementaction,canavailthemselvesof
apredecisionalenforcementconferenceatwhichthelicenseeispermittedtopresent
informationregardingtheallegedviolationandwhytheviolationiseithernotwarrantedornot
assevereasoriginallydetermined.Ifapredecisionalenforcementconferenceisnotheld,the
licenseestillcanbepermittedtorespondinwritingtoaproposedenforcementaction.Other
aspectsoftheenforcementprogramincludethepossibilityofalternativedisputeresolution

164
SeeUnitedStatesNuclearRegulatoryCommission,NRCInspectionManual:ManualChapter2600:
FuelCycleFacilityOperationalSafetyandSafeguardsInspectionProgram(January27,2010)(hereinafter
Exhibit74).

90

(ADR)asanalternativetoaformalenforcementprocessandtheuseofenforcementdiscretion
toallowforviolationstoeitherbereducedinseveritylevelordismissedaltogether.

E. LICENSEAPPLICANTANDLICENSEEOVERVIEWSANDREQUESTS

ThisSectionofthefeasibilitystudyisintendedtoprovidetheStatewithanoverviewof
thescopeofsourcematerialrecoverylicensingactivitiescurrentlyongoingwithintheState,
thosecurrentlybeingreviewedbyNRCStaff,andthosethatpotentiallycouldbebeforeNRC
Staffinthecomingfive(5)years.Theanalysisassumesthattheaforementionedtimeframefor
initiatingandcompletingtheAgreementStateprocessisapproximatelyfive(5)years.Itis
importanttonotethatanadditionalprojectionoftheselicensingactionswillbediscussedin
Category2ofthisfeasibilitystudy.Category1analysisabovediscussedcurrentlyidentified
licensees,licenseapplicantsandfutureapplicants.Category2willaddressprojectionsof
activitiesinvolvingcurrentlicenseesincludinglicenseamendmentsandpotentialfuturelicense
applicationsbeyondthepotentialfive(5)yeartimeframeforbecominganAgreementState.

First,thecurrentstatusofWyomingNRClicenseesprovidespotentialfutureState
regulatorswithtwoimportantpiecesofinformation.Asisobvious,thisinformationprovides
theStatewithapreliminarynumberofactivelicensesthatwillbetransferredtotheState
AgreementStateprogramuponexecutionofaSection274AgreementbyNRCandthe
Governor.Eachoftheselicenseslikelywillbeinvaryingstagesoftheirrespectiveproject
lifecycles,anywherefromcommencingconstruction,toactiveoperationsandpotentially
groundwaterrestoration,decommissioningand/orsiteclosureandlicensetermination.As
such,theStatecanidentifythelicenseeswithinitspotentialregulatoryauthority,butalsocan
projectwherethoselicenseeswillbeintheirprojectlifecycleswhenanAgreementState
processiscompletedandtransitionoccurs.Itispossiblethatsomelicenseesmaybe
terminatedpriortothetransitionphaseandsomemayreachfinalsiteclosureandrequirethat
theStatetakeovertheSA900licenseterminationprocedurespriortofinalNRCsignoff.While
thesedatescannotbeidentifiedprecisely,asnotedbelow,theycanbeprojectedusingbest
availableinformationbasedonpastreviewsoflicensingactions.

TheidentificationoflicensingactionscurrentlybeforeNRCprovidestheStatewith
insightintolicenseesoradditionallicensedfacilities(satelliteISRwellfields)thatwillfallunder
theStatesAgreementStateprogramuponexecutionoftheSection274Agreement.Basedon
standardreviewtimesofapproximately2430monthsfornewoperatinglicensesandlesstime
forotherlicenseamendmentactions(withtheexceptionofACLs)165,itisreasonableto

165
Asapracticalmatter,ACLsforaconventionalmillingfacilityreviewedbyNRCtypicallyhavevariedin
reviewtimeperiodsdependingonanumberoffactorsincluding,butnotlimitedto,(a)thenumberof
ACLsrequested;(b)thepotentialimpactstotheproposedLTSMapproach;and(c)anyunusualaspects
oftheproposedapplicationssuchastheuseofdurableinstitutionalcontrols.Itislikelythatissuanceof
anACLforaconventionaluraniummillwilltakelongerthantheissuanceofanACLforanISRfacility.
However,todate,NRChasnotfullyevaluatedarequestedACLfromanISRlicensee.Although,NRChas
approvedgroundwaterrestorationinthepastandsuchreviewsvaryintimeframebasedonsitespecific
groundwaterconditions.

91

speculatethatsomeoftheselicenseapplicationsandotherlicensingactionswillbecome
subjecttoAgreementStatejurisdictioninthetransitionprocessafterexecutionofany
Agreement.ItisunlikelythatlicensingactionsactivelybeingreviewedbyNRCStaffnowwill
stillbependingbythetimethattheStatecompletesanAgreementStateprocessandengages
intransition.Anylicensingactionsthatalreadymayhavebeencompletedduringthe
AgreementStateapplicationprocesswillprovidetheStatewithinsightintohowtotransition
suchlicensestoStateoversightandhowfutureadditionallicensingactionsonsuchlicenseswill
needtobeaddressed.

Lastly,itisimportanttounderstandwhatthelicensingpipelinelookslikeforcurrent
andpotentialfuturelicenseesregardingtheirfutureplans,totheextentthatsuchinformation
ispubliclyavailable.Thislicensingpipelineisintendedtoincludecurrentlicenseapplicants,
futurelicenseapplicants,andbothsuchentitiesthatmayhaveadditionallicensemaintenance
activitiesandlicenseamendmentapplicationscominginthenearfuture.Withthis
information,theStatewillbeabletoprojectmoreaccuratelynecessaryfinancialresourcesfor
initiatingandmaintaininganAgreementStateprogram.

92

1. CURRENTLICENSEES

TABLE6: CURRENTLICENSEES

COMPANY PROJECTNAME PROJECTTYPE LICENSINGSTATUS


AMERICANNUCLEAR
GASHILLS CONVENTIONAL INACTIVE
CORPORATION
BEARCREEKURANIUM
BEARCREEK CONVENTIONAL AWAITINGLICENSETERMINATION
COMPANY
EXXON/MOBIL HIGHLAND CONVENTIONAL INACTIVE&RECLAIMED

KENNECOTTURANIUM
SWEETWATER CONVENTIONAL STANDBY
COMPANY
URENERGY/PATHFINDER SHIRLEYBASIN CONVENTIONAL/ISR INACTIVE

PATHFINDER LUCKYMC CONVENTIONAL INACTIVE&RECLAIMED

POWERRESOURCES,INC.
SMITHRANCHHIGHLAND/SATELLITES ISR ACTIVE
D/B/ACAMECORESOURCES
UMETCO GASHILLS CONVENTIONAL INACTIVE&RECLAIMED

URANERZENERGYCORP. HANK&NICHOLSRANCH ISR ACTIVE

URANIUMONEAMERICAS WILLOWCREEKETAL ISR ACTIVE

URENERGY/LOSTCREEK,LLC LOSTCREEK ISR ACTIVE


CONVENTIONAL
WESTERNNUCLEAR,INC. SPLITROCK
MILL
INACTIVE&RECLAIMED

2. PENDINGNRCLICENSEAPPLICATIONS

TABLE7: PENDINGLICENSEAPPLICATIONS

PROJECT
COMPANY PROJECTNAME LICENSINGACTIONREQUESTED
TYPE
AUC,LLC RENOCREEK ISR NEWOPERATINGLICENSE
CONVENTIONAL REVISEDACLSANDLONGTERMSURVEILLANCE
EXXON/MOBIL HIGHLAND
MILL BOUNDARY
POWERRESOURCES,INC.
MARSELAND ISR SMITHRANCHHIGHLANDSATELLITE
D/B/ACAMECORESOURCES
POWERRESOURCES,INC.
SMITHRANCHHIGHLAND ISR LICENSERENEWAL
D/B/ACAMECORESOURCES
POWERRESOURCES,INC.
THREECROW ISR SMITHRANCHHIGHLANDSATELLITE
D/B/ACAMECORESOURCES
STRATAENERGY,INC. ROSS ISR NEWOPERATINGLICENSE
URENERGY/LOSTCREEK, LOSTCREEKKM AMENDMENTTOLOSTCREEKOPERATING
ISR
LLC EXPANSION LICENSE
URANIUMONEAMERICAS LUDEMAN ISR WILLOWCREEKSATELLITE
CONVENTIONAL LICENSETERMINATION&SITETRANSFERTO
WESTERNNUCLEAR,INC. SPLITROCK
MILL DOE

3. PROJECTEDLICENSEAPPLICATIONS

TABLE8: FUTURELICENSEAPPLICATIONS(ThoseWhoHaveSubmittedLettersofIntenttoNRCStaff)
COMPANY PROJECTNAME PROJECTTYPE LICENSINGACTIONREQUESTED
ENERGYFUELSRESOURCES SHEEPMOUNTAIN HEAPLEACH NEWOPERATINGLICENSE
ENERGYFUELSRESOURCES GASHILLS HEAPLEACH NEWOPERATINGLICENSE
KENNECOTTURANIUMCOMPANY SWEETWATER CONVENTIONALMILL LICENSERENEWAL
POWERRESOURCES,INC.D/B/A
BROWNTRACT1 ISR SMITHRANCHHIGHLANDSATELLITE
CAMECORESOURCES
POWERRESOURCES,INC.D/B/A
RUBYRANCH ISR SMITHRANCHHIGHLANDSATELLITE
CAMECORESOURCES
POWERRESOURCES,INC.D/B/A
SHIRLEYBASIN ISR SMITHRANCHHIGHLANDSATELLITE
CAMECORESOURCES
POWERRESOURCES,INC.D/B/A
RUTH ISR SMITHRANCHHIGHLANDSATELLITE
CAMECORESOURCES
RAREEARTHRESOURCES BULLHILLPROJECT SOURCEMATERIAL166 NEWOPERATINGLICENSE
CROSSHAIR/THEBOOTHEEL NEWOPERATINGLICENSE(RESIN
BOOTHEEL ISR
PROJECT PRODUCTION)
URENERGY/LOSTCREEK,LLC LCEAST ISR LOSTCREEKLICENSEEXPANSION
URENERGY SHIRLEYBASIN ISR POTENTIALEXPANSIONTOEXISTINGLICENSE
URENERGY LOSTSOLDIER ISR LOSTCREEKLICENSEAMENDMENT
URANERZENERGYCORP. JANEDOUGH ISR HANK&NICHOLSRANCHSATELLITE
URANIUMONEAMERICAS IRIGARYEXPANSION ISR WILLOWCREEKLICENSEEXPANSION
URANIUMONEAMERICAS ALLEMANDROSS ISR WILLIOWCREEKSATELLITE
WILDHORSEENERGY WESTALKALICREEK ISR NEWOPERATINGLICENSE

F. PRODUCTDELIVERABLES
TABLE9: CATEGORY1PRODUCTDELIVERABLECHART
PRODUCTDELIVERABLE DESCRIPTION

DRAFTLEGISLATIONFOR NRCREQUIRESTHATTHECANDIDATESTATEENACTLEGISLATIONAUTHORIZINGTHEGOVERNORTOINITIATEANDEXECUTETHE
AGREEMENTSTATEPROCESS.MODELLEGISLATIONISAVAILABLEFORTHISLINEITEMANDSHOULDNOTREQUIREANYSIGNIFICANT
INITIATIONOFAGREEMENT ALTERATIONS.ASRECOMMENDEDPREVIOUSLY,THISLEGISLATIONSHOULDPROVIDETHEGOVERNORWITHTHEAUTHORITYTO
STATEPROCESS INITIATETHEAGREEMENTSTATEPROCESSANDTOEXECUTETHENRCAGREEMENTATTHEENDOFTHEPROCESS.

DRAFTLEGISLATIONFOR NRCREQUIRESTHATTHECANDIDATESTATEENACTLEGISLATIONSUPPORTINGTHEDEVELOPMENTOFANAGREEMENTSTATE
PROGRAMANDINITIATINGARULEMAKINGTOCREATEAGREEMENTSTATEPROGRAMREGULATIONS.MODELLEGISLATIONIS
IMPLEMENTATIONOF AVAILABLEFORTHISFROMANUMBEROFEXISTINGAGREEMENTSTATES,SOTHEPREPARATIONOFTHISLEGISLATIONSHOULDNOT
AGREEMENTSTATEPROGRAM BEONEROUS.

DRAFTIMPLEMENTING PRIORTOEXECUTINGASECTION274AGREEMENTWITHNRC,THEAGENCYREQUIRESTHATTHECANDIDATESTATEINITIATEA
REGULATIONSFORAGREEMENT PROCESSTOADOPTREGULATIONSTHATAREADEQUATEANDCOMPATIBLEWITHNRCREGULATIONS.MANYAGREEMENTSTATES
STATEPROGRAM,INCLUDING HAVEMODELREGULATIONSFORSOURCEMATERIALRECOVERY(E.G.,COLORADO,TEXAS)ANDTHEYSHOULDSERVEASMODELSFOR
RULEMAKING THESTATE.THISLINEITEMISINEXTRICABLYLINKEDTOTHELINEITEMBELOWWITHRESPECTTOPUBLICPARTICIPATION.

PRODUCTDELIVERABLE DESCRIPTION

PUBLICRELEASESCHEDULE WHILENOTNECESSARILYREQUIREDBYNRCREGULATIONSORGUIDANCE,ITISCRITICALTHATTHESTATEDEVELOPAPUBLIC
(NRCINTERACTION&PUBLIC RELEASESCHEDULEDETAILINGACRITICALPATHINCLUDINGSTATUTEENACTMENT,REGULATIONPROMULGATION,GOVERNORS
PARTICIPATION) SUBMISSIONOFTHEAGREEMENTSTATEPROGRAMREQUEST,PUBLICMEETINGSANDCOMMENTPERIODS,ETC.

COMPARISONCHARTOFWDEQ WHILEITISBRIEFLYDISCUSSEDINTHISFEASIBILITYSTUDY,THISPRODUCTDELIVERABLEISINTENDEDTOPROVIDETHESTATEWITHA
STAFFINGTOMEETNRC COMPARISONCHARTOFNRCAGREEMENTSTATESTAFFINGREQUIREMENTSWITHEXISTINGWDEQSTAFFINGANDPOTENTIAL
REQUIREMENTS ADDITIONS.THISCHARTALSOWILLPROVIDEACOMPARISONOFOTHERAGREEMENTSTATEPROGRAMSSTAFFINGANDRESOURCES.

97

G. EVALUATIONOFPOTENTIALALTERNATIVESTOAGREEMENTSTATESTATUS

Thompson&Pugsley,PLLCbelievesthatthisfeasibilitystudyismademorevaluableand
providesamorecompleteunderstandingofthegoaloftheEnrolledAct(toeliminatedual
jurisdictionoversourcematerialmilling)bydiscussingpotentialalternativestopursuing
AgreementStatestatus.Basedonpasthistoryandexperience,Thompson&Pugsley,PLLChas
determinedthattwopotentialalternativestopursuingAgreementStatestatusshouldbe
evaluatedbrieflyinthisfeasibilitystudy:(1)achallengetoNRCs2000millingunderground
decisionwhichdeclaredrestorationfluidtobe11e.(2)byproductmaterialandgrantedNRC
exclusive,federalpreemptivejurisdictionoverbothsurfaceandsubsurfaceactivitiesatISR
facilitiesand(2)torevisitthescopeofapotentialWDEQ/NRCMOUthatwouldallowWDEQ
primaryresponsibilityforsubsurfaceactivitiesatISRfacilitiesinWyoming.Aswillbediscussed
below,althougheachofthesealternativeshassomepotentialbenefitstheystillmaynotresult
ineliminationofdualjurisdictionoversourcematerialrecoveryfacilities.

1. THEMILLINGUNDERGROUNDDECISION

Thefirstalternative,reversingNRCsmillingundergrounddecisionshouldbe
evaluatedfromseveralperspectives,includingassessingthelikelihoodofsuccessandthe
potentialresultsofsucceedinginreversingthedecision.WhenNRCreconsideredthequestion
ofwhetheritcouldregulateISRwellfields,166NRCStaffpreparedaSECYpaperforsubmissionto
theCommissionthatpresentedseveralpotentialregulatoryinterpretationsforconsideration.
ThepreferredlegaloptionendorsedbyNRCStaffwasthatNMAslegalconclusionthatNRChad
nojurisdictionoverthesubsurfaceactivitiesatanISRfacilitywascorrectandthatrestoration
fluidsarenot11e.(2)byproductmaterial.TwoStaffmemberssubmittedadissentingopinionto
thepreferredoptionintheSECYpaperarguingthatNRCdidhavetheauthoritytoregulateISR
wellfieldsandthatrestorationfluidisindeed11e.(2)byproductmaterialbecausesuchfluidsare
socloselyrelatedtouraniumproductionoperations.InitsSRM,theCommissiondetermined
thatthedissentingopinionwascorrectandthecurrentNRClegalinterpretationisthatboth
surfaceandsubsurfaceactivitiesatISRfacilitiesareunderNRCsAEAjurisdiction.Thisdecision
effectivelygivesNRCpreemptivefederaljurisdictionovertheentiretyofanISRoperation,both
surfaceandsubsurface.GiventhattheAEAwasintendedtoprovideNRCwithpreemptive
jurisdictionoverthepossessionanduseofAEAmaterialsandtheconductofAEAoperations,a
challengetothisdecisionpotentiallycouldraisequestionsoverwhethertheStatehasany
authorityatalltoissuePermitstoMineforsourcematerialrecoveryoperations.

AchallengetothisdecisionrequiresanassessmentofbothNRCStaffandthe
Commissionslikelyreactiontoachallengeofthisdecision.First,NRCStafflikelywould
prepareandsubmitaSECYpapertotheCommissionforitsconsiderationwitharangeof

166
SeeLettertoMalcolmKnapp,Chairman,TransitionOversightTeam,UnitedStatesNuclearRegulatory
Commission,fromAnthonyJ.Thompson,Esq.Re:NRCJurisdictionOverInSituLeachingofUranium,
(March10,1994)(hereinafterExhibit75).

options,mostofwhichlikelywouldbesimilartothoseofferedinthe1999SECYpaper.But,the
keyquestioniswhichoftheseoptionsNRCStaffwouldproposetotheCommissionasthe
preferredoption.Giventhatthemillingundergrounddecisionhasbeenthelawoftheland
forovertwelveyearsandthatNRCStaffhasbuiltitsnewlicensingprocess/guidancearound
thepremisethattheymustreviewandapproveISRapplicationsbyreviewingproposalsfor
bothsurfaceandsubsurfaceactivity,itisreasonabletoexpectthatNRCStafflikelywillnot
espouseitspreviouspositionsupportingreversalofthedecision,althoughneitherofthe
dissentingNRCStaffmemberscurrentlyareactiveinsourcematerialrecoveryissuesatNRC
andtheprimeauthoroftheCommissionopinion(formerChairmanRichardMeserve)isno
longeratNRC.

Second,theCommissionwillberequiredtoapproveanoptionreversingthemilling
undergrounddecisionregardlessofwhatoptiontheStaffendorses.Itisunclearwhetherthe
currentCommissionorapotentiallyreconfiguredCommissioninthenextfewyearswillbein
favorofreducingitsroleinregulatingISRfacilities.

AvotetoremoveNRCfromsubsurfaceregulationwillstillbeanincomplete
alternative,becauseevenafavorableoutcomeonlywillremoveNRCfromISRwellfieldsbutwill
notremoveNRCfromsurfaceoperationsassociatedwithsourcematerialrecovery.Thedual
jurisdictionissuewillremainasISRoperatorsstillwillberequiredtoobtainaPermittoMine
andanNRClicenseforsurfacesourcematerialrecoveryoperationsinthecentralprocessing
plantthatessentiallymirrorthebackendoftheconventionalmillingprocessandthatgenerate
of11e.(2)byproductmaterial.Accordingly,ISRproductionactivitiesintheCentralProcessing
PlantandfinalsitesurfaceD&DactivitieswillimplicateNRCjurisdictionandlicensing.Wellfield
injectionandgroundwaterwillnolongerbesubjecttoactiveNRCoversight,however,NRCstill
willretainauthoritytoapprovefinalgroundwaterrestoration,surfacedecommissioningand
licensetermination.

Moreover,thelicensingprocessforNRClikelystillwillrequirea10CFRPart51.20(b)(8)
supplementalEISlevelenvironmentalreviewforallnewISRsourcematerialmillingapplications
albeitconfinedprimarilytothemorelimitedsetofissuesassociatedonlywithsurface
operations.Inotherwords,fornewoperatingISRlicenses,thesurfaceactivitiesarestill
consideredsourcematerialmillingandaccordinglyaSEISwillberequiredbutwithamuch
morelimitedscope.

Asecondperspectivefromwhichthisalternativeshouldbeanalyzedisfromaprocess
andresourceperspective.Inordertocreateanenvironmentwheretheviabilityofthemilling
undergrounddecisionmightbereconsidered,theStatecouldavailitselfofanumberof
approaches.TheStatecouldsimplyprepareanextensivelegalandregulatoryanalysisofwhy
thedecisionshouldbereversedandpresentthatanalysistoNRCStaffforitsconsideration.A
riskassociatedwiththisprocessisthatNRCStaffisnotrequiredbyregulationtoactonthis
typeofrequestandcandeclinetoprepareaSECYpaperforsubmissiontotheCommission.
TheStatealsocanpresentitscasedirectlyinpersontotheCommissionersinadvanceof
preparingandsubmittingitslegalandregulatoryanalysistodetermineinterestofthe

99

CommissionersintheissueandtopromotetheideathatNRCStaffshouldprepareaSECY
paper.

TheStatealsocouldwaitforanewlicenseapplicationtobesubmittedtoNRCandthen
requestahearingbeforeNRCsAtomicSafetyandLicensingBoardforalegaldetermination
thatthemillingundergrounddecisionshouldbereversed.Thereareseveraldrawbacksto
thisapproach.First,theLicensingBoardisrestrainedfromissuingrulingsthatareinconflict
withCommissionlevelprecedentperstaredecisis.Themillingundergrounddecisioncanbe
consideredCommissionlevelprecedentand,thus,theLicensingBoardlikelywillnot
unilaterallyreversesuchprecedent.AnysuchnegativedecisionbytheBoardcouldbedirectly
appealedtotheCommissionsotheStatecouldavailitselfoftheopportunitytoreversethe
decisionattheCommissionlevel.TheLicensingBoardalsoisfree,underNRCregulations,167to
certifyalegalquestiontotheCommissionforitsreview.Thiscouldresultinadecisionfrom
theCommissiononthelegalquestionpresentedtotheLicensingBoard.Bothofthese
processesrequireextensivelegalworkandparticipationinahearingprocessthatisalsoopen
tootherintervenors.Thetimingonthisprocesslikelycouldbeasmuchaseighteen(18)
monthsormore,assumingtheprocessworksasoutlinedabove.

ShouldtheStatedecidetopursuereconsiderationofthemillingundergrounddecision
Thompson&Pugsley,PLLCssuggestedapproachistopreparealegalandregulatoryanalysis
forsubmissiontoNRCStaffortheCommissionforconsiderationandrequestthataSECYpaper
bepreparedforconsiderationbytheCommission.ImportantStateofficialsshouldmeetwith
theCommissionersandpresentthecaseandlegal/regulatoryanalysis.Sinceitwouldbe
comingfromaStateitlikelywillbeconsideredtoohighprofilefortheStafftorefusetobringit
totheCommissionfortheCommissiontorefusetoconsiderit.Accordingly,thisapproach
appearstocarrytheleastamountofriskandalsocanbepreparedandexecutedintheshortest
timeframe.TimingforresponsesfromtheStaffandtheCommissionisunpredictable,basedon
StaffworkloadanddependingwhethervisitswiththeCommissionerswillstimulatesome
senseofurgency.But,whencomparingthisapproachtotheLicensingBoardalternative,this
approachappearstocarrytheleastriskofgoingoffoftherailsduringtheprocess.

Fromaresourceperspective,pursuingthisalternativewillrequiretheexpenditureofa
considerableamountofresourcesforlegalandregulatoryadviceandexecutionoftheprocess.
TheStateAttorneyGeneralsofficelikelywillleadtheeffortonpreparationofalegaland
regulatoryanalysiswiththeassistanceofoutsidecounselwithexpertiseonthisissue.Financial
resourceexpendituresaremitigatedbytheavailabilityofaconsiderableamountoflegaland
regulatoryanalysisontheissuefromthe1998NMAWhitePaperandrelatedefforts.However,
thesematerialswillneedtobeupdatedwithlegalreferencesandargumentsthataddress
directlythepreviousmillingundergrounddecisionsandsubsequentNRClegal

167
See10CFRPart2entitledAgencyRulesofPracticeandProcedureandcanbefoundat
http://www.ecfr.gov/cgibin/text
idx?SID=26e264c05b517f15dc0118340b78632c&c=ecfr&tpl=/ecfrbrowse/Title10/10cfrv1_02.tpl.

100

interpretations.Further,theStatewillberequiredtoexpendbothFTEequivalenttimeand
outsidecounseltimetonegotiatewithbothNRCStaffandtheCommissionerstominimizethe
riskofnoactionbyNRCStaff/Commissionersandmaximizethepotentialforareversalofthe
decision.Otherpotentialitemswhereresourceswillbeexpendedwillbeongoingconsultation
withNRCStaffduringtheprocessand,ifnecessary,participationinabriefingorhearingbefore
theCommission.Finally,theseresourcescouldbecomesunkcostsattheendoftheprocess
becausethereisnolevelofcertaintythattheprocesswillresultinafavorableoutcome.
WhilethecostsinvolvedwiththisfirstalternativewillbefarlessthanpursuingAgreement
StatestatusandoperatingasanAgreementState,theAgreementStateprocessisacodified
anddefinedprocessthatwillresultintransferofsourcematerialrecoveryauthoritytothe
State.

2. REVISIONTOCURRENTNRC/WDEQMEMORANDUMOFUNDERSTANDING

Withrespecttothesecondalternative,currentlythereisaWDEQMOUwithNRC
addressingAEAlicensablesourcematerialrecoveryoperations.ThisMOUservesasthebasis
bywhichconsultationsonthereviewofsourcematerialrecoveryapplicationscanbe
conducted.Asdiscussedearlier,atonepoint,WDEQattemptedtonegotiateanMOUwithNRC
StaffthatwouldhaveresultedinNRCsdeferralofregulatoryauthorityoversubsurface
activitiestotheState.Unfortunately,severalyearsofnegotiationresultedinlittleprogresson
suchanMOU.

Thus,fortheStatetodeterminetopursuethisalternative,theprimaryquestiontobe
addressediswhetherarevisedornewMOUcanbedevisedthatcouldendthedualjurisdiction
problemsbetweenWDEQandNRC.Centraltotheanswertothisquestioniswhetherthe
CommissionhasthelegalauthoritytodeferregulatoryauthoritytoanyStateintheabsenceof
aSection274Agreement.Afterthe2000millingundergrounddecision,theCommission
determinedthattheentiretyofanISRprocess,bothsurfaceandsubsurface,isunderNRCs
exclusive,federalpreemptivejurisdictionbecauseessentiallyallwastefluidsgeneratedfrom
theISRprocessnowareclassifiedas11e.(2)byproductmaterial.NRCadditionallyhas
determinedthat,itsCriterion5requirementsdirectlyapplytogroundwaterrestorationrather
thantheirpreviouspolicyofapplyingsomeStategroundwaterqualityregulationsonalicense
bylicensebasis.Giventhisdetermination,itiscurrentNRClegaldoctrinethattheAEAdirectly
appliestoallISRsubsurfaceoperations.

Withthatsaid,itappearsunlikelythatrevisionofthecurrentorcreationofanewMOU
betweenWDEQandNRCwillaccomplishthepurposeoftheEnrolledAct.MostexistingMOUs
betweenNRCandotherfederalorStateagenciesaremoreproceduralthansubstantivein
nature.UndertheAEAwhichistheCommissionsempoweringstatute,themethodology
prescribedbyCongressfordiscontinuingregulatoryauthorityoveranyAEAmaterialor
operationistheSection274AgreementStateprocess.Tothebestofourknowledge,thereis
noothermechanismavailableforNRCtorelinquishitsregulatoryauthorityoversuchmaterials
oroperations.EvenifNRCandWDEQagreedtopursuethisalternative,thelegalgroundsupon
whichsuchanMOUwouldrestpotentiallycouldbechallengedinalegalproceedingand

101

possiblyoverturned.ItisunclearatthistimewhetherNRCisevenabletodeferregulatory
authorityoveranyAEAmaterialoroperationwithouttheexecutionofaSection274
Agreement.

EvenifNRCcouldtrytomitigatelegalriskofadeferraltypeofMOUbyimposingsome
sortofdetailedoversightonStateregulationofISRproductionandrestorationactivities,itis
unclearhowsuchoversightcouldworkinamannerthateliminatesdualjurisdictionissues.
Indeed,arevisedornewMOUlikelywillnoteliminateallexistingdualjurisdictionissues
becauseNRCstillwillbeinanoversightpositionwithfinalsayongroundwaterissuesand,in
anycase,willretainjurisdictionoverthesurfaceactivitiesatanISRsiteandtheStatestillwill
requireoperatorstosubmitPermittoMinerequestsasisthecasenow.Thus,arevisedornew
MOUappearstobeanincompletesolutionbasedonthepurposeoftheEnrolledAct.

102

II. CATEGORY2: TRANSITIONTOAGREEMENTSTATESTATUS

ThisCategory2sectionofthefeasibilitystudyisintendedtoprovidetheStatewith
projectionsofreasonablyforeseeablelicensingandlicensemaintenanceactionsthatwillbe
transferredtotheStateuponexecutionofaSection274AgreementwithNRCforregulatory
authorityoversourcematerialrecoverymaterialsandoperations.ThisstudysCategory1
analysispresentedthree(3)tablesofexistinglicensees,pendinglicenseapplicationsand
licensingactions,andanticipatedfuturelicenseorlicenseamendmentapplications.This
sectionisintendedtoexpanduponthescopeofthatanalysistoprojectreasonablyforeseeable
licensingapplicationsandlicensemaintenanceactivitiesthatwillbependingbeforeNRCatthe
timeoftransitionandthosethatlikelywillbesubmittedposttransition.Manyoftheidentified
licensingactionsorlicensemaintenanceactivitiesareconsideredtobenothingmorethan
bestguessprojectionsbasedoncurrentlyavailableinformationandpastpracticesatsource
materialrecoveryfacilities.

Priortopresentingadditionaltablesofpotentiallicensingactionsandlicense
maintenanceactivities,Thompson&Pugsley,PLLCcontinuestoemphasizetheanalysis
providedinSection1ofthisstudysCategory2analysisinwhichtheprocessfortransitionto
AgreementStatestatusisdiscussed.Inthatsection,severalkeyitemsareidentifiedthatthe
Stateshouldaddresspriortotheinitiationofthetransitionprocess.Theseitemsinclude,but
arenotlimitedto,developmentofapolicyontransitionofexistinglicensesintoStatebased
licenses/permitsandthemannerofinteractionwithNRCStaffonpendinglicensingactions
suchasnewoperatinglicensesandlicenseamendmentrequests.Typically,NRCStaffretains
reviewauthorityoverpendinglicensingactionsalreadysubmittedforitsdetailedreview,which
doesnotlimittheStatesopportunitytointeractasaninterestedpartyinthoselicensingaction
reviews.Thistypeofinteractionisverysimilartothisstudyspreviouslydiscussed
recommendationthattheStateinteractasoftenaspossiblewithidentifiedNRCStaffteam
leaderstoensurethatallAgreementStateprogramissuesareproperlyaddressed.

Inaddition,thisfeasibilitystudywillprovideabriefoverviewofdifferenttypesof
licensingactionsthatpotentiallycouldbependingbeforeNRCduringtransitionorthatcould
becomethesubjectofimmediateStatereviewuponcompletionoftransitionandthepotential
implicationstheycouldhaveforStateprogramregulation.Forpurposesofthisdiscussion,
assumethateachofthecurrentlypendingNRClicensingactionsidentifiedinCategory1,Table
7havebeenreviewedandapprovedbyNRCStaff.

A. IDENTIFICATIONOFCURRENT,PENDING,ANDFUTURELICENSINGACTIONS

Inordertoproperlyunderstandthebudgetingandstaffingrequirementsfora
WyomingbasedAgreementStateprogrambeforeandaftertransition,thisfeasibilitystudywill
takeaforwardlookingapproachattypesandfrequencyofpotentiallicensingactionsthat
couldbebeforetheAgreementStateprogramafterthepotentialfive(5)yearperiodfor
becominganAgreementState.Thefollowinglistofitemsisbynomeansexhaustive,butit

103

doesencompassthemostprevalentandtimeandresourceconsumingpotentiallicensing
actions.FullbudgetandstaffingestimatesarelocatedatTables13and14below.

1. ALTERNATECONCENTRATIONLIMITS

Priortoitscurrentlegalinterpretationof10CFRPart40,AppendixA,Criterion5andits
applicabilitytoISRfacilities,ACLstypicallyappliedonlytogroundwatercontaminationat
conventionaluraniummillsandheapleachfacilities.NumerousexamplesofACLsareavailable
forreview,includingNRCapprovalofACLsattheWNISplitRocksiteintheStatein20045and
atWNIsSplitRocksitein2006.ACLsareavailabletosuchlicenseesasamatterofregulatory
right.Further,thereareACLsinplaceattheExxon/MobilHighlandsiteandanapplicationis
currentlybeforeNRCStafftorevisetheseACLsmovingtowardslicensetermination.Other
sitesintheStatehaveACLsinplaceorpotentiallycouldrequiresuchACLsinthefuture.

Asapracticalmatter,ACLshavebeennecessaryateveryconventionaluraniummill
becauseuraniummilltailingspilesimpoundmentsdevelopedintheearlydaysofthedomestic
uraniumrecoveryindustryweredesignedtoleakforfluidmanagement.TheseACLsthen
becamepartofthesitespecificpackageofpostclosurecontrolsthatweretransferredtoDOE
forLTSM.However,asstatedpreviously,NRCcurrentlyinterpretsCriterion5toapplytoISR
facilities.ThisinterpretationmeansthatISRwellfieldsaresubjecttothesamegroundwater
qualitystandardsasconventionaluraniummills.Thus,duringgroundwaterrestoration,NRC
and/ortheAgreementStateprogramwillhavetomakegroundwaterrestorationapprovals
contingentonmeetingsuchstandards.Ifaconstituentinaparticularwellfielddoesnotsatisfy
theprimaryandsecondarylimitsin10CFRPart40,AppendixA,Criterion5(B)(5),thenthe
licenseewillhavetoapplyforandreceiveanACLtogetfinalapprovalofrestorationeffortsand
toreclaimthewellfield(i.e.;pumps,pipes,headerhousesetc.).Thisfactalreadyhas
manifesteditselfintherecentsubmissionofanACLapplicationbyCamecoResourcestoNRC
fortheSmithRanchHighlandMineUnitBwellfield.Asnewwellfieldsareactivatedduringthe
projectedfive(5)yearAgreementStateapprovalprocess,itisprobablethat,inorderto
completegroundwaterrestoration,manywellfieldswillrequireACLapprovals.

BasedoncurrentlyavailableinformationatNRC,atypicalACLforaconventionalmill
hastakenanywherefromthreetofive(35)yearstoapprove.InthepastatsomeofISR
facilitiesintheeventofaconstituentorconstituentsnotmeetingbackground,theState(i.e.,
Wyoming)reviewsofrestorationeffortsbylicenseesreliedonpriorclassofusetosatisfy
finalrestoration.BecauseofNRCsapplicationofCriterion5,classofusecannolongerbe
usedastheappropriatecriteriontoestablishsuccessfulrestoration,althoughNRCStaffhas
statedthatclassofusecanbeusedasoneofthefactorstojustifyanACL.Thus,evenifthe
StatereceivesalargenumberoftheseACLapplications,thecurrentregulatorystructurewithin
theStatesexistingregulationsasmodifiedperCriterion5likelywillhavetobeusedtoaddress
suchapplicationseffectively.Theonlyissuewillbestaffingrequirements,butsuccessful
completionoftheAgreementStateprocessshouldensurethatthisrequirementissatisfied.In
ordertoproperlyestimatenecessarystaffresources,Thompson&Pugsley,PLLChighly

104

recommendsthattheStatedevelopasmuchinformationaspossibleonthenumberof
wellfieldsateachapprovedorpendingISRsiteandthendevelopaprojectionorbestguess
estimateofwhenandhowmanyACLslikelywillberequired.

2. NON11E.(2)BYPRODUCTMATERIALDIRECTDISPOSAL

Alicensingactionthatcarrieswithitseveralregulatorynuancesisthepotentialdirect
disposalofwastematerialsnotdefinedas11e.(2)byproductmaterial.Whiletheuranium
marketwassignificantlydepressed,conventionaluraniumrecoveryfacilitieswereleftwith
bothconsiderableprocessinganddisposalcapacitythatwasindangerofremainingunusedor
ofbeingshutdown.Inlightofthescarcityofrevenuesforconventionaluraniumrecovery
facilitiesandsincetheavailablealternativesfordisposalofhighvolume,lowactivityradioactive
wastesintheUnitedStatesareandwillbelimited,licenseessoughttoobtainNRCspermission
todisposeofmaterialsotherthan11e.(2)byproductmaterialintheirlicensedmilltailings
impoundments.Suchfactorsasthesimilaritytomilltailingsinvolume,radioactivity,and
toxicityandthehighcostsassociatedwiththeirdisposalintraditionallowlevelradioactive
waste(LLRW)disposalCompactfacilitiespromptedgeneratorsofthesewastestoviewuranium
milltailingspilesasanattractivechoicefordisposal.

OnAugust7,1991,NRCStaffissuedSECY91243informingtheCommissionthat
guidancehadbeendevelopedinresponsetoapplicants/licenseesrequeststodisposeofnon
11e.(2)byproductmaterialinmilltailingsimpoundments.TheCommissionissuedtwoSRMs
expressingconcernsaboutNRCStaffsproposedguidanceanddirectingthepublicationofsuch
guidanceforpubliccomment.Asnotedabove,onApril30,1992,theCommissionapproveda
FederalRegisternoticecombiningboththeproposeddirectdisposalandalternatefeed
guidanceandthenoticewaspublishedonMay13,1992.Reviewandcommentsweresought
fromthepublicincludingspecificallyDOE,EPA,AgreementStates,andLLRWCompacts.168

Inordertoaddressissuesraisedbypubliccommenters,NRCStaffrefineditsproposed
guidanceandissueditsFinalRevisedGuidanceonDisposalofNonAtomicEnergyActof1954,
Section11e.(2)ByproductmaterialinTailingsImpoundmentswhichrequiredthatthefollowing
requirementsbesatisfiedpriortoadirectdisposalrequestbeingapproved:

(1) Sincemilltailingsimpoundmentsarealreadyregulatedunder10CFRPart
40,licensingofthereceiptanddisposalofsuchmaterialshouldalsobe
underPart40;

168
OnOctober28,1992,anAdvanceNoticeofPublicRulemaking(ANPR)on10CFRPart40was
publishedintheFederalRegisterandtheproposedalternatefeedanddirectdisposalguidancewerethe
primaryissuesforpubliccomment.ThedirectdisposalissuesidentifiedinthisANPRMwereidenticalto
thoseintheMay13,1992FederalRegisternotice.Nonewissueswerementioned.

105

(2) RadioactivematerialnotregulatedundertheAEAshallnotbeauthorized
fordisposalinan11e.(2)byproductmaterialimpoundment;

(3) SpecialnuclearmaterialandSection11e.(1)byproductmaterialwaste
shouldnotbeconsideredascandidatesfordisposalinatailings
impoundment,withoutcompellingreasonstothecontrary.Ifstaff
believesthatsuchmaterialshouldbedisposedofinatailings
impoundmentinaspecificinstance,arequestforapprovalbythe
Commissionshouldbeprepared;

(4) The11e.(2)licenseemustdemonstratethatthematerialisnotsubjectto
applicableRCRAregulationsorotherEPAstandardsforhazardousor
toxicwastespriortodisposal.TofurtherensurethatRCRAhazardous
wasteisnotinadvertentlydisposedofinmilltailingsimpoundments,the
11e.(2)licenseealsomustdemonstrate,forwastecontainingsource
material,asdefinedundertheAEA,thatthewastedoesnotalsocontain
materialclassifiedashazardouswasteaccordingto40CFRPart261.In
addition,thelicenseemustdemonstratethatthenon11e.(2)material
doesnotcontainmaterialregulatedunderotherFederalstatutes,suchas
theToxicSubstancesControlAct(TSCA).Thus,sourcematerialphysically
mixedwithothermaterial,wouldrequireevaluationinaccordancewith
40CFRPart261or40CFRPart761.(Theseprovisionswouldcover
materialsuchas:characteristicallyhazardouswaste;listedhazardous
waste;andpolychlorinatedbiphenyls).Thedemonstrationandtesting
shouldfollowacceptedEPAregulationsandprotocols;

(5) The11e.(2)licenseemustdemonstratethattherearenoCERCLAissues
relatedtothedisposalofthenon11e.(2)byproductmaterial;

(6) The11e.(2)licenseemustdemonstratethattherewillbenosignificant
environmentalimpactfromdisposingofthismaterial;

(7) The11e.(2)licenseemustdemonstratethattheproposeddisposalwill
notcompromisethereclamationofthetailingsimpoundmentby
demonstratingcompliancewiththereclamationandclosurecriteriaof
AppendixAof10CFRPart40;

(8) The11e.(2)licenseemustprovidedocumentationshowingapprovalby
theRegionalLowLevelWasteCompactinwhosejurisdictionthewaste
originatesaswellasapprovalbytheCompactinwhosejurisdictionthe
disposalsiteislocated;

(9) TheDOEandtheStateinwhichthetailingsimpoundmentislocated,
shouldbeinformedoftheNRCfindingsandproposedaction,witha

106

requesttoconcurwithin120days.Aconcurrenceandcommitmentfrom
eitherDOEortheStatetotaketitletothetailingsimpoundmentafter
closuremustbereceivedbeforegrantingthelicenseamendmenttothe
11e.(2)licensee;

(10) Themechanismtoauthorizethedisposalofnon11e.(2)byproduct
materialinatailingsimpoundmentisanamendmenttothemilllicense
under10CFRPart40,authorizingthereceiptofthematerialandits
disposal.Additionally,anexemptiontotherequirementsof10CFRPart
61,undertheauthorityof61.6,mustbegranted.(Ifthetailings
impoundmentislocatedinanAgreementStatewithlowlevelwaste
licensingauthority,theStatemusttakeappropriateactiontoexemptthe
non11e.(2)byproductmaterialfromregulationaslowlevelwaste).The
licenseamendmentandthe61.6exemptionshouldbesupportedwith
astaffanalysisaddressingtheissuesdiscussedinthisguidance.169

Thisnewguidanceattemptedtorespondtoallpotentialregulatoryandpolicyconcernsraised
bytheCommission,NRCStaff,andpubliccommenters.

Inresponsetothisnewguidance,NMAarguedinitsWhitePaperthatthisnewguidance
wouldimposesomanyburdensomerequirementsonlicenseesthatitwouldbeextremely
difficult,ifnotimpossible,todisposeofnon11e.(2)byproductmaterialintailings
impoundments.Thisguidance,NMAasserted,wasinconsistentwiththegoalofoptimizing
protectionofpublichealth,safety,andtheenvironmentbyencouragingdisposalratherthan
storageofwastesandgenerallynotinkeepingwithsoundpublicpolicy,giventhemany
advantagesthatwouldbeavailabletowastegeneratorsbymakingdirectdisposalan
economicallyandlegallyviableoption.

Further,NMAarguedthatdirectdisposalofnon11e.(2)byproductmaterialintailings
impoundmentswouldpromotemaximumutilizationofavailablecapacityforradioactivewaste
disposalgiventheshortageofoptionsinthemarketplacefordisposalofhighvolume,low
activityradioactivewastethatissimilartouraniummilltailings(i.e.,contaminatedsoils,
sludges,andrubble).Indeed,asNRCcommentedinthepreambletotheproposedguidanceon
directdisposalissues:

Inmostoftheproposalsthestaffhasseen,disposalofthesematerialsin
tailingsimpoundmentswouldnotsignificantlyincreasetheeffectonthepublic
health,safety,andenvironmentThesewastesaresimilartothetailingsin
volume,radioactivity,andtoxicity.170

169
U.S.NuclearRegulatoryCommission,FinalRevisedGuidanceonDisposalofNonAtomicEnergyActof
1954,Section11e.(2)ByproductMaterialinTailingsImpoundments(August15,1995).(emphasis
added).
170
57Fed.Reg.at20527(emphasisadded).

107


Insomecases,non11e.(2)materialslikelywillposeevenfewerpotentialradiologicalandnon
radiologicalhazardsthanexistinguraniummilltailings.171Finally,NMAemphasizedthatNRC
Staffsnon11e.(2)directdisposalguidancecouldbemoreefficientifgenericwasteacceptance
criteriaweredevelopedbyNRCStaff.

Inresponse,NRCStaffsSECYpaperproposedthreepossiblecoursesofactiontothe
Commission:(1)retaintheguidanceinitscurrentform;(2)revisetheguidancetoallowfor
moreflexibilityinusingthedisposalcapacityofmilltailingsimpoundmentsor;(3)seek
legislativechangeswithregardtothetypeofmaterialstobeplacedinatailingsimpoundment
underthelongtermcareofDOE.172Inresponse,theCommissionissuedanSRMapprovingthe
secondproposedcourseofactionandexpresslydisapprovedofthethirdproposedcourseof
action.173TheCommissionstatedthatthedisposalofmaterialotherthan11e.(2)byproduct
material,whichmayincludelistedhazardouswastes,inmilltailingsimpoundmentsshouldbe
allowedonlyif:(1)thereisadequateprotectionofthepublichealth,safety,andthe
environment;(2)thelongtermcustodianofthesitehasindicateditswillingnesstoaccept
responsibilityformaintenanceofthesitepriortoNRCapprovingthedisposal;and(3)necessary
approvalsofotheraffectedregulators(e.g.,States,EPA)havebeenobtained.174The
Commissionalsostatedthatconsiderationshouldbegiventoobtainingwrittenapprovalofthe
longtermcustodian(i.e.,DOE)beforeapprovingadirectdisposalrequest.175

TheCommissionorderedthatnewrevisionstotheFinalGuidanceshouldbecodifiedin
afinalruleafterproperinteractionwithimportantstakeholderssuchasDOE,EPA,States,and
theuraniumrecoveryindustry.176Thedirectdisposalofnon11e.(2)byproductmaterials,the
Commissionstated,shouldbeallowediftheabovementionedcriteriaaremetandthe
materialsareradiologically,physically,andchemicallysimilartoandcompatiblewithmaterials
alreadybeingdisposedofinmilltailingsimpoundments.177Also,theStaffshouldpursuea

171
AdditionalregulatoryandpolicyargumentsonthisissuemaybefoundinNMAsWhitePaper.
172
SECY990012,UseofUraniumMillTailingsImpoundmentsfortheDisposalofWasteOtherthan
11e.(2)ByproductmaterialandReviewsofApplicationstoProcessMaterialOtherthanNaturalUranium
Ores,April8,1999.
173
UnitedStatesNuclearRegulatoryCommissionSRMSECY990012,UseofUraniumMillTailings
ImpoundmentsfortheDisposalofWasteOtherThan11e.(2)ByproductMaterialandReviewsof
ApplicationstoProcessMaterialOtherThanNaturalUraniumOres,July26,2000.
174
Id.Presumably,thenecessaryapprovalslanguagereferstoEPAordelegatedStateRCRAauthority
overcharacteristicorlistedconstituentsand,possiblyCWApermitissues,ifany.Suchapprovalsmayno
longerbenecessaryforalternatefeedsthatqualifyassourcematerialore.SeeIntheMatterof
InternationalUranium(USA)Corporation(WhiteMesaMill),LBP0219,56NRC113(August28,2002)
(hereinafterExhibit77).
175
Id.
176
Id.
177
SRM,SECY990012,UseofUraniumMillTailingsImpoundmentsfortheDisposalofWasteOther
Than11e.(2)ByproductMaterialandReviewsofApplicationstoProcessMaterialOtherThanNatural
UraniumOres,July26,2000.(emphasisadded).

108

genericexemptiontoPart61requirementssothatindividualexemptionsfromthose
requirementsforeachdisposalrequestcouldbeavoided.178

InlightoftheCommissionsapparentintenttopursueamoreflexibleapproachto
directdisposal,NMA,inconjunctionwiththeFuelCycleFacilitiesForum(FCFF),prepareda
secondWhitePaperentitledTheNationalMiningAssociationsandtheFuelCycleFacilities
ForumsWhitePaperonDirectDisposalofNon11e.(2)ByproductmaterialsinUraniumMill
TailingsImpoundments(NMA/FCFFWhitePaper).TheNMA/FCFFWhitePaperwastailored
specificallytodirectdisposalandNMAspastattempttoexpandthescopeofcandidatenon
11e.(2)byproductmaterialsfordisposalinmilltailingsimpoundments.Thefocusof
NMA/FCFFsapproachwastheproposedgenericwasteacceptancecriteriaforavarietyof
candidatenon11e.(2)byproductmaterialswithaparticularemphasisonthefollowing
materials:(1)sourcematerialintheformofthoriumordepleteduraniumcontaminated
wastes,(2)specialnuclearmaterialcontaminatedwastes,(3)naturallyoccurringradioactive
materials(NORM),includingtechnologicallyenhancedNORM(TENORM),and(4)lowactivity
mixedwastes.NMA/FCFFproposedthatNRCadoptgenericwasteacceptancecriteriaforeach
categoryofwasteusingapracticalupperboundapproachtoassesspotentialradiologicaland
nonradiologicalconstituentssothatspecificwastestreamscouldbeacceptedwithoutthe
needformultiplelicenseamendmentrequests.Inexchangeforthisflexibility,NMA/FCFF
proposedthatlicenseesseekingtousesuchwasteacceptancecriteriatodisposeofnon11e.(2)
byproductmaterialsand,inlightofthepotentiallydifferentradionuclidesandnonradiological
constituents,committocertainsitespecificrequirementssuchas:(1)workingwithNRCto
developasitespecificoccupationalhealthandsafetyprogramformillworkers,(2)developing
andimplementingincrementalsafeguardstoitsexistingmonitoringprogramforpotentialair,
soilorgroundwatercontamination,(3)creatingadequatesurfacestabilizationandreclamation
plansforsiteclosureandlicensetermination,(4)obtainingappropriatememorandaof
understanding(MOUs)fromagenciessuchasEPA,DOEandStatestoacceptwastestreams
withoutthethreatofdualoroverlappingjurisdictionand(5)supplyingadequatefinancial
assurancefortheeventuallongtermcustodian.

Further,inanefforttopromotetheirproposal,NMA/FCFFofferedcommentsonEPAs
2003ANPRregardingexpansionofdisposaloptionsforlowactivityradioactiveandmixed
wastesandexpresslystatedthatregulatoryagenciesshouldconsidermilltailings
impoundmentsasaviableoptionfrombothahealthandsafetyandaneconomic
perspective.179Generallyspeaking,NMA/FCFFscommentsfocusedonaddingmilltailings
impoundmentsasanoptiontotheregulatorymarketplaceandallowingthemarketplaceto
determinewhetherdisposaloflowactivityradioactiveandmixedwastesinsuch
impoundmentswouldbecosteffectiveandenvironmentallysound.Thesubmissionofthese
comments,inconjunctionwithadditionalworkwiththeHealthPhysicsSociety(HPS)also
resultedinthesubmissionofthisoptiontotheNationalAcademyofSciences(NAS)for
considerationinitsreportentitledImprovingtheRegulationandManagementofLowActivity

178
Id.
179
68Fed.Reg.65120(November18,2003)(hereinafterExhibit78).

109

RadioactiveWastes.180Inthisreport,NASbrieflybutfavorablydiscussedmilltailings
impoundmentsasapotentialoptionfordirectdisposalandasanexampleofhowregulatory
frameworksdonotnecessarilyresultinariskbasedapproachtowastedisposal.The
NMA/FCFFWhitePaperwassubmittedtoNRCin2005andresultedinseveraldiscussionswith
NRCStaff.However,duetoalackofresources,NRCStaffindicatedthatprogressontheWhite
Papersrecommendationswouldbeacceleratedifalicenseeweretoproposegenericwaste
acceptancecriteriainalicenseamendmentrequest.

Thesedirectdisposallicensingactionsdonothaveanyrealcasehistoryafterthe
adoptionofNRCsnewpolicy.TothebestofThompson&Pugsley,PLLCsknowledge,therehas
notbeenanyattemptbyconventionaluraniummillfacilitiestoobtainCommissionapprovalfor
directdisposalofashipmentofnon11e.(2)byproductmaterials.Thislackofhistoryrendersus
unabletodeterminehowsuchlicensingactionswouldbeapprovedbyanAgreementStatein
practice.However,itappearsbasedonthenumerouscriteriathatarerequiredforapprovalof
adirectdisposalactionplusthefactthattheCommissionwouldneedtosignoffonsuchan
actionaswellasobtainingDOEconsent,itislikelythattheStatewouldberequiredtospend
significanttimeevaluatingtheserequests.GiventhattheStatehasoneconventionalmill
(KennecottsSweetwaterMill)thathassignificantdisposalcapacityandthepossibilityoftwo
(2)heapleachfacilities(EnergyFuelsSheepMountainandGasHillssites),thisisanimportant
potentiallicensingissuetobeawareofatthistime.

3. ALTERNATEFEEDPROCESSING

Priorto1992,someconventionalmillinglicenseessubmittedrequeststoNRCtoprocess
feedmaterialthatwasnotnaturaluraniumoreandtodisposeoftheresultingtailingsand
otherwastesintheirmilltailingsimpoundments.Forexample,between1982and1987,NRC
approvedseverallicenseamendmentstoRioAlgomssourcemateriallicenseforitsLisbon,
Utahmillsitetoreceivesecondaryprocessingwastesfromauraniumhexafluorideconversion
facility,aniobiumtantalumrecoveryfacility,andanyttriumlanthanidesrecoveryfacility.181
Likewise,in1987,NRCpermittedtheQuiviraMiningCompanytoprocesssludgefroma
hexafluorideconversionplant.Theuraniumcontentofthesewastes,rangingfrom0.6to1.17
percentbyweight,wastypicallyhigherthanthatoftheaveragenaturalore,thusmakingthem
particularlyattractivecandidatesforprocessfeed.Inadditiontoprocessingwastesfromother
miningoperations,someuraniummillsalsohavesoughtNRCapprovaltoprocesswastes
generatedduringtreatmentofuraniumminewastewatercontainingsignificantconcentrations
ofuranium.

Withtheincreasesinrequestsfortheprocessingofthesesocalledalternatefeed
materials,from1991to1995,NRCStaffandtheCommissionengagedinarigorousprocessto

180
NationalAcademyofSciences,ImprovingtheRegulationandManagementofLowActivity
RadioactiveWastes,TheNationalAcademiesPress,Washington,D.C.(2006)(hereinafterExhibit79).
181
See57Fed.Reg.20,531(1992)(Exhibit17).

110

createguidanceforlicenseesseekingtoprocesssuchmaterials.Afterconsultationwiththe
Commission,finalconsiderationofpubliccomments,andseveraliterationsofdraftguidance,
onAugust15,1995,NRCStaffissueditsFinalPositionandGuidanceontheUseofUraniumMill
FeedMaterialOtherthanNaturalOres,182whichcontainedthree(3)keyrequirements.First,a
proposedalternatefeedmustqualifyasore.UndertheAEAandasdescribedabove,11e.(2)
byproductmaterialisdefinedasthetailingsorwastesproducedbytheextractionor
concentrationofuraniumorthoriumfromanyoreprocessedprimarilyforitssourcematerial
content.183Accordingly,iftheproposedalternatefeeddoesnotqualifyasore,wastes
resultingfromitsprocessingdonotconstitute11e.(2)byproductmaterialandcannotbe
disposedofroutinelyinauraniummilltailingsimpoundment.AlthoughUMTRCAdoesnot
specificallydefinewhatconstitutesanyore,theCommissionhasdevelopedthefollowing
definition:

[A]naturalornativematterthatmaybeminedandtreatedforthe
extractionofanyofitsconstituentsoranyothermatterfromwhich
sourcematerialisextractedinalicenseduraniumorthoriummill.184

Thisdefinitionwasdevelopedintentionallytobesufficientlybroadsothatsecondary
processingwastesfromothermineralrecoveryoperations(e.g.,yttriumlanthanidesrecovery
wastes)andwastesfromthetreatmentofminewaterhavingsignificanturaniumcontentcould
qualifyasore.NRCStaffemphasizedthefactthat,sincethephraseanyore,ratherthanthe
phraseanyunrefinedandunprocessedoreisusedinthedefinitionof11e.(2)byproduct
material,itimpliesCongressionalintenttoincludeabroadrangeofmaterialsinthedefinition
ofore.

Second,NRCStaffs1995guidancereaffirmedthatanymaterialcontainingalisted
hazardouswastesubjecttoEPAsRCRAregulationscouldnotbeprocessedasanalternate
feed.Thisbandidnot,however,applytoalternatefeeds(exceptsludgefromthetreatmentof
wastewater)exhibitingonlycharacteristicsofhazardouswaste(e.g.,ignitability,corrosivity,
etc.),sincesuchmaterialisexemptfromtheRCRAdefinitionofhazardouswastewhen
reclaimed.185

Third,the1995guidancerequiredthatalicenseedemonstratethattheoreisbeing
processedprimarilyforitssourcematerialcontenttoalleviateconcernsregardingsham
disposal.Tosatisfythisrequirement,NRCStaffrequiredlicenseestosatisfyeithertheco
disposalorlicenseecertificationtest.186

182
Id.Asnotedabove,thisguidancealsosetforththerequirementsfordirectdisposalofnon11e.(2)
byproductmaterialsinuraniummilltailingsimpoundments.
183
See42U.S.C.2014(e)(2)(emphasisadded).
184
57Fed.Reg.at20,531(emphasisadded)(Exhibit17).
185
See40CFR261.2(c)(3).
186
Thecodisposaltestrequiredthatifthefeedmaterialwouldbeapprovedfordisposalinthe
tailingsimpoundmentitcanbeconcludedthatifamilloperatorproposestoprocessit[thealternate

111


Threeyearslater,onApril26,1998,NMArespondedtoNRCStaffs1995guidanceinits
abovenoted1997WhitePaper.Specifically,NMArecommendedtworevisionstothe1995
guidancesothatawidervarietyofalternatefeedscouldbeprocessedwithoutjeopardizingthe
integrityofNRCsuraniumrecoveryprogram.First,NMArecommendedthatNRCcarefully
reconsidertheitsrequirementstodemonstratesourcematerialcontent.Tosatisfytheco
disposaltest,NMAargued,wouldbetooonerousaslicenseeswouldberequiredtosatisfyall
nine(9)criteriaforthedirectdisposalofnon11e.(2)byproductmaterial.187

Further,NMAarguedthatthenotionofshamdisposalwasunsoundand
unwarranted.Thenotionofshamdisposalwasbuiltontheassumptionthatalternatefeeds
arenotactuallyprocessedfortheirsourcematerialcontent,becausethevalueoftherecovered
uraniumcouldnotbejustifiedwithoutarecycling/disposalfeereceivedbythelicensee.
However,NMAarguedthattheregulatorystatusofanalternatefeedshouldnotbebasedon
NRCsperceptionoftheeconomicviabilityofuranium/thoriumextractionfromafeedmaterial,
sincesuchviabilitywillvarywithmarketconditions,existingcontracts,futurecommitments,
andotherfactors,regardlessofwhetherornotthefeedmaterialcontainshigherorlower
sourcematerialconcentrationsthanthatofmosttraditionalnaturaloresbeingprocessedin
U.S.uraniummills.

NMAalsostatedthatorebeingstockpiledatamill,regardlessofsourcematerial
concentration,issubjecttoAEAregulation.NMAfurtheralsoofferedportionsofUMTRCAs
legislativehistoryinsupportofitsfinalargumentthaturaniummills,bydefinitionandbyvirtue
ofundergoingtherigorousprocessofobtaininga10CFRPart40uraniumrecoverylicense,
processoresprimarilyfortheirsourcematerialcontent:


TheCommissionisinformedthatthereareafewmillscurrentlyusing
feedstockoflessthan0.05percenturanium.Ashighgradeoresbecome
scarcer,theremaybegreaterincentiveinthefuturetoturntosuchlowgrade
materials.Sincesuchoperationsshouldbecoveredbyanyregulatoryregime
overmilltailings,theCommissionwouldsuggestthatthedefinitionofbyproduct

feed],theprocessingisprimarilyforitssourcematerialcontent.Underthistest,thealternatefeed
wouldhavetobephysicallyandchemicallysimilarto11e.(2)byproductmaterialandnotbesubjectto
RCRAorotherEPAhazardouswasteregulations.Thesecondtest,thelicenseecertificationtest,
requiredthatalicenseeaffirm,underoathandsubjecttothepenaltiesofperjury,thattheproposed
feedmaterial:

isbeingreclaimedorrecycledinaccordwithRCRAordoescontain
RCRAhazardouswaste;andistobeprocessedprimarilyfortherecovery
ofuraniumandfornootherprimarypurpose.

57Fed.Reg.at20,533(Exhibit17).
187
57Fed.Reg.at20,531(Exhibit17).

112

materialberevisedtoincludetailingsproducedbyextractionofuraniumor
thoriumfromanyoreprocessedprimarilyforitssourcematerialcontent.188

Basedonthisstatement,NMAconcludedthatconsiderableflexibilityhadbeenbuiltintothe
statutorydefinitionof11e.(2)byproductmaterialtoallowforprocessingawidevarietyoffeed
materials,asores,inordertotreattheresultingwastesas11e.(2)byproductmaterial.

NMAfurthercitedtheKerrMcGeeChem.Corp.v.NRCcaseasevidencewhereinthe
D.C.CircuitrejectedNRCsargumentthatanoreprocessedfirstforitsrareearthcontentand
secondforitssourcematerialcontentwasnotprocessedprimarilyforitssourcematerial
contentand,thus,wouldnotcreatewastesqualifyingas11e.(2)byproductmaterial.189The
D.C.CircuitdeterminedthatNRCsargumentwouldfrustratethepurposeofUMTRCA,which
wasenactedtobringthetailingsandotherwastesgeneratedduringtheprocessingof
uranium/thoriumbearingmaterialsfortheirsourcematerialcontentunderNRCregulatory
oversight:

NRCconstruesthewordprimarilytomeanthattheextractionof
thoriumoruraniummustbethefirst,chief,orprincipalreasonfor
processingtheorebroughttoamillinorderfortheresultingtailings
tobecharacterizedasbyproductmaterial.

AstheSupremeCourthaspointedout,thewordprimarilyiscapable
ofarangeofmeaningsextendingfromfirstorchieftosubstantially
.Hadtheagencyadoptedthelattermeaning,itcouldeasilyhavefound
thattheoffsitetailingshadbeenderivedfromorethathadbeensubstantially
processedforitsthoriumcontent.190

Thus,NMAargued,bothcaselawandlegislativehistoryprovidepersuasivesupportfor
adoptingthepresumptionthatanNRClicensedsourcematerialrecoverymillisprocessing
alternatefeedsprimarilyfortheirsourcematerialcontent.NMArecommendedthatNRC
adjustitscodisposaltesttoreflectthispresumptionasthisapproachisconsistentwiththe
Commissionspolicyoflinkingthedefinitionof11e.(2)byproductmaterialtothenuclearfuel
cycle.AsstatedbytheCommission,

Thedefinition[of11e.(2)byproductmaterial]continuestobetiedinto
thenuclearfuelcycle.Becausetheextractionofuraniuminalicensed
millremainstheprimarypurposeofprocessingthefeedmaterial,it

188
StatementofDr.JosephHendrie,Chairman,U.S.NuclearRegulatoryCommissioninUraniumMill
TailingsRadiationControlActof1978(emphasisadded.)Indeed,thedraftGEISassumedanaverageore
gradeof0.15%whichwasreviseddownwardinfinalGEISto0.10%toreflecttheprojectionthataverage
oregradeswouldcontinuetodecrease,NUREG0706,Vol.IIp.A12,13.
189
903F.2d1(D.C.Cir.1990)(Exhibit47).
190
Id.at7(emphasisadded)(Exhibit47).

113

excludessecondaryuraniumsidestreamrecoveryoperationsatmill
processingoreforothermetals.191

Asaresult,theCommissiondoesnotconsiderwastesgeneratedbysecondary,sidestream
recoveryofuraniumbyfacilitiesthatprimarilyprocessoresfortheirrareearthcontenttobe
11e.(2)byproductmaterial:

Frequently,naturaloresthatareprocessedforrareearthormetalshave
significantconcentrationsofradioactiveelements.Examplesincludecopper,
zirconium,andvanadiumores.Sometimes,theuraniumiscapturedinaside
streamrecoveryoperationAlthoughthissidestreamrecoveryoperationis
licensedbyNRC,thetailingsarenot11e.(2)byproductmaterial.Thisisbecause
theorewasnotprocessedprimarilyforitssourcematerialcontent,butforthe
rareearthorothermetal.192

Basedonthis,NMAarguedthaturaniummillshouldbepermittedtorecoverother
mineralsormetals(e.g.,tantalum,vanadium)fromoresprocessedattheirfacilities
pursuanttoanAEA/AgreementStatesourcemateriallicensewiththeresultingwastes
stillqualifyingas11e.(2)byproductmaterial.Eventhoughadditionalmineralsormetals
wererecoveredfromtheseores,anNRClicensedsourcematerialrecoverymillstill
wouldbeprocessingtheoresprimarilyfortheirsourcematerialcontent.Finally,NMA
arguedthatonlyauraniumrecoveryfacilitywhoseprimarypurposewastorecover
sourcematerialwouldundergotherigorousprocessofobtaininganAEAlicensewithits
irrevocablecommitmentsregardinglongtermcontrolandmanagementoftailings.In
otherwords,afacilitynotseekingtobeprimarilyauraniumrecoveryfacilitywouldnot
assumetherigorousfinancialandregulatoryburdensassociatedwithbeinganAEA
sourcematerialrecoverylicensee.

ThesecondrecommendationfromNMAwasthatNRCshoulddiscarditsprohibitionon
theuseoffeedmaterialcontaininglistedRCRAhazardouswaste.NMAarguedthatNRCwas
beingoverlyconcernedwithdualregulationwhen,infact,UMTRCAcreatedaregulatory
regimethataddressesbothradiologicalandnonradiologicalconstituentsin11e.(2)byproduct
material.NRCstandardsforthemanagementanddisposalofuraniummilltailings10CFR
Part40,AppendixAfullyincorporateRCRAgroundwaterprotectionstandardsfornon
radiological(i.e.,hazardous)wastes.Wastesgeneratedduringprocessingofalternatefeed
materialscontainingRCRAhazardouswaste,thus,wouldbesufficientlycontrolledwhenthey
aredisposedofinmilltailingsimpoundments.CitingNRC,NMAnoted:

Constituentswithhazardouscharacteristicsthatwerefeedmaterials
processedatauraniummillwouldeventuallyendupinthetailings
impoundmentas11e.(2)byproductmaterial.Assuch,theywouldbe

191
57Fed.Reg.at20,532(emphasisadded)(Exhibit17).
192
Id.at20527(emphasisadded)(Exhibit17).

114

regulatedunderAppendixAof10CFRPart40whichprovidesfor
monitoringandcontrolofhazardousconstituents.Thus,theultimate
fateofhazardousconstituentsthatmightbeinuraniummillfeedwouldnot
escaperegulatoryoversight.193

NMAalsoemphasizedthattheexisting11e.(2)byproductmaterialregulatoryregimeis
extremelystringentandprovidespublichealthprotectionbeyondthatprovidedbyRCRAs
stringentregulations.Thetailingsmustbestabilizedthroughtheuseofpassivecontrols
(engineeredbarriers)tocontainpotentialradiologicalandnonradiologicalhazardswithout
benefitofactivemaintenanceforaminimumof200and,totheextentpracticable,1,000years.
Thesetimeperiods,NMAstated,aremuchgreaterthanRCRAsregulatoryhorizon(i.e.,30
years)andevenNRCs10CFRPart61LLRWstandards(i.e.,300500years)andthefederal
government(i.e.,DOE)asthelongtermcustodianisprojectedtobeanNRClicenseein
perpetuity.194

Later,InternationalUranium(USA)Corporation(IUSA),aconventionaluraniumrecovery
licensee,submittedapetitiontoNRCregardingNRCsalternatefeedpolicyentitledPetitionfor
ReconsiderationofTheNuclearRegulatoryCommissionsFinalPositionandGuidanceonthe
UseofUraniumFeedMaterialOtherthanNaturalOres(hereinafterreferredtoasIUSA
Petition).

IUSAsPetitionproposedthattheCommissionsubstantiallymodifytherequirementsin
NRCsalternatefeedguidancefordemonstratingthataproposedalternatefeedmaterialis
beingprocessedprimarilyforitssourcematerialcontent.IUSAarguedthatitsproposed
modificationswouldbeconsistentwiththeCongressionalintentasreflectedintheAEA,as
amendedbyUMTRCA,andaddressregulatoryissuesconsistentwithNRCsstatutorymission
(i.e.,protectionofpublichealth,safety,andtheenvironment,reclamation,andthelongterm
managementofuraniummillsandmilltailings).

IUSAproposedthatNRCscodisposalandlicenseecertificationtestsbereplaced
withthefollowingtest:

Amaterialwillbeconsideredtohavebeenprocessedprimarilyforitssourcematerial
contentif:

(a) sourcematerialisextractedinalicenseduraniumorthoriummill;
and,

193
57Fed.Reg.20525,20533(1992)(emphasisadded)(Exhibit17).
194
Unlikeaprivatecorporateentitywhich,asdemonstratedbytheAtlasCorporationbankruptcy
proceeding,maynotexistforlongperiodsoftime,presumablythefederalgovernmentwillexistfor
muchlongertimeperiodsandguaranteeconsistentandstableregulatoryoversight.Ifthefederal
governmentceasestoexist,itisunlikelythatLTSMresponsibilitiesforuraniummilltailingswillbea
majorconcern.

115

(b) processingthematerialatalicenseduraniumorthoriummillanddisposalofthe
resultingtailingsinthetailingscells:

1. willnotcausesignificantincrementaladverseeffectstopublic
safety,health,andtheenvironment;and,

2. willnotcompromisethereclamationofthetailingsimpoundment
andwillbeincompliancewiththereclamationandclosurecriteria
setforthin10CFRPart40,AppendixA.

Indeterminingwhetherornotconditions(a)and(b)aresatisfied,itshallbeirrelevantwhether
ornotitiseconomicallyviabletoprocessthematerialforitssourcematerialcontent,either
aloneortogetherwithotherminerals,andwhetherornotatollmilling,recycling,disposalor
otherfeeispaidtotheownerofthemillinconnectionwiththemillingofthematerial.

Tosupportthisproposal,IUSAarguedthat(1)thelegislativehistoryoftheAEA,as
amendedbyUMTRCA,existingcaselaw,andpastCommissionpoliciessupportedthe
presumptionthat,bydefinition,alicenseduraniumorthoriummillthatisprocessingalternate
feedmaterialsforrecoverableuraniumisdoingsoprimarilyforthesourcematerialcontent;(2)
NRCconcernsaboutshamdisposalareunfounded;(3)recyclingshouldbeaprimefocusof
NRCsalternativefeedguidanceand;(4)thecodisposaltestistoocumbersometobeofany
useandthecertificationtestshouldbeeliminated.

AfterreviewofNMAsWhitePaperandIUSAsPetition,NRCStaffreviseditsalternate
feedguidanceandissuedRegulatoryIssueSummary00023:RecentChangestoUranium
RecoveryPolicy(RIS)inwhichNRCStaffproffereditscurrentalternatefeedguidance:

(1) thealternatefeedmaterialmustbeanore;
(2) thealternatefeedmaterialmustnotcontainanylistedRCRAhazardous
wastes;195
(3) thealternatefeedmaterialmustbeprocessedprimarilyforitssourcematerial
content;196and
(4) thealternatefeedmaterialmustbeprocessedinaccordancewith10CFRPart40
requirementsandAppendixACriteria.197

195
TheRISalsostatesthat[t]he[NRC]staffwillmodifytheprohibitioninitem2onfeedmaterial
containinglistedhazardouswaste,toallowsuchfeedmaterialprovidedthatthelicenseeobtains
approvaloftheU.S.EnvironmentalProtectionAgency(EPA)ortheState,andacommitmentfromthe
longtermcustodiantoacceptthetailingsaftersiteclosure.
196
PursuanttotheitsdecisionintheInternationalUranium(USA)CorporationcaseagainsttheStateof
Utah,theRISstates,Thestaffwillrevisethemannerinwhichitdetermineswhethertheoreisbeing
processedprimarilyforitssourcematerialcontent,tofocusontheproductoftheprocessing,and
eliminateanyinquiryintothelicensee'seconomicmotivesfortheprocessing.SeeIntheMatterof
InternationalUranium(USA)Corporation,CLI0001,51NRC9(February10,2000).

116


ThispolicyiscurrentlyapplicabletoalluraniumrecoveryfacilitiesinbothnonAgreementand
AgreementStates.198

TheStatecurrentlyhasoneconventionaluraniummillonstandby(Kennecott
Sweetwater)andoneformerconventionalmillingfacility(Pathfinder/UrEnergyShirleyBasin)
thatcontinuestohaveanactivelicensewherenewconventionalmillingfacilitiescouldbe
installed.Further,atleasttwo(2)heapleachfacilitieshavebeenproposedwithintheState
(EnergyFuelsSheepMountain&GasHills)wheremillingfacilitiesmaybeconstructedthat
couldacceptalternatefeedmaterials.Asstatedpreviously,itisimportantfortheStateto
developapolicygoingforwardintheAgreementStateprocessonhowtoincorporateNRC
regulations,guidance,andpolicyeitherbyreferenceorinsomeotherformpriortoentering
thetransitionphase.Further,staffingontheseissueslikelywillbeminimalbecausethereview
criteriaforanalternatefeedlicenseamendmentaremuchlessthanforanewoperatinglicense
oranACLapplication.

4. WELLFIELDPACKAGES

AsISRprojectsinTables7&8areapprovedbyNRCStaff,licenseconditionsareissued
requiringthesubmissionofwellfieldpackagestoNRCpriortoengaginginactiveuranium
recoveryoperationsinsuchwellfields.Dependingonwhetherthereareanomalousconditions
presentatagivenwellfield(whichcanbeaddressedbythesitespecificlicenseconditions),
wellfieldpackagesfallunderavarietyofdifferentstandardsofreviewbyNRCStaff.Inmost
scenarios,wellfieldpackagesaremerelyreviewedbyNRCStaff,whichessentiallymeansthat
alicenseesendsthewellfieldpackagedocumentationtoNRCandwhereitisreviewed.
However,submissionofthedocumentationistheonlyrequirementnecessarypriortomoving
forwardwithpreoperationalinspectionandoperations.199Insomescenarios,wellfield
packagesaresenttoNRCStaffforreviewandverification,whichisaslightlyhigherstandard
ofreviewbutdoesrequireNRCStaffapprovalofthepackage.Fortheremainderofwellfield
packagesandintheeventofanyanomalousconditions,NRCStaffrequiresthatsuchpackages
besubjecttoreviewandapproval.Inthisinstance,NRCStaffhastosignoffoneachsuch
wellfieldpackage,whichrequirespreparationandissuanceofadocumentpackagejustifying
suchsignoff.

197
SeeUnitedStatesNuclearRegulatoryCommission,RegulatoryIssueSummary00023:Recent
ChangestoUraniumRecoveryPolicy,Attachment2(2000).
198
IntheInternationalUranium(USA)Corporationcasereferencedaboveandsubsequentcases
thereafter,theCommissionaffirmedNRCStaffalternatefeedguidanceinanadministrativelegal
proceeding.Thus,thealternatefeedguidancehastheforceoflawwhenappliedtoAgreementState
programs.
199
Insuchcases,routinewellfieldpackagesareassessedbythelicenseesSERPpursuanttoa
performancebasedlicensecondition(PBLC),whichisdiscussedinmoredetailsupraatSectionI(D)(3)(v)
ofthisstudy.TheSERPreviewtypicallyisbasedontheequivalentlevelofanalysisutilizedinlicense
amendmentapplications.

117


Currently,theStateengagesinreviewofwellfieldpackagesforISRlicensees.This
meansthattheStatewillbeperfectlycapableofreviewingwellfieldpackagesasanAgreement
Statebutthemajorquestioniswhetherexistingstaffingwillbesufficienttosustainreviewof
severalwellfieldpackagessimultaneously.Theonlyrepresentativeexamplewehaveofagency
staffingforISRwellfieldpackagereviewistheStateofTexaswhichcurrentlyisdealingwith
bothlicensedsitesandtheirwellfieldpackages.ThestaffingrequirementsfortheStatewillnot
betoodissimilarfromTexasbecausethesepackagesdonotnecessarilycomeinallatonce.
But,thereisanecessitytoensurethatthereareadequatehydrologicalexpertsonstaffto
facilitateproperwellfieldpackagereview.

AnimportantpointisthattheStateisnotnecessarilysubjecttoNRCStafflicense
conditionsimposingthethreeaforementionedstandardsofreview,dependingonhowor
whethertheStateincorporatesexistingNRClicenseconditionsandhowitinteractswithNRC
Staffonlicenseandlicenseamendmentapplicationreviewsduringthetransitionperiod.The
Stateisfreetoadoptitsownapproachestotheexistingandpendinglicensestotheextentthat
theyaredeemedtobecompatiblewithNRCsregulationsandlicenseconditions.

Asecondpointonwellfieldpackagesisthetimingforsuchpackagestobepreparedand
submittedbylicenseesorlicenseapplicants.Currently,industrymembersareunclearwhen
theycaninstallanentirewellfield,performnecessary,detailedpumpandothertesting,and
identifyandlocatewellsinitsmonitoringwellnetwork.Thecomplicationherecanbefoundin
NRCsnewlyrevised10CFRPart40.32(e)(otherwiseknownastheconstructionrule).The
revisedruleidentifiesspecificsiteactivitiesthatmeetthedefinitionofconstruction(e.g.,
installationofanentirewellfield)and,therefore,shouldnotbecompletedpriortoissuanceof
anoperatinglicense.TheruleiswrittentograntNRCStaffdiscretiontodenyalicenseinthe
eventthatsuchactivitiesareconductedpriortotheissuanceofalicense.Theassumptionthat
underliesthisruleisthatcomplete10CFRPart51environmentalreviewshouldtakeplaceprior
toanapplicantengaginginsuchactivities.However,thewordingoftheruledoesnot
conclusivelystatethatifalicenseapplicantengagesinsuchactivitiestherequestedlicensewill
bedenied.ThecompatibilitycategoryforPart40.32(e)isH&Smeaningthattheregulation
doesnotnecessarilyrequirecompleteadoption;butitcouldrequiresignificantStateattention
becauseofitspotentialimplicationsforISRfacilitydevelopmentgivenweatherconstrictionson
thetimingofsuchactivitiesinWyoming.ThiswillberelevantwhenandiftheStatedecidesto
begindevelopmentofmodelregulationsforanAgreementStateprogram.NRCStaffsrecent
discussionswithNMAhaveyieldedapathforwardonaRIStofurtherclarifyitsinterpretation
ofthisregulation.ItisrecommendedthattheStatemonitorthedevelopmentofthisRISasits
considerationoftheAgreementStateprocessprogresses.

Lastly,theStatehasanadvantagefromastaffingperspectiveforwellfieldpackages,
becausecurrentPermittoMineregulationsalreadyhavetheStatesreviewersapproving
wellfieldpackagesforISRpermittees.ThisdemonstratesthattheStatecurrentlyhasthe
expertisetoaddressthehydrologicalissuesassociatedwiththesetypesoflicensingactions.

118

Thus,budgetingandstaffingmaynotbeimpactedfortheseactionsintheeventtheState
decidestomoveforwardandbecomeanAgreementState.

5. SITEDECOMMISSIONINGANDDECONTAMINATIONPLANS

SiteD&Dplansaremajordocumentsthatrequiresignificantreviewtimeforalltypesof
uraniumrecoveryfacilities.Theseplansaredevelopedatdifferentstagesofprojects
dependingontheapplicablelicenseconditionsandthetypeofsourcematerialrecoveryfacility
implicated.ForISRfacilities,NRCcurrentlyrequiresviatheHydroResources,Inc.(HRI)
litigationdecisionsatboththeLicensingBoard,Commission,andTenthCircuitlevels,thatall
ISRlicenseandsatellitefacilitylicenseamendmentapplicantsincludethefunctionalequivalent
ofarestorationactionplan(RAP)intheirapplication.TheseRAPsareintendedtobestand
alonedocumentsthatprovidethereviewingregulatorwithaonestopshopreferenceguide
fortheISRoperatorsgroundwaterrestorationprocessandsiteD&Dplan.Eachlineitemin
theseRAPsisdesignedtobeaccompaniedbyacostestimatethatcontributestothegrand
totaloffinancialassurancerequiredtobemaintainedbythelicense.Byregulation(10CFRPart
40,AppendixA,Criterion9),ISRlicenseesarerequiredtoupdatetheirRAPsandassociated
financialassurancecostestimatesonanannualbasis.Severallicenseesandlicenseapplicants
havepreparedandsubmittedRAPstoNRCforitsconsiderationthatshouldbeconsidered
usefultemplatesforRAPpreparationshouldtheStatebecomeanAgreementState.Further,
typicalNRCISRlicensescontainaconditionrequiringsubmissionofaD&Dplanatleast12
monthspriortotheinitiationoffullsitedecommissioningsuchasdemolitionand
decontaminationoftheCPP,surfacesoilcleanup,etc.TheseD&DplansarereviewedbyNRC
duringthecourseofoperationsand/orgroundwaterrestorationdependingonthetimingof
finalrecoveryoperationsandwhethertheCPPwillcontinuetooperatefortollmilling.

ApointofcontentionthatwillberelevantinthecomingyearregardingsiteD&Dis
NRCs10CFRPart40.42timelinessindecommissioningrequirementsandtheirapplicability
toISRwellfields.Whenthisregulationwasfirstpromulgatedandappliedtosourcematerial
recoveryfacilities,itrequiredconventionaluraniummillstoreclaimsitetailingsimpoundments
withintwentyfour(24)monthsofcessationofuseoftheimpoundmentinaccordancewiththe
timelinessprovisionoftherule.Subsequently,asitbecameapparentthatitwasimpossiblefor
aconventionaluraniummilllicenseetofullyreclaimsuchimpoundmentswithintheprescribed
24monthperiodduetoitemssuchassheersizeoftheimpoundment,dewatering
requirements,theerosionandarmoringcontrolsnecessarytostabilizetheimpoundment,and
thenecessityforACLs.AsaresultoflitigationbyAMCandsettlementdiscussionswithNRC
Staff,arulemakingwasinitiatedtorevisetheruletoexemptconventionalmilltailings
impoundmentsfromthe24monthrequirement.Inthepasttwo(2)years,NRCStaffissuedan
interpretationthattheaforementioned24monthrequirementappliestoISRfacilities.NRC
StaffsinterpretationassumesthatthedefinitionofD&Dactivitiesincludeswellfield
restoration,groundwaterstabilizationmonitoring,andwellfieldequipmentremovalandany
necessarysurfacereclamation.Aswiththeoriginalapplicationofthisruletomilltailings
facilities,thisinterpretationasappliedtoISRfacilitiesisimpossibletocomplywithin24

119

months.Inthecomingyear,itislikelythatNRCandNMAwillrevisitthisissuewiththe
potentialforarulemakingtorevisePart40.42slanguage.

Forconventionaluraniummillsandheapleachfacilities,siteD+Dplansarerequiredto
besubmittedinaccordancewithNUREG1620entitledStandardReviewPlanfortheReviewof
aReclamationPlanforMillTailingsSitesUnderTitleIIoftheUraniumMillTailingsRadiation
ControlActof1978inasitespecificlicenseapplication.TheseD&Dplansarerelativelysimilar
inconcepttotheaforementionedRAPsinthattheyareintendedtoserveasareferenceguide
forreviewingregulatorswhenassessingaspecificlicenseorlicenseterminationapplication.
Theplanslineitemsalsoareaccompaniedbycostestimatestoallowforcalculationof
appropriatefinancialassurance.LikeISRRAPs,theseD&Dplansalsorequireannualupdates
perNRCregulation(AppendixA,Criterion9).Further,theD&Dplanmustberevisedaccording
tositespecificactivitiesdealingwithunknownssuchaspotentialimpoundmentleakagewhich
triggersmandatorygroundwatercorrectiveactionunder10CFRPart40,AppendixA,Criterion
5.

6. FACILITYRESTARTS

OneadditionalpotentiallicensingactionthatcurrentlyhasbeenevaluatedbyNRCStaff
intheStateandthatpotentiallycouldbeevaluatedbyafutureAgreementStateprogramisa
facilityrestart.Facilitiesthatareeitherintheprocessofdecommissioningoronstandbycan
seekauthorizationfromNRCoranAgreementStatetorecommenceactivesourcematerial
recoveryoperations.Thesefacilityrestartapplicationstypicallyaredictatedbylicense
conditionsprescribingspecificitemsthatmustbeaddressedtoensurethatthefacilityis
adequatetosatisfyhealthandsafetyrequirements.ISRfacilitiesthatproceedto
decommissioningand/orareintheprocessoffinalgroundwaterrestorationarestillpermitted
topursuefacilityrestartassumingthattheycandemonstratethatISRrecoverysolutionscanbe
containedsafelywithinthemonitoringwellnetworkandthatsitefacilitiesremaininadequate
technologicalconditiontooperateinaccordancewithpublicandoccupationaldosestandards.
Conventionaluraniummillsandheapleachfacilitiesalsoareentitledtopursuefacilityrestart
assumingtheyhavesufficient11e.(2)byproductmaterialdisposalcapacityandsitefacilitiesare
appropriatetorecommenceoreprocessing.Theexamplesofrequirementsstatedaboveare
notexhaustiveanddonotaccountforanysitespecificrequirementsimposedbyNRCthrough
licenseconditionforfacilityrestart.

7. SITECLOSUREANDLICENSETERMINATION

AnotherpotentiallicensingactionforaStateseekingAgreementStatestatusover
sourcematerialrecoveryandonethatappliestoallsourcematerialrecoveryfacilitiesissite
closureandlicensetermination.Conventionalmillsandheapleachfacilitieshavedifferent
closurestandardsthanISRfacilities,astheformertwofacilitiesarerequiredtobeclosedand
transferredtoDOEortheStateatnocosttothegovernmentforaminimumof200and,tothe

120

maximumextentpracticable,1,000yearswhilethelatterisrequiredtobeclosedandreleased
forunrestricteduse.However,regardlessoftheclosurerequirementsforeachfacilitytype,the
processbywhichsuchfacilitiesinAgreementStatesareclosedandtheirlicensesare
terminatedisthesame.

ForallsourcematerialrecoveryfacilitiesinAgreementStates,theprocessbywhichsites
areclosedandlicensesareterminatedinvolvesatwostepapproach.Thefirststepinvolvesthe
AgreementStateprogramreviewandapprovalofthecompletionofasiteD&Dplan,including
completegroundwaterrestorationforISRwellfieldsandtailingsimpoundmentclosureand
longtermmonitoring(ifnecessary)forconventionalmillsandheapleachfacilities.Essentially,
theAgreementStatewillengageinthesameprocesspursuanttoitsadequateandcompatible
regulationsasiftheStateweretheentitymakingthefinaldecisiononsiteclosureandlicense
termination.AftertheAgreementStatemakesafindingthatallrequirementsforsiteclosure
aresatisfied,thesecondstepispreparationofaCRRforsubmissiontoNRCforreviewand
approval.ThereasonforthisCRRistheAEA,asamendedbyUMTRCA,givesNRC(the
Commission)thefinalsignoffauthorityfortheclosureofsourcematerialrecoverysitesand
theterminationoftheirlicenses.AsrequiredbyUMTRCA,NRCistoapprovetransferof
conventionalmillorheapleachsites200forthesafecontainmentof11e.(2)byproductmaterial
toDOEortheresidentState.

Theimportanceofthetimeandresourcecommitmentofthisparticulartypeoflicensing
actionshouldnotbeoverlookedasthetimeframeassociatedwiththeStatepreparationofa
CRRandNRCsreviewprocessforaCRRisnotinsignificant.Agoodexampleofthisisthe
DuritasiteinwesternColoradocurrentlylicensedtoHecla.TheCRRpreparedbytheStateof
ColoradowassubmittedtoNRCStaffforitsreviewandconcurrenceindraftformin2003andis
stillawaitingapprovalandlicensetermination.NRCcanraiseconcernsregardinganAgreement
StatesCRR,andthisisthecasewiththeDuritasite.Duetothesecomplications,thereviewof
theDuritaCRRisstillongoing.Whilethislongtimeframecontinues,theAgreementStateisstill
requiredtotreatthelicensedsiteasactive,triggeringtheneedtosatisfyappropriatelicense
conditionssuchasinspectionsandannualreportingreviews.GiventhattheStateofWyoming
hasnine(9)(oneofwhichhasbeentransferredtoDOEforLTSM)UMTRCATitleIIsitesandthe
potentialforthree(3)additionalactivelicenses(seeTable6),thisispotentiallyalargebudget
lineitemandmayrequireseveralyearsofactiveregulationtocomplete.

200
ISRsitesarenotincludedthisdiscussionbecause,absentsomesitespecificanomaly,theCommission
haswaivedtheLTSMrequirementsunderUMTRCAforsuchsitesduetothelackofpotentialsignificant
risktopublichealthandsafetyandtheenvironment.ThesurfaceofanISRfacilityisrequiredtobe
restoredforunrestricteduseandthesubsurfaceisrequiredtoundergogroundwaterrestorationto
ensurenomigrationofrecoverysolutionstoadjacent,nonexemptaquifersoccurs.AsreportedbyNRC
StafftotheCommissiononJuly10,2009,therehavebeennoreportsofsuchcontaminationsinceISR
productioncommencedintheUnitedStates.SeeUnitedStatesNuclearRegulatoryCommission,Staff
AssessmentofGroundwaterImpactsfromPreviouslyLicensedInSituUraniumRecoveryFacilities,(July
10,2009).

121

Itisimportanttonotethatthelistofpotentiallicensingactionsdiscussedaboveisnot
exhaustiveasthereareseveraltypesoflicensingactionsthatcanberequestedbyasource
materialrecoverylicenseapplicantorlicenseeofanAgreementStateprogram.ISRlicensees
canrequestauthorizationforitemssuchasincreaseinannualproductionlimits,expansionof
licensedsiteboundariestoincludeadditionalwellfields,andretrofittingnewrecoveryfacilities.
Conventionaluraniummillsandheapleachfacilitiescanrequestauthorizationforitemssuchas
theadditionofneworexpansionofexistingtailingsimpoundments,additionofnew
technologiesfororeprocessing(e.g.,IXcolumns),andpartialsiteclosure.Itisrecommendedin
thisstudythatafurtherevaluationofthesepotentiallicensingactionsbepursuedimmediately
followingsubmissionofthisreport.Thisiscritical,becauseregardlessofthenumberofcurrent
licenseesthatachievesiteclosureandlicenseterminationpriortotransitiontoAgreement
Statestatus,anylicenseethatiscurrentlyactiveoronstandby,aswellasthoseproposedfor
licensingaftertransition,willhavetoproceedtolicenseterminationatsomepointintime.

ShownbelowisatableofcurrentorfuturelicenseesintheStatethatlikelywillremain
orbecomelicenseesuponStatetransitiontoAgreementStatestatus.Thislistcannotbe
consideredexhaustivebecausegiventheapproximately5yeartimeframefortheAgreement
Stateprocess,newcompaniesmaypursueandreceiveoperatinglicensesduringtheprocess.
However,thischartcanbeupdatedonanannualbasisastheStateseesfit:

122

TABLE10: EFFECTIVELICENSESUPONTRANSITION(PROJECTEDOVER5YEARPERIOD(2020)):(DOESNOTINCLUDESITESIN
DECOMMISSIONING)201

PROJECT
COMPANY PROJECTTYPE POTENTIALLICENSINGACTIONS
NAME(S)
WILLOWCREEK SATELLITES/EXPANSIONS,ACLS/RESTORATIONAPPROVALS,WELLFIELD
URANIUMONEAMERICAS ISR PACKAGES,INCREASEINANNUALPRODUCTIONRATE,LICENSE
MOORERANCH RENEWAL
SATELLITES/EXPANSIONS,ACLS/RESTORATIONAPPROVALS,WELLFIELD
HANK&NICHOLS
URANERZENERGYCORP. ISR PACKAGES,INCREASEINANNUALPRODUCTIONRATE,LICENSE
RANCH
RENEWAL
LOSTCREEK ISR SATELLITEEXPANSIONS,ACLS/RESTORATIONAPPROVALS,WELLFIELD
URENERGY/LOSTCREEK,
PACKAGES,INCREASEINANNUALPRODUCTIONRATE,LICENSE
LLC SHIRLEYBASIN ISR(PLANNED) RENEWAL
KENNECOTTURANIUM SWEETWATER CONVENTIONAL
FACILITYRESTART,LICENSEAMENDMENTS,LICENSERENEWAL
COMPANY URANIUMMILL URANIUMMILL
POWERRESOURCES,INC. SATELLITEEXPANSIONS,ACLS/RESTORATIONAPPROVALS,WELLFIELD
SMITHRANCH
D/B/ACAMECO ISR PACKAGES,INCREASEINANNUALPRODUCTIONRATE,LICENSE
HIGHLAND
RESOURCES RENEWAL
SATELLITEEXPANSIONS,ACLS/RESTORATIONAPPROVALS,WELLFIELD
AUC,LLC RENOCREEK ISR
PACKAGES,INCREASEINANNUALPRODUCTIONRATE
SATELLITEEXPANSIONS,ACLS/RESTORATIONAPPROVALS,WELLFIELD
STRATAENERGY,INC. ROSS ISR PACKAGES,INCREASEINANNUALPRODUCTIONRATE,LICENSE
RENEWAL

ENERGYFUELS SHEEPMOUNTAIN HEAPLEACH LICENSEAMENDMENTS

ENERGYFUELS GASHILLS HEAPLEACH LICENSEAMENDMENTS

201
NRCsLOIdatabasealsocontainstwo(2)additionalpotentiallicenseapplicationsduringtheproposedfive(5)yearAgreementStateprocess
fromtwocompaniesidentifiedinTable8above.However,overthepasttwelve(12)monthperiod,therehasbeennoadditionalinformation
madeavailableonthisdatabaseregardingupdatestolicenseapplicationschedulesand,thus,theyareomittedfrombudgetandstaffingbelow.

B. THETRANSITIONPROCESS

UsingtheTablesinpreviousSectionsregardingexistinglicensees,projectedlicense
applicationsandotherlicensingactionsthatmaybebeforeNRCduringthetransitionphaseof
theAgreementStateprocess,thisSectionidentifiesproceduresfortransitioningtoAgreement
Statestatusandidentifiespotentialpathsforwardfortransitionofexistinglicensesand
pendinglicensingactionstotheStatefromNRC.Productdeliverableshavebeenidentifiedin
thefeasibilitystudysScopeofWorkandareintendedtobecompletedinthe812months
immediatelyprecedingcompletionoftheAgreementStateprocess.Itislikelythatthemajority
oftheworknecessarytocompletetheseproductdeliverableswillbenothingmorethan
updatestoTablesandChartsinthisstudy.Thus,theStatecanconserveresourceson
completionofthiswork.

1. THETRANSITIONPROCESS:WHICHAPPROACHMAKESSENSE?

ThetransitionprocesstypicallybeginswithacompleteevaluationoftheAgreement
StateprocessimmediatelyprecedingexecutionoftheSection274AgreementbytheGovernor
andtheNRCChairman.Atthispointintheprocess,theStateshouldhavecompletedallofthe
actionitemsfromCategory1andwillhaveinplacethefollowingmandatoryitems:(1)
empoweringstatutesforGovernorsexecutionoftheAgreementandtodevelopanAgreement
Stateprogram;(2)completionofrulemakingprocessincludingNRCcommentsproposed
implementingregulationsandfinalizationofsuchregulations;(3)NRCapprovedadequate
staffingwithnecessarytraininginplace;and(4)thechosengovernmentalstructureforthe
AgreementStateprogram.Otheractionitemsalsowillbecompletedatthispointsuchasthe
Category1recommendedpublicparticipation.Further,approachesonadoptionofNRC
guidanceandpolicycanbefinalizedbytheStateatthispoint.

Mostimportantly,theStateshouldhaveconsultedwithandobtainedconcurrenceona
transitionprocessforexistinglicensestoWDEQequivalentlicenses/permitsandagreedupona
processforreviewofpendinglicenseapplicationswithNRC.Developmentofthispolicyis
criticaltoanefficientandeffectivetransitionprocess.Withrespecttotheformer,transitionto
WDEQequivalentlicenses/permitsisrelativelystraightforward.TheStateisfreetoacceptthe
existinglicensesasisandproceedwithfuturelicenseamendmentsorrenewalinamanner
consistentwithitsAgreementStateprogram.Byengaginginthisprocess,theStatecanmake
thetransitionprocessforexistinglicensessimpleandavoidanypotentialcompatibilityissuesor
theexpenditureofresourcesforunnecessaryregulatoryactions.Forexample,whentheState
ofUtahobtainedAgreementStateauthorityoversourcematerialrecoveryin2004,itaccepted
theexistinglicenseforthenIUSAs,nowEnergyFuelsResources,WhiteMesaMillverbatim
andthenproceededtoaddressallfuturelicensingactionsinaccordancewithitsAgreement
Stateprogram.

TheStateisalsofreetoamendexistinglicensestotheextentitisnecessarytotransition
sitespecificlicenseconditionstocomportwithAgreementStateprogramrequirements.

Typically,theseamendmentsareadministrativeinnaturebycrossreferencingfromNRC
regulationsorlicenseconditionstoanynewAgreementStateprogramformatforits
regulationsorlicenseconditions.Moresweepingamendmentssuchassubstantivelyaltering
licenseconditionsarenotrecommendedatleastinitiallyastheycouldchangelicense
conditionsthatalreadyhavebeendeemedadequatetosatisfyNRCregulationswhich,by
implication,satisfyAgreementStateadequacyandcompatibilityrequirements.Intheevent
thatamendmentsaretobemadethatextendbeyondessentiallyadministrativeactionsthe
Statecanaddresssuchitemsforexistinglicensesinthenextlicenserenewalapplication.

Thetransitionprocessforpendinglicensingactionsprovidesdifferentadministrative
challenges.ThetwobestavailableoptionsfortheStatetoconsiderwhendevelopinga
proposedtransitionpolicyare(1)transferringallexistingreviewdocumentsandconclusionson
pendinglicensingactionsdirectlytotheStateimmediatelyuponexecutionoftheSection274
Agreementor(2)allowingNRCtocompletethereviewprocessforpendinglicensingactions
whiletheStatereceivesandreviewsanynewlicensingactionssubmittedeitherdirectlytothe
StateortoNRCpriortoitsconductofdetailedtechnicalreview.

Theformertransitionprocesshasbothpositiveandnegativecharacteristics.Onthe
positiveside,whenallpendinglicensingactionsandtheirreviewsaretransferredtotheState,
theAgreementStateprogrameffectivelyhastakenovertheprocessandsuchpendinglicensing
actionscanbereviewedunderthenewprogram.Thisensuresthatanewlyissuedoperating
licenseorlicenseamendmentwillbeinaccordwithAgreementStateprogramrequirements
andwillprovideadequate,representativeexamplesforIMPEPreviewbyNRC.Onthenegative
side,itisimpossibletopredictuntiltheveryendoftheAgreementStateprocesswhereall
pendinglicensingactionsareinthereviewprocess.ThefollowingTableshowsexamplesof
wherependinglicensingactionsmaybeinthereviewprocessandapproximatetimeframesfor
finalagencyaction:











125

TABLE11: NRCREVIEWPROCESSINPHASES(PROJECTED)

LICENSINGREVIEW ESTIMATEDFINALAGENCY
WORKCOMPLETED
PHASE ACTIONTIMEFRAME

DETERMINATIONOFADEQUACYTOPROCEEDTO
ACCEPTANCEREVIEW 6090DAYSFROMSUBMISSION
DETAILEDREVIEW
185215DAYSFROMDOCKETING
ISSUANCEOFQUESTIONSFORCOMPLETIONOF
RAIPHASE 30DAYACCEPTANCEREVIEW
DETAILEDREVIEW
PERIODFORRAIRESPONSES
180DAYSFROMRECEIVINGAND
FINALDRAFTSER PRELIMINARYFINDINGSOFSAFETYREVIEW
ACCEPTINGRAIRESPONSES
120150DAYSAFTERACCEPTING
DRAFTLICENSECONDITIONS PRELIMINARYLICENSECONDITIONS
RAIRESPONSES

DRAFTPART51DOCUMENT PRELIMINARYFINDINGSOFPART51REVIEW(IN 240DAYSAFTERACCEPTINGRAI


(EIS,SEIS,EA) EIS&SEISCASES,PENDINGPUBLICCOMMENT) RESPONSES

PRIORTOISSUANCEOFPART51
FINALSER FINALSAFETYREVIEWFINDINGS
DOCUMENT
FINALCONDITIONSATTACHEDTOLICENSE
FINALLICENSECONDITIONS 3045DAYSBEFORELICENSING
APPLICATIONIFAPPROVED
3045DAYSBEFORELICENSE
FINALPART51DOCUMENT FINALENVIRONMENTALREVIEWFINDINGS
ISSUANCE

LICENSEISSUED FINALAGENCYACTION 2430MONTHSFROMDOCKETING

2. TRANSITIONOPTIONSANDEVALUATION

i. IMMEDIATETRANSITION

ImmediatetransitionofthesependinglicensingactionstotheStatepotentiallycould
resultinaseriesofdelaysandduplicativereviews,becauseStateregulatorswouldberequired
toreassesstheworkalreadycompletedbyNRCStaff.Dependingonthephaseofthereview,
theStatemayhavetorereviewRAIsordraftlicenseconditionsthatmightnotcomportwith
theAgreementStateprogram.Further,formandatoryNRCprocessessuchastheNHPA
Section106process,immediatetransitionmayresultininconsistenciesintheseprocesses,
especiallywhenStateseitherdonotsubscribetosuchprocessesorhaverelatedprocessesthat
areinconsistentwithNRCs.Additionally,forsitespecificenvironmentalreviews,the
documentationpreparedbyNRCStafffornewoperatinglicenses(EISfornewconventional
mills/heapleachfacilitiesandSEISforISRfacilities)maybeinconsistentwithWDEQsadopted
environmentalreviewrequirements.Inthatcase,additionaltimeandresourceswillneedtobe
expended.

ii. PHASEDTRANSITION

Theoptionoftransitionofexistinglicensesandpendinglicensingactionsnotyetin
detailedtechnicalreviewatNRCandallowingNRCtocompletereviewofremainingpending
licensingactionsindetailedreviewalsohaspositiveandnegativeaspects.Onthepositiveside,
byfollowingthisprocess,theStatewillbeavoidingthepotentialinconsistenciesand
unnecessarilyduplicativelicensingreviews.However,onthenegativeside,WDEQlikelywill
havetoexpendresourcestointegrateitselfintoNRCStaffsreviewprocesstounderstandthe
analysesbeingperformedandtheapprovalsbeingissued.Further,theStatewillberequiredto
expendadditionaltimeandresourcestransitioningnewlyissuedlicensestoWDEQequivalent
licenses/permitsorintegratingapprovedlicenseamendmentsorrenewalsintoexistingand
alreadytransferredlicenses.ItisrecommendedthattheStateconsultextensivelywithNRC
StaffduringtheAgreementStateprocesstodeterminewhichapproachismorepracticable
and,ifnecessary,explorepotentialalternatives.

Priortoengagingintransition,theStatealsoshouldassessthecomparativeanalyses
performedundertherecommendedactionitemsinCategory1and2forpromulgated
AgreementStateregulationsandwhetherthereareanycontradictoryorduplicative
regulationsinWDEQLandQualityDivision(LQD)orWaterQualityDivision(WQD).For
example,sincetheStatehasSDWAprimacyforaUICprogram,WQDhasregulationspertaining
directlytogroundwaterrestoration.However,NRChasinterpretedtheAEAtoprovideitwith
authorityovergroundwaterrestorationwhendealingwithAEAoperationssuchasISR.Inthe
promulgatedAgreementStateregulations,theStateshouldevaluatewhetherand/orhow
WQDregulationscomportwiththeAgreementStateprogramregulations.Thisanalysisshould
beconductedforallpromulgatedAgreementStateregulations.

D. SUGGESTEDAPPROACHFORCATEGORY2

1. DEVELOPAPROPOSEDTRANSITIONPOLICYFOREXISTINGLICENSESANDPENDING
LICENSINGACTIONS

Asstatedabove,Recommendation1istodevelopaproposedtransitionpolicyfor
discussionwithNRC.FrequentinteractionwithNRCStaffwillbenecessarytoobtain
concurrenceontheproposedtransitionprocess,sothattransitionhappenssmoothlyand
withoutanyunnecessarydelays,whichalwaysresultsinunnecessaryexpenditureoftimeand
resources.Infurtheranceofthispolicy,theStateshouldconsiderdevelopingasetofmeetings
withexistinglicenseesandlicenseapplicants,potentiallywithNRCStaffpresent,toexplainthe
Statespolicyandhowtransitionwillbeeffected.

2. DEVELOPNEWLEGISLATIONAND/ORREGULATIONSFORINCONSISTENCIESOR
CONTRADICTORYREQUIREMENTS/EVALUATEFEDERALRULEMAKINGCHANGES

AfteranevaluationofthepromulgatedAgreementStateregulations,theStateshould
determinewhethernewlegislationwillberequiredandwhetheranynewrulemaking
proceedingswillbenecessarytoreviseoreliminateanyinconsistenciesorcontradictory
regulations.Further,theassessmentshouldevaluatewhetherthecurrentadministrative
structureofWDEQ/LQDandWQDneedsrestructuringandwhethernewlegislationisneeded
forthis.Withrespecttoregulatoryinconsistenciesorcontradictions,NRCsinputshouldbe
solicited.

3. UPDATELICENSEEANDLICENSEAPPLICANTLISTSFROMCATEGORY1

Recommendation3suggeststhattheStateupdatetheCategory1listsofexisting
licensesandpendinglicensingactionspriortotransition,sotheStatewillbetterunderstand
thelevelofresourcesnecessarytocommenceoperationofanAgreementStateprogram.
Thereisconsiderableflexibilityinthisaspectbecause,forexample,theStateofIdaho,its
Agreementwasexecutedseveralmonthsbeforeitbecameeffective.Thus,theStatehas
sufficientadvancetimetoassessresources.Itisimportanttodothisbecauseastheuranium
marketandproposedlicensingactionschange,therequisitebudgetandstaffingrequirements
willchangeovertheproposedfive(5)yeartimeframe.Thus,thelistsinCategory1willchange
asproposedactionsareapprovedbyNRC,underNRCreview,delayedinsubmissionornot
proposedatall.

4. FINALIZEGUIDANCEPOLICYANDFEESTRUCTUREAPPROACH

TheCategory1recommendationonadoptionofNRCguidanceandpolicyshouldbe
finalizedpriortotransition.Bythistime,theStateshouldhaveobtainedNRCStaffs
concurrenceonthepolicyandshouldbepreparedtodiscussanyadditionalchangeswithNRC.
Uponfinalizationofthisadoptionpolicy,theStateshoulddevelopadatabasesimilartothatof

128

NRCsothatlicensees,licenseapplicants,andinterestedstakeholderscaneasilyfindanduse
anyincorporatedguidance.












129

Thefollowingchartdetailsthebudgetandstaffingrequirementsforeachoftheserecommendations:

TABLE12: PRODUCTDELIVERABLECHARTFORCATEGORY2

PRODUCTDELIVERABLE DESCRIPTION

NEGOTIATEANDDEVELOPDRAFTTRANSITIONPOLICYDOCUMENTWITHNRCSTAFF
DEVELOPPROPOSEDTRANSITIONPOLICY ASSISTANCE

DEVELOPNEWLEGISLATIONAND/OR
REGULATIONSFOR ADDRESSEXISTINGORDRAFTNEWLEGISLATIONANDREGULATIONDOCUMENTSFOR
INCONSISTENCIES/EVALUATERULEMAKING LEGISLATIVECONSIDERATIONANDRULEMAKINGEVALUATION
CHANGES

UPDATELICENSEE&LICENSEAPPLICANTLISTS REVIEWNRCADAMSDATABASEANDSOLICITLICENSEEINPUTONUPDATESTOPROJECTED
FROMCATEGORY1 LICENSINGACTIONSCHEDULES

FINALIZEGUIDANCEADOPTION,PUBLIC
COMPLETEALLDOCUMENTATIONANDINTEGRATEINTOPROPOSEDREGULATIONSAND/OR
PARTICIPATION,ANDFEESTRUCTURE POLICIESWHEREAPPROPRIATE
APPROACHES

III. CATEGORY3:MAINTENANCEANDOPERATIONOFAGREEMENTSTATESTATUS

A. ASSESSMENTOFPROCESSTORELINQUISHALLORPARTOFAGREEMENTSTATE
STATUS

AsamatteroflawundertheAEA(Section274(j))andCommissionregulations,States
thatpursue,obtain,andoperateanAgreementStateprogramarepermittedtorelinquishallor
partoftheregulatoryauthoritygrantedunderaSection274Agreement.SinceAgreementscan
coveroneormoreAEAmaterialsand/orprocesses,partialrelinquishmentofanAgreementis
permissible.ThereareexamplesavailablethatshowhowaSection274Agreementcanbe
terminatedbyNRCandregulatoryauthorityovertherelevantAEAmaterialsandoperations
canberestoredtoNRC.Theseexamplesarediscussedbelow:

1. PROCESSOFRELINQUISHINGPARTIALORCOMPLETEAGREEMENTSTATEAUTHORITY

Priortodescribingsomeexamplesofrelinquishing(IdahoandGeorgia),failuretoaccept
newlygrantedauthority(NewMexico)orhavingallorpartofitsprogramputonprobationary
status(Georgia),itisimportanttodescribeNRCsprocessforrelinquishingAgreementState
authority.Asageneralmatter,aSection274Agreementcanbeterminatedeitheruponthe
requestoftheAgreementStateorupontheinitiativeofNRC.Reasonsforthesetypesof
actionsrangefromaStatelackingadequateresourcestooperatetheprogramtocontinued
violationofcompatibilityandadequacyrequirementsorfailuretomaintaintheAgreement
StateprograminaccordancewithNRCrequirements.Forpurposesofthisfeasibilitystudy,the
processforterminatinganAgreement,regardlessofcause,iswhatisrelevant.

NRCsproceduresforterminatingaSection274Agreementcanbefoundinitsguidance
documentlabeledSA115entitledTerminationofaSection274bAgreement.202More
specifically,thisguidancestatesthat:

Section274jofthe[AtomicEnergy]Act,asamended,allowstheCommission,
uponitsowninitiativeafterreasonablenoticeandopportunityforhearingto
theState,oruponrequestoftheGovernorofsuchState,toterminateits
AgreementwithaStateifsuchterminationisrequiredtoprotectthepublic
healthandsafety,oriftheStatehasnotcompliedwithoneormoreofthe
requirementsofSection274oftheAct(e.g.,isfoundtobenotcompatible
withtheCommissionsprogram).203

WhileasignificantportionoftheSA115guidancereferstopoliciesandproceduresassociated
withterminatinganAgreementupontheCommissionsinitiative,forpurposesofthisstudy,
Thompson&Pugsley,PLLCwilldiscusstheprocessassociatedwithterminationuponthe

202
UnitedStatesNuclearRegulatoryCommission,SA115,TerminationofaSection274bAgreement,
September25,2007).
203
Id.

Statesinitiative.Asisshownbelow,theinternalNRCproceduresassociatedwithterminatinga
Section274Agreementarenottoodissimilarfromthoseassociatedwithinitiatingand
completingtheAgreementStateprocess.

InSectionVofSA115,NRCstatesthat[a]ttherequestoftheGovernor,theNRCmay
terminateallorpartofitsAgreementwithaStateandreassertitsauthority.Basedonthe
guidance,thefirststepinterminatinganAgreementwithNRCisfortheGovernortoprepare
andsendalettertotheNRCChairmanstatingtheStatesintentiontorelinquishallorpartofits
Agreementandthereasonstherefore.Uponreceiptofthisletter,NRCsManagementReview
Board(MRB),whichistaskedwithconsideringallaspectsofAgreementStateprogramreview
andwithadvisingtheCommissionwhetheraprogramshouldbeterminated,willprocessthe
StatesrequestandconsidereachandeveryreasonnotedbytheGovernorastowhythe
Agreementshouldbeterminatedinwholeorpart.Uponfinalprocessingofthisrequest,the
MRBdiscussesitsfindingswiththeExecutiveDirectorforOperations(EDO)and,ifa
recommendationiswarranted,suchrecommendationwillbemadetotheCommissionto
terminate.

IftherecommendationtotheCommissionistoinitiateterminationproceedingsforthe
StatesAgreement,thenFSMEwilltaketheleadinthedevelopmentofaCommissionpaper
whereinNRCStaffwillinformtheCommissionofMRBsfindingsandrecommendationsaswell
asotherrelevantitemsincluding,butnotlimitedto,potentialresourceimplicationsforthe
agencytoreassertregulatoryauthority.AsampleCommissionpaperandaccompanying
FederalRegisternoticeisattachedtothisstudy.204ShouldtheCommissiondecidetoterminate
theAgreement,asecondCommissionpaperwillbeprepared.SA115,AppendixCisasample
CommissionpaperwhereintheStaterequeststermination.LiketheAgreementStateprocess
describedaboveinCategory1,FSMEwilldraftandsubmitapressrelease,lettersto
appropriateCongressionalcommitteesanddelegations,aswellasrelevantfederalagencies,
Statelicensees,andAgreementandnonAgreementStates.

TheremainderoftheterminationprocessisrelativelystraightforwardwhentheState
requestssuchtermination.Section274(j)(1)oftheAEAdoesnotrequirethattheCommission
granttheStateanopportunityforahearingontheproposedtermination.Thismakessense
becausetheonlypotentiallyinterestedpartyinsuchaproceedingwillbetheStateand,inthis
instance,therewillnoissueoflaw,regulationorfact.Withouttheneedforahearing,the
CommissionthenproceedstomakeafinaldecisionontheStatesrequest.

DuringthetimeperiodfromwhentheGovernorformallyrequeststerminationofthe
StatesAgreement,SA115directsNRCandtheStatetocoordinateregulatoryactivities
includingitemssuchasinspectionsandlicensingactionreviewssothatpublichealthandsafety
isprotected.AccordingtoSA115,FSMEwillcoordinatewiththeStateandRegionastoany
technicalassistancenecessarytoensurethiscontinuedprotection[ofpublichealthand
safety].Uponfinaldeterminationtoterminate,NRCpreparesandissuesletterstorelevant

204
Id.atAppendixA.

132

federalagenciesandallAgreementandnonAgreementStatesadvisingthemofthedateofthe
Agreementstermination.

WithrespecttointeractionswiththeStateposttermination,NRCsRSAOwilldirectthe
Statetoprovideitwithacompletelistingofallgeneralandspecificlicenseshandledbythe
AgreementStateprogramatthetimeoftermination.Uponreceiptofthislist,NRCwilldraft
andissueletterstoeachlicenseeinformingthemoftheAgreementstermination,reassertion
oftheCommissionsauthority,andotherinformationasnecessary.Uponidentifyingthese
licensees,theRegionalOffice(RegionIVinthiscase),OGC,andOfficeoftheChiefFinancial
Officer(OCFO)willorganizeandholdameetingwithStatelicenseestoexplainthetransition
backtoNRCauthority,includingreinstatementofNRCsfeeprogram.Aftercompletionofall
theseitems,theStatesAgreementeffectivelycanbeconsideredterminated.Lastly,SA115
specificallystatesthatanyStatethatrelinquishesallorpartofaSection274Agreementis
permittedtoreapplyatalaterdatetoreacquireregulatoryauthorityfromtheCommission.
TheguidancestatesthatthereapplyingStatewillbetreatedasanyotherStateseeking
regulatoryauthorityfromtheCommission.

2. REPRESENTATIVEAGREEMENTSTATECASESTUDIES

InordertoproperlyillustratethepotentialforrelinquishingallorpartofAgreement
StatestatusintheeventtheStateofWyomingelectstoproceedtowardssuchstatus,this
feasibilitystudyisofferingcursorydiscussionsofseveralAgreementStatesthathave
experiencedpartofthisprocess.Theseexamplesarediscussedbelow:

i. STATEOFIDAHO

EffectiveOctober1,1968,theStateofIdahoexecutedaSection274Agreementwith
NRCtoobtainregulatoryauthorityoverbyproductmaterial,sourcematerial,andspecial
nuclearmaterialinquantitiesnotsufficienttoformacriticalmass.205Atthetimethis
Agreementwasexecuted,CongresshadnotyetenactedUMTRCA,whichcreatedtheseparate
classofAEAmaterialknownas11e.(2)byproductmaterialgeneratedbytheAEAlicensed
operationknownassourcematerialrecovery.TothebestofThompsonandPugsley,PLLCs
knowledge,Idahoneverattemptedtoobtainregulatoryauthorityover11e.(2)byproduct
materialandsourcematerialrecoveryafterpassageofUMTRCAin1978.

IdahooperatedthisprogramfromOctober1,1968,untilthenGovernorCecilAndrus
submittedalettertoNRCrequestingthattheagencyresumeregulatoryauthorityoverthe
aforementionedAEAmaterials.TheFederalRegisternoticeassociatedwiththisletternotes
thattheGovernorrequestedAgreementterminationbecauseofseverebudgetconstraints,as
wellasothercompellingreasons.206Thisnoticealsocontainedseveralpiecesofinformation

205
SeeExhibit2.
206
SeeExhibit83.

133

regardingthetransitionofregulatoryauthoritybacktoNRC,includingadirectivethatany
entitiesseekinglicensesfortheseAEAmaterialsapplytotheappropriateNRCRegionaloffice.
Accordingtoa1993GAOTestimonialrecordentitledNRCsNuclearMaterialsProgramNeeds
ImprovementtoProtectPublicHealthandSafety,inasearlyas1987,Idahobegantoexperience
problemsduetoinadequatestaffingandresourcesthatresultedinoverdueinspectionsandthe
inabilitytoappointadditionalpersonnelforregulationofAEAmaterials.Thisappearstohave
promptedtheGovernorsactiontoterminatetheStatesAgreementwithNRC.

Essentially,IdahorelinquisheditsAgreementStateprogramduetoalackofresources
anddeterminedthatitwouldbeunabletocontinueoperatingtheAgreementStateprogram.
ItisunclearastowhetherthisdecisionwasreachedafterdiscussionswithNRCorunilaterally
bytheState;however,forpurposesofthisstudy,thecriticalelementistheprocessbywhich
theStatevoluntarilyrelinquisheditsAgreementStateprogram.

ii. STATEOFNEWMEXICO

EffectiveMay1,1974,theStateofNewMexicoenteredintoaSection274Agreement
similartothatenteredintobyIdaho.ThisAgreementsoughtregulatoryauthorityover
byproductmaterial,sourcematerial,andspecialnuclearmaterialinquantitiesnotsufficientto
formacriticalmass.AswithIdaho,NewMexicosAgreementwasexecutedbeforeCongress
passageofUMTRCAandthecreationof11e.(2)byproductmaterialgeneratedbyAEAlicensed
sourcematerialrecoveryasAEAmaterialsandoperations.However,unlikeIdaho,NewMexico
continuedtoregulateuraniummillswithinitsboundaryuntilUMTRCAspassage.Thus,the
termbyproductmaterialinthe1974Agreementdidnotexplicitlyorimplicitlyinclude
regulatoryauthorityover11e.(2)byproductmaterial.

DuetothisfactorandupuntiltheGovernorsrequest,NewMexicocontinuedto
regulatetheuraniummillsinitsjurisdictionundertheexisting1974Agreement.However,
uponreceiptoftheGovernorsrequesttorelinquishthisauthority,theprocessasarticulatedin
SA115commenced.A1986CommissiondecisionontheGovernorsrequesttorelinquish
regulatoryauthorityover11e.(2)byproductmaterialandsourcematerialrecoverystated,its
Agreementdoesnotincludeaneededamendmenttocoverthecontinuedregulationbythe
Stateofthebyproductmaterial(asdefinedinSection11e.(2)ofthe[AtomicEnergy]Act)
producedbytheextractionorconcentrationofsourcematerialfromsourcematerialore.For
thisandotherreasons,theGovernoroftheStatehasadvisedtheCommissionthattheStateis
nolongerinapositiontoadministerthatportionofitsAgreementStateprogramandhas
requesteditsreturntoCommissionjurisdiction.207

207
AfterthepassageofUMTRCAandthecreationofaseparateregulatoryprogramforsourcematerial
recoveryand11e.(2)byproductmaterial,AgreementStatescurrentlyregulatingsourcematerial
recoveryfacilitiesweregivenanopportunitytoapplyforandobtainanamendmenttoitsthencurrent
Section274Agreementtoaddthisprogram.Asshownabove,NewMexicodidnotchoosetoobtainthis
amendment.

134

iii. STATEOFGEORGIA

TheStateofGeorgiaisarecentexampleofhowNRCcanputanAgreementStateon
probationandthenhowtheStatecanvoluntarilyrelinquishpartofitsAgreementState
authority.Recently,NRCplacedGeorgiasAgreementStateprogramonprobationcitinga2008
MRBreviewthatplacedGeorgiasprogramonaconditionofMonitoringduetothe
programsdeficiencies.

AfteritsrecentIMPEPreview,NRCfoundGeorgiasprogramtobecompatiblewithin
thescopeofAgreementStatecriteria,butafailureintwoperformanceindicators:(1)
technicalqualityofinspectionsand(2)technicalqualityofincidentandallegationactivities
resultedintheneedfortheprogramtobeputonprobation.Theprogramalsowasfoundto
besatisfactorybutneedingimprovementforthree(3)performanceindicators:(1)technical
staffingandtraining,(2)statusofmaterialsinspectionprogram,and(3)technicalqualityof
licensingactions.Asaresultofthis,theMRBscheduledaJanuary,2014IMPEPreviewto
evaluatewhethertheStateadequatelyaddressedtheperformanceindicatorsidentified
above.ShouldtheStateadequatelyaddresstheseindicators,theMRBcouldrecommendthat
theprobationstatusbelifted.

Aftertheissuanceofthisfinding,Georgiadeterminedthatitwouldvoluntarily
relinquishpartofitsAgreementStateprogram.OnAugust22,2013,NRCissuedaFederal
RegisternoticeannouncingthattheportionofGeorgiasAgreementStateprogramdevotedto
evaluatingandapprovingsealedsourcesanddeviceswastobereturnedtoNRCandthatthe
agencywouldreassumeregulatoryauthorityoversuchactions.TheNoticealsostatedthatthe
StatehadvoluntarilyrequestedthatthisauthoritybereturnedtoNRCbyaletterfromthe
GovernordatedJune5,2013.Thisletterindicatedthatthereasonforthisrequestwasthatit
hasbecomeincreasinglychallengingforGeorgiatorecruitandretainthepersonnelnecessary
toperformthespecializedactivities.Thus,itappearsthattheavailabilityofsufficient
skilledpersonnelplayedalargeroleintheStatesdecision.

Ascanbedemonstratedbythethree(3)examplesabove,onewheretheentireSection
274AgreementwasreturnedtoNRC(Idaho),onewheretheStaterelinquishedasmallportion
ofitsAgreementStatestatus(Georgia),andonewherenewlycreatedauthoritywasnever
accepted(sourcematerialrecoveryand11e.(2)byproductmaterial)wasleftwithNRC(New
Mexico),relinquishingAgreementStateauthorityupontheinitiativeoftheStateisawell
understoodandstraightforwardprocess.

B. MAINTENANCEANDOPERATIONOFAGREEMENTSTATESTATUS

1. URANIUMMARKETOVERVIEW

Totheextentpracticable,thisfeasibilitystudywilldiscussforecastsofuraniumsupply
anddemandoverthenextten(10)yearsinanefforttoassistinadeterminationwhetheror
nottherewillbesufficientsourcematerialrecoveryintheStateofWyomingoverthatperiod

135

toensurethatadequatefundingthroughafeeprogramwillbeavailabletosustainaproposed
AgreementStateprogram.Overthepastdecade,theuraniummarkethasbeenvolatileand
hasseenbothspotmarketandlongtermcontractpricesfluctuatebasedonaninitially
depressedmarket,followedbyasignificantupturn,andarecentdownturnbutwithapositive
outlookonthehorizon.ThisSectionwillattempttocharacterizetherecentten(10)year
timeframeoftheuraniummarketanddescribepotentialfutureconditionsthatmaycontribute
toanincreaseordecreaseinsupplyandcommodityprice.

2. MARKETCONDITIONS

i. MARKETCONDITIONS(PRE2005)

From1973to1975,thepriceofuraniumapproximatelytripledforavarietyofreasons
includingtheforecastofauraniumshortfallandgrowingdemandfornewnuclearpower
reactors.But,duetotheincidentatThreeMileIslandintheCommonwealthofPennsylvaniain
1979,subsequentcancellationofnuclearpowerreactororders,anhaltsinconstructionofnew
nuclearpowerreactorunits,demandforuraniumintheUnitedStateswaslimitedtoexisting
powerreactorsandothernuclearfacilitiessuchasnavalvesselsandsubmarines.Onthe
internationalside,asimilardownturninthedemandforuraniumworldwidewasmanifested
andutilitiesmaintainedlargestockpilesofuraniumfrompreviouspurchases.

Governmentagreementsandprogramsalsohavecontributednegativelytouranium
pricesbygenerallyincreasingavailablesuppliesofuranium.Domestically,DOEhad(andhas)a
largeuraniuminventorythatwhenreleasedintothemarketbecomesanegativeinfluenceon
uraniumprices.DOEhasseenthisinventoryasasourceofvaluetofundenrichment
decommissioningactivities.Theoretically,DOEisrequiredbyDOEOrder410.2entitled
ManagementofNuclearMaterialstoassessandavoidpotentialnegativeimpactsofa
transfer/saleofanyportionofthisinventoryonthedomesticuraniumrecoveryindustry.Over
timeanddespiteuraniumindustryargumentstothecontrary,DOEhastransferredsignificant
portionsofthisinventoryintheformofnaturalorlowenricheduranium(LEU)thathas
significantlyandnegativelyinfluenceduraniumprices.

Inaddition,PresidentClintonimplementedaprogramin1993calledtheMegatonsto
Megawatts.208ThisprogramwasanagreementbetweentheUnitedStatesandRussiatofoster
nonproliferationbyallowingforthetransferofRussianhighenricheduranium(HEU)from
nuclearweaponstoaUnitedStatesbasedfacilityfordownblendingintoLEUforuseinnuclear
powerreactorsorotherfacilitiesrequiringnuclearfuel.Thisagreementhadagoalof
eliminatingapproximately500metrictonsofRussianweaponsgradeHEUbytheendofits
term.AsofDecemberof2012,approximately472.5metrictonsofthisHEUhadbeen
eliminatedanddownblendedintoLEUfornuclearfuel.Basicallyelectricitygeneratedfromthis
programhassupplied1in10Americanhomeswithelectricity.Tounderstandtheimpactof
thisontheuraniummarket,from1993to2004,theprogramdownblendedapproximatelyfive

208
Seehttp://en.wikipedia.org/wiki/Megatons_to_Megawatts_Program.

136

hundred(500)metrictonsofHEUforLEUnuclearfuel,whichhassupplied13%oftheworlds
or45%oftheUnitedStatesannualuraniumneeds.

Withthesenegativeinfluencespresentinthemarketplaceandthelackofnewnuclear
powerplantconstruction,in2004,thespotmarketpriceofuraniumstoodat$7.50perpound.
Toputthisperspective,in2004,apoundofuraniumgeneratedfromconventionaluranium
millingoperationscostapproximately$4050perpoundtorecover.Apoundofnatural
uraniumgeneratedfromISRoperationscostapproximately$2530perpoundtorecover.As
canbeseenfromthesescenarios,theuraniummarketin2004wasnotfavorabletothe
recoveryofuranium.Indeed,accordingtotheEnergyInformationAdministration(EIA),United
Statesbasedfacilitiesgeneratedapproximatelytwo(2)millionpoundsofuranium.Giventhat
therewere104operatingnuclearpowerreactorsintheUnitedStatesatthattimeandthey
require500,000poundsofnaturaluraniumequivalentperyeartoreload,domesticuranium
productionrefueledonlyfour(4)ofthese104reactors.

ii. MARKETCONDITIONS(20052013)

In2005,theinterestinseekingnewsourcesofelectricityfromnuclearpowerbeganto
grow.Thedemandfornewnuclearpowerreactorunitsbegantorisefueledbyincreased
interestfromoverseasmarkets,mostnotablyIndiaandChinawithgrowingpopulationsand
significantincreasesindemandforefficientgenerationofelectricity.Indeed,onan
internationalbasis,therehavebeenannouncementsfortheconstructionofapproximately60
newnuclearpowerreactorunitsinthirteen(13)differentcountries,includingthefour(4)
alreadylicensednewreactorunitsintheUnitedStatesandover100proposedreactorsunitsin
ChinaandIndiaalone.209Thispotentialincreaseindemandcoincidedwithapotentialshortfall
ofuraniumsuppliesfornuclearutilitiesandalackofavailableprimaryproduction.Accordingly,
atthispoint,uraniumpricesslowlybegantorise.From2005to2006,thespotmarketpriceof
uraniumrosefromapproximately$10perpoundto$20perpoundandcontinuedtoriseuntilit
reachedathirtyyearhighofapproximately$135perpoundin2007.Asaresult,agencieslike
BLMexperiencedasignificantincreaseinminingclaimsforuraniumonpubliclandsandprivate
claimsalsosignificantlyincreased.Startingin2005,potentialandcurrentdomesticuranium
producersbegantofilelettersofintent(LOI)withNRCindicatingthattheywouldbesubmitting
licenseapplicationsfornewoperatinglicenses(UraniumOneAmericas/MooreRanch,Uranerz
EnergyCorp/Hank&NicholsRanch,andUrEnergyLostCreekISR,LLC/LostCreek).This
increaseinpressureonagencyresourcesledNRCtorequestCommissionauthorizationfor
developmentofagenericenvironmentalimpactstatementforISRfacilities,givenindustrys
indicationthatISRwouldbetheprimarysourceofdomesticuraniumproduction.NRCStaffs
requestwasgrantedandtheISRGEIS(NUREG1910)wasgenerated.AsnotedinTables6&7
above,sincetheISRGEIS(NUREG1910)developmentapproximatelyfive(5)newoperating

209
Seehttp://www.worldnuclear.org/info/CurrentandFutureGeneration/PlansForNewReactors
Worldwide/.

137

licenseshavebeenappliedforintheStateofWyomingalone(three(3)issued)andeight(8)
newoperatinglicensesintotal.

Evenwiththisincreasedinterestinlicensingandconstructingnewuraniumrecovery
facilities,theuraniumpricehasremainedvolatile.Afterreachingaspotmarketpricehighof
$135perpoundin2007notedabove,thepriceofuraniumbegantostabilizeatapproximately
$100perpound.Then,in2010,thenuclearincidentatJapansFukishimaDaiichinuclear
facilityoccurredduetofailureofsecondarysystemstorespondtotheimpactofatsunamithat
struckthenuclearplantfacilities.Thisincidentsparkedasharpdownturnofuraniumpricesto
$50perpoundasofJuneof2012.FromJune,2012tothepresentday,thepriceofuranium
restsat$38.25perpound.

iii. MARKETCONDITIONS(20132023)

Priortoengaginginadiscussionofpotentialfuturepricesintheuraniumcommodity
market,itisimportanttonotethatstatementsmadeinthisSectionarespeculativeandare
relyingsolelyonpubliclyavailableinformation.Asallcommoditymarketscanbe
unpredictable,thisdiscussionwillrelyonlogicalconclusionsfromtheaforementioned
information.

Despitesomerecentdecisionsbyindustrymemberstoceasefurtherwellfield
development,tonotconstructtheentiretyoftheirfacilityortoenterintotollmilling
agreementswithexistingproducers,licenseapplicationsfornewoperatinglicensesandfor
additionalsatellitefacilitiesaddedontoexistingoperatinglicenseshavecontinuedtobe
submittedtoNRCanditsAgreementStatesforapproval.AsstatedinTable7above,industry
membersnowhaveseveralapplicationsbeforeNRCandAgreementStatesfornewoperating
licensesorsatelliteISRfacilities.Thisappearstoindicatethatindustrymembersbelievethat
uraniumpriceswillrisetoalevelwhereadditionalproductioncanbejustified.

Further,marketanalystsaroundtheglobehaveconsistentlybeenestimatingthatthe
priceofuraniumwillrisesignificantlyfromthecurrentlowof$38.25perpound.Several
factorsarecontributingtothisanalysis,mostnotablythelapsingoftheaforementioned
MegatonstoMegawattsprogramattheendof2013.Asstatedabove,thegoaloftheprogram
wastodownblendapproximately500metrictonsofRussianweaponsgradeHEUtoLEUfor
nuclearfuel.Theprogramwillmeetthisgoalattheendof2013andtheagreementwilllapse.
Indicationsarethattheagreementwillnotberenewedforanadditionaltermlikelybasedon
Russiasdesiretodispensewiththeremaininguraniumatitsowndiscretion.Thelapsingofthis
agreementpotentiallywillresultinasignificantincreaseindemandfornaturaluraniuminthe
nextdecadetofillthatgap.Addedtothis,theincreasedinterestinconstructingnewnuclear
powerreactorsbothdomesticandinternational,thediminishinguraniumstockpilesatexisting
nuclearutilitiesanddelayeddevelopmentofprimaryuraniumproductioncapacityworldwide

138

hascausedmarketanalyststobelievethattheuraniumpricewillincreasetoapproximately
$7080perpoundby2015.210

Shouldtheuraniumpricesustainitselfatapproximately$70dollarsperpound,itis
likelythattheStatewillseeanincreaseinuraniumproductionbythetimeitwouldachieve
AgreementStatestatusinapproximately2019.Basedoncurrentoperations,operatinglicenses
awaitingconstructionandproduction,pendinglicenseapplicationsbeforeNRC,andLOI
indicatedfuturelicenseapplications,itislikelythataproperlyimplementedfeeprogramcan
sustainaWyomingAgreementStateprogram.However,theuraniummarkethasbeen
unpredictableinthepastanditisunclearwhetherornotunforeseenmarketorotherforces
willcontributeeitherpositivelyornegativelytotheuraniumprice.Thus,itisthe
recommendationofthisfeasibilitystudythattheStateauthorizecontinuedmonitoringof
marketconditionsandfosterinteractionwithindustryandtheStateregardingthestatusofthe
marketbothdomesticallyandinternationallyonthefollowingitems:(1)proposednewnuclear
reactorfacilities;(2)statusoftheMegatonstoMegawattsprogram;(3)DOEinventoryactions
onanannualbasis;and(4)statusoflicenseapplicationsbeforeNRCbycompanyandtype.

3. INTERNATIONALEXAMPLESOFFUTUREPRODUCTIONANDDELAYS

Acontributingfactortospeculatingwhattheuraniummarketconditionswillbeforthe
five(5)yearperiodforbecominganAgreementStateandthefive(5)yearsaftertheprocessis
completeistheprogressmadeoncurrenturaniumproductionprojectsworldwide.Every
uraniumprojectthatiscurrentlyprojectedtocomeonlineinthiscomingten(10)year
timeframefacesawidearrayofchallengesdependingonwheresuchprojectsareontheir
criticalpath.Forexample,projectsthathavenotyetenteredtheirrespectivelicensing
processesfacechallengesfromregulatoryauthoritiesregardingthelengthandresource
requirementsoftheprocessesthemselvesdependingonthecountrywheretheprojectis
located.IntheUnitedStates,therearemultipleregulatoryapprovalsrequiredfordifferent
typesofuraniumrecoveryprojects,eachofwhichtakevaryingtimeperiods.Further,smaller
companieswithinitialprojectsfacechallengesfromaresourceperspectivebecausesignificant
expendituresarerequiredtoprepareandsubmitanapplicationandtopaythefeesassociated
withtheirreview.Projectsthatareinthelicensingprocessorthathavereceivedtherequisite
regulatoryapprovalsfacecapitalinvestmentchallengesforconstructionandinitiationof
productionoperations.Inanevertighteningeconomyandwiththecurrentspotmarketprice
ofuraniumatapproximately$35perpound,manyprojectsfacesignificantinvestment
challenges.Otherprojectsthathaveproceededthroughtheconstructionphasealsoface
challengesregardinginitiationofproductionoperationssuchaspersonnelshortages,
mechanicalfailures,andothernaturaloranthropogenicissues(e.g.,minefloodingandchanges
inpoliticalgovernance).

210
SeeExhibit85,whichisapackageoffinancialarticlesprovidingasamplingofcurrentpressonstatus
andfutureoftheuraniumcommoditymarket.

139

Whiletherearemanyprojectsworldwidethatareattemptingtocomeonlinetoaddto
futureuraniumproduction,thisstudywilladdresstworepresentativeexamplesthatillustrate
thepotentialfordelays.ThefirstexampleisCamecosCigarLakeprojectintheAthabasca
BasininCanada.TheCigarLakeprojectisidentifiedasthelargestundevelopedhighgrade
uraniumdepositintheworldbyWikipedia.CamecobeganfullscalemineconstructionatCigar
Lakein2005andexperiencedsignificantinflowofwaterin2006.Thisresultedinadelayin
ordertodewaterthemineand,aftertheinitialinflowwasaddressed,asecondinflowofwater
occurredin2008whiledewateringwasbeingattempted.Completionofthedewatering
effortwasaccomplishedin2010andCamecohasproposeda2014startupdate.However,due
totheinitialfloodingandsubsequenteffortstodewaterthemine,productionhasbeen
delayedforapproximatelyseven(7)to(8)years.

ThesecondexampleisBHPBillitonsOlympicDamprojectinAustralia.TheOlympic
Damdepositisknownasthelargestsingleuraniumdepositintheworldbasedontheamount
ofuraniuminthedepositandnotbygrade.ItwaspurchasedbyBHPBillitonin2005from
WesternMiningCorporationandbeganproductionofuranium.In2008,BHPBilliton
announcedthecompletionofaprefeasibilitystudyregardingpotentialexpansionofthemines
operationswiththepotentialforinitialstartupin2013.BHPBillitonreceivedgovernment
approvalfortheexpansionin2011;however,considerablepoliticaloppositionwaslaunched
againsttheexpansionand,in2012,BHPBillitonannounceditwassuspendingsuchexpansion
pendingreviewofnewtechnologyforthemine.Thus,expansionwasdelayeduntilan
unknowntimeinthefuture.

Delaysaturaniummining/recoveryfacilitiescanexperiencedelaysforanynumberof
reasons.Theaforementionedexamplesarebutasmallpartoftherangeofpossibledelays.
Thisisoneofthereasonsthatthecurrenturaniumcommoditymarketremainsuncertainatthis
time.

C. SUGGESTEDAPPROACHFORCATEGORY3:

ThefollowingrecommendationsareofferedtotheStateasitemsthatshouldbedone
duringthefirstphaseoftheAgreementStateprocess,sothattheStatecanproperlyevaluate
howtheAgreementStateprogramwillproceedaftertransitionandwhetheritwouldbe
feasibletomaintaintheprogramovertime:

1. MONITORTHE2014IMPEPREVIEWOFTHESTATEOFGEORGIA

ItisrecommendedthattheStatecontinuetomonitortheprogressoftheStateof
Georgiathroughitsscheduled2014IMPEPreviewtoobtainadditionalinformationto
supplementthediscussioninSectionIII(A)(2)(iii).Thisismerelyaninformationgathering
exercisethatwillsupplementthisstudysanalysis.Itcanbecompletedsimplybymonitoring
NRCsAgreementStateprogramsdatabaseandseeingwhattheoutcomeisofthereview.

140


2. REASSESSURANIUMMARKETCONDITIONSIN2014

TheStateshouldconsultwithappropriateanalystsregardinguraniummarketconditions
inthethirdquarterof2014.Thetimingofthisassessmentisappropriate,becausethe
MegatonstoMegawattsprogramswillhaveterminatedsix(6)toseven(7)monthspriortothe
assessmentallowingfortheuraniummarkettoreactappropriatelyandnewprojectsmaycome
onlinepriortothatdatewhichmayinfluencethemarketaswell.Further,itislikelythatDOE
willrenderanotherevaluationofitsexistinginventoriesandwillmakeadecisiononwhetherto
releasemoreuraniumintothemarket.Again,thisrecommendationdoesnotrequire
significantresourceexpenditure.

141

TABLE13: BUDGETANDSTAFFINGPROJECTIONSFORINTERIMSTUDYITEMS

APPROXIMATE/ESTIMATED
PRODUCTDELIVERABLE DESCRIPTION PERSONNEL
COST
1STATE(WDEQ)FTE
1STATEATTORNEY
MONITORSTATEOFGEORGIA EXECUTIVESUMMARY GENERALFTE
IMPEPREVIEW LEVELREPORT 1ADMINISTRATIVE
ASSISTANT
CONSULTANT(S)
1STATE(WDEQ)FTE
1STATEATTORNEY
EXECUTIVESUMMARY GENERALFTE
URANIUMMARKETUPDATE
LEVELREPORT 1ADMINISTRATIVE
ASSISTANT
CONSULTANT(S)
ADDRESSTHE
FOLLOWING:
(1):EXISTINGWDEQ
STAFFANDROLEIN
AGREEMENTSTATE
PROGRAM;
1STATE(WDEQ)FTE
(2):NEWSTAFFFOR
1STATEATTORNEY
PROGRAM;
GENERALFTE
WDEQSTAFFINGPLAN (3):EQUIPMENTAND
1ADMINISTRATIVE
OTHER
ASSISTANT
MATERIAL/SUPPORT
CONSULTANT(S)
NEEDS;
(4):IDENTIFICATIONOF
APPROPRIATESTATE
AGENCYSTRUCTURE
FORAGREEMENTSTATE
PROGRAM

ASSESSWHATWDEQ 1STATE(WDEQ)FTE
REGULATIONSCANBE 1STATEATTORNEY
NRC/WDEQREGULATORYCROSS
USEDINAGREEMENT GENERALFTE
REFERENCECHART&
STATEPROGRAMAND 1ADMINISTRATIVE
PRELIMINARYFEESTRUCTURE
ADDITIONAL ASSISTANT
REGULATIONSNEEDED CONSULTANT(S)
1STATE(WDEQ)FTE
INITIALDRAFTOF
1STATEATTORNEY
OUTLINEOFPUBLIC RULEMAKINGAND
GENERALFTE
PARTICIPATION/RULEMAKING OTHERPUBLIC
1ADMINISTRATIVE
PROCEDURES INVOLVEMENT
ASSISTANT
PROCESSES
CONSULTANT(S)
ASSESSVIABILITYOF
1STATE(WDEQ)FTE
NRCGUIDANCE
1STATEATTORNEY
DOCUMENTSFORSTATE
OUTLINEOFGUIDANCEADOPTION GENERALFTE
ADOPTIONAND
POLICY 1ADMINISTRATIVE
POTENTIALUSEOF
ASSISTANT
EXISTINGWDEQ
CONSULTANT(S)
GUIDANCE
DETERMINEWHETHER 1STATE(WDEQ)FTE
MOUsOROTHER 1STATEATTORNEY

INFORMAL GENERALFTE
ASSESSMENTOFMOUAPPROACH
RELATIONSHIPSCAN 1ADMINISTRATIVE
ANDEXISTINGSTATEMOUS
ASSUREADEQUATE ASSISTANT
STAFFEXPERTISE CONSULTANT(S)
STATEFTECOST:$300,000

TOTALCOST
CONSULTANT(S):$215$325PER
HOUR(TIMEANDMATERIALS)

143

TABLE14: AGREEMENTSTATEPROGRAMCOSTBREAKDOWN(YEARS16)211

AGREEMENTSTATEPROCESS
DESCRIPTION212 PERSONNEL APPROXIMATE/ESTIMATEDCOST213
YEAR
1STATE(WDEQ)FTE
1STATEATTORNEY
GENERALFTE STATEFTECOST:$300,000
ITEMSIDENTIFIEDIN 1ADMINISTRATIVE
INTERIMSTUDYYEAR
TABLE13 ASSISTANT CONSULTANT(S):$215$325PERHOUR
CONSULTANT(S) (TIMEANDMATERIALS)
(TIMEAND
MATERIALSBASIS)
(1):DRAFTANDSEND
GOVERNORSLETTERTO
PROCEED
1STATE(WDEQ)FTE
(2):DRAFTANDENACT
1STATEATTORNEY
LEGISLATION STATEFTECOST:$300,000
GENERALFTE
AUTHORIZING
YEAR1(NOTDATESPECIFICAT 1ADMINISTRATIVE
GOVERNORSLETTERTO
THISTIME) ASSISTANT CONSULTANT(S):$215$325PERHOUR
PROCEED
CONSULTANT(S) (TIMEANDMATERIALS)
(3):BEGINDRAFTING:
(TIMEAND
(A)LEGISLATION
MATERIALSBASIS)
AUTHORIZING
AGREEMENTSTATE
PROGRAM;

211
TheyearsidentifiedinthisTablearenottargetedataspecificdateasnodecisionhasbeenmadebytheStatetoproceedwithdevelopment
ofanAgreementStateprogram.Thus,forpurposesofthisTable,itshouldbeassumedthattheprocesswillinvolvethefollowing:(1)uptoone
(1)yearforinterimstudyitems;(2)uptofive(5)yearsforcompletionofCategory1throughtransition;and(3)thefinalyear(Year6)beingthe
firstyearoftheprogramsoperationposttransition.
212
PleasenotethattheDescriptioninsertedinthisTableforeachitemisnotexhaustiveofallrequiredactions.
213
Pleasenotethatcostitemssuchasequipmentpurchases,travelreimbursement,andotherexpensesarenotincludedandwillbefleshedout
inthestaffingplandescribedinTable13above.

(B):AGREEMENTSTATE
PROGRAM
REGULATIONS;
(C):COMPLETEDPUBLIC
PARTICIPATIONPOLICY;
(D):COMPLETED
GUIDANCEADOPTION
POLICY;
(E):INITIALMEETINGS
WITHINTERESTED
STAKEHOLDERS
IDENTIFIEDBYNRC
STAFF
(1):COMMENCEMENT
1STATE(WDEQ)FTE
OFPUBLICMEETINGS
1STATEATTORNEY
ONPROGRAM; STATEFTECOST:$300,000
GENERALFTE
(2):COMMENCMENTOF
1ADMINISTRATIVE
YEAR2 RULEMAKINGPROCESS
ASSISTANT CONSULTANT(S):$215$325PERHOUR
FORPROGRAM
CONSULTANT(S) (TIMEANDMATERIALS)
REGULATIONS;
(TIMEAND
(3):ONGOINGNRC
MATERIALSBASIS)
STAFFCONSULTATION
(1):REVIEWOFAND
2STATE(WDEQ)FTE:
PROCESSINGPUBLIC
(DEQPROGRAM
ANDNRCSTAFF
DIRECTOR&HEALTH
COMMENTSON STATEFTECOST:$430,000
PHYSICSSTAFFER)
PROGRAM
1STATEATTORNEY
REGULATIONS;
GENERALFTE CONSULTANT(S):$215$325PERHOUR
YEAR3 (2):ONGOINGNRC
1ADMINISTRATIVE (TIMEANDMATERIALS)
STAFFCONSULTATIONS;
ASSISTANT
(3):UPDATETOWDEQ
CONSULTANT(S)
STAFFINGPLAN;
(TIMEAND
(4):DEVELOP
MATERIALSBASIS)
TRANSITIONPOLICY;

145

(5):TRAININGOF
HEALTHPHYSICSSTAFF

(1):FINALIZATIONOF
RESPONSETOPUBLIC
ANDNRCSTAFF
COMMENTSONDRAFT
PROGRAM 4STATE(WDEQ)FTE
REGULATIONS; 1STATEATTORNEY
(2):ONGOINGNRC GENERALFTE STATEFTECOST:$690,000
STAFFCONSULTATION; 1ADMINISTRATIVE
YEAR4
(3):FINALIZESTAFFING ASSISTANT CONSULTANT(S):$215$325PERHOUR
PLANANDPREPARE CONSULTANT(S) (TIMEANDMATERIALS)
FOREQUIPMENT (TIMEAND
PURCHASES(RFP); MATERIALSBASIS)
(4):HIRINGAND
TRAININGOF
ADDITIONAL
PERSONNEL
(1):FULLACTIVE
8STATE(WDEQ)FTE
PERSONNELAND
1STATEATTORNEY
COMMENCEMENT STATEFTECOST:$1,230,000
GENERALFTE
AND/ORCOMPLETION
1ADMINISTRATIVE
YEAR5 OFAGREEMENTSTATE
ASSISTANT CONSULTANT(S):$215$325PERHOUR
PROGRAMTRAINING
CONSULTANT(S) (TIMEANDMATERIALS)
(2):COMPLETIONOF
(TIMEAND
EQUIPMENT
MATERIALSBASIS)
PURCHASES
FULLPROGRAM 8STATE(WDEQ)FTE STATEFTECOST:$1,230,000
OPERATION 1STATEATTORNEY

YEAR6(EFFECTIVEUPON GENERALFTE
CONTRACTORCOSTSATSTATE
TRANSITION) 11LICENSEESACTIVEOR 1ADMINISTRATIVE
STANDBY ASSISTANTS DISCRETION
1LICENSEEAWAITING

146

SITECLOSUREAND
LICENSETERMINATION

147

149