[Federal Register Volume 65, Number 1 (Monday, January 3, 2000)]
[Notices]
[Pages 138-140]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-34053]
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NUCLEAR REGULATORY COMMISSION
[Docket No. 40-3453]
Moab Mill Reclamation Trust; Notice of Order and an Opportunity
for a Hearing
AGENCY: Nuclear Regulatory Commission.
ACTION: Notice of Order transferring License No. SUA-917 for the Moab,
Utah facility and site from Atlas Corporation to the Moab Mill
Reclamation Trust; notice of opportunity for a hearing.
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SUMMARY: Notice is hereby given that the U.S. Nuclear Regulatory
Commission (NRC) has signed an Order (copy attached) dated December 27,
1999, transferring Source Material License SUA-917 for the Moab, Utah,
facility and site from Atlas Corporation (Atlas) to the Moab Mill
Reclamation Trust (Trust). On September 22, 1998, Atlas filed a
petition for relief under Chapter 11 of the U.S. Bankruptcy Code. After
filing for relief, Atlas entered into settlement discussions with NRC,
the State of Utah, and other parties to the bankruptcy proceeding
regarding the reclamation and disposition of the Moab Mill Site. Those
discussions resulted in the development of the Moab Uranium Millsite
Transfer Agreement (Settlement Agreement) which provides for transfer
of the Moab Mill Site and the NRC license to a trust, the trustee of
which would carry out remediation of the site pursuant to the terms and
conditions of NRC License SUA-917, as amended on June 24, 1999. The
terms and conditions of NRC License SUA-917 include the reasonable and
prudent alternatives (RPAs) and reasonable and prudent measures (RPMs)
in the U.S. Fish and Wildlife Service's final biological opinion (FBO)
dated July 29, 1998 (included in the NRC's ``Final Environmental Impact
Statement Related to Reclamation of the Uranium Mill Tailings at the
Atlas Site, Moab, Utah,'' (FEIS) NUREG-1531, published in March 1999),
as well as mitigative measures developed by the NRC staff. The
Settlement Agreement was submitted to the United States Bankruptcy
Court for the District of Colorado for approval on April 29, 1999. On
December 1, 1999, the Court issued an Order confirming the second
amended plan of reorganization of the Atlas Corporation, which includes
the Settlement Agreement.
FOR FURTHER INFORMATION CONTACT: Myron Fliegel, Office of Nuclear
Material Safety and Safeguards, Washington, DC 20555-0001, telephone
(301) 415-6629, e-mail mhf1@nrc.gov.
Dated at Rockville, Maryland, this 27th day of December 1999.
For the Nuclear Regulatory Commission.
Michael C. Layton,
Acting Chief, Uranium Recovery and Low-Level Waste Branch, Division of
Waste Management, Office of Nuclear Material Safety and Safeguards.
Order Transferring License No. SUA-917 for The Moab Mill Site
I.
Atlas Corporation (Atlas) is the holder of License No. SUA-917,
which authorized the milling of uranium ore at Atlas' Moab Mill Site
located in Moab, Utah. In accordance with Amendment No. 31 of the
license, the license will not expire until the NRC terminates it.
II.
Atlas acquired the Moab Mill Site in 1962 from the Uranium
Reduction Company (URC) which built milling facilities and began
operations at the site in October 1956. The site is located in Grand
County, Utah, on the northwest shore of the Colorado River, 5 km (3
miles) from the center of Moab, and can be accessed from U.S. Highway
191 north of Moab. The site encompasses 162 hectares (400 acres) on the
outside bend of the Colorado River, at the southern terminus of the
Moab Canyon. The site is surrounded on the north and west sides by high
sandstone cliffs; to the north and east is Moab Wash; to the east and
south is the flood plain of the Colorado River; and, across the river,
is Moab Marsh. The site generally slopes toward the Colorado River and
Moab Wash. The uranium tailings from the Moab milling operations occupy
about 53 hectares (130 acres) of land about 230 m (750 ft) from the
Colorado River. Mill operations ceased in 1984. Decommissioning of the
mill began in 1988. Construction of an interim cover for placement over
the tailing disposal area began in 1989 and was completed in 1995.
III.
On September 22, 1998, Atlas filed a petition for relief under
Chapter 11 of the U.S. Bankruptcy Code and since that date has been
operating as a Debtor in Possession. After filing for relief, Atlas
entered into settlement discussions with the U.S. Nuclear Regulatory
Commission (NRC), the State of Utah, and other parties to the
bankruptcy proceeding regarding the reclamation and disposition of the
Moab Mill Site. Those discussions resulted in the development of the
Moab Uranium Millsite Transfer Agreement (Settlement Agreement) which
provides for transfer of the Moab Mill Site and the NRC license to a
trust, the trustee of which would carry out remediation of the site
pursuant to the terms and conditions of NRC License SUA-917, as amended
on June 24, 1999. The terms and conditions of NRC License SUA-917
include the reasonable and prudent alternatives (RPAs) and reasonable
and prudent measures (RPMs) in the U.S. Fish and Wildlife Service's
final biological opinion (FBO) dated July 29, 1998 (included in the
NRC's ``Final Environmental Impact Statement Related to Reclamation of
the Uranium Mill Tailings at the Atlas Site, Moab,
[[Page 139]]
Utah,'' (FEIS) NUREG-1531, published in March 1999), as well as
mitigative measures developed by the NRC staff.
The NRC, which had filed claims in bankruptcy against Atlas
totaling about $44 million, entered into the Settlement Agreement
described in the preceding paragraph rather than involve the NRC in a
protracted legal dispute over the limited funds that would be available
for site remediation from the liquidation of the Atlas Corporation. The
NRC believes that measures taken pursuant to the Settlement Agreement
will permit remediation of the Moab Mill Site to proceed in a more
timely manner and will maximize the amount of private funding available
for remediation of the Moab Mill Site. The Settlement Agreement was
submitted to the United States Bankruptcy Court for the District of
Colorado for approval on April 29, 1999. On December 1, 1999, the Court
issued an Order confirming the second amended plan of reorganization of
the Atlas Corporation, which includes the Settlement Agreement.
Consistent with the terms of the Settlement Agreement, the NRC and
the State of Utah undertook to identify a Trustee to administer the
Moab Mill Reclamation Trust (Trust). PricewaterhouseCoopers LLP
(Trustee) has agreed to undertake remediation of the Moab Mill Site,
pursuant to 10 CFR Part 40 under License SUA-917 and in accordance with
the Trust established for such purposes. The NRC has agreed to accept
the Settlement Agreement in satisfaction of Atlas' regulatory
responsibilities under 10 CFR Part 40 for remediation of the Moab Mill
Site, to transfer License SUA-917 to the Trust, and to limit the
Trustee's liability for remediation and maintenance of the site to the
amount of funding available to the Trust from Atlas' assets,
receivables and future receivables transferred to the Trust under the
Settlement Agreement, and any other assets which may become available
to the Trust. The NRC is aware that because of the time involved in
concluding the bankruptcy proceeding, some dates in the license
conditions have already passed while others are imminent and therefore,
might be impractical for the Trustee to meet. These dates will be
considered in future actions.
Current assets and receivables include the following:
(1) $5.25 million in cash from Atlas/ACSTAR (the entity which holds
the reclamation bond issued for the benefit of the NRC to be used for
reclamation of the Moab Mill Site.
This entity has agreed to transfer the sum to the Trust in full and
complete satisfaction of its obligations under Bond #5652);
(2) The assignment of funds from the Department of Energy pursuant
to the Energy Policy Act of 1992 (Pub. L. 102-486, Title X, Section
1001, Oct. 24, 1992, 106 Stat. 2946, codified at 42 U.S.C. 2296(a)),
[hereinafter ``Title X funds''] for past claims. This amount is
estimated to be approximately $1,082,000;
(3) Fifty (50) percent of any net recovery from collection of the
disputed Title X claim for dismantling performed by American
Reclamation and Dismantling Inc. (ARD claim);
(4) Any and all of Atlas' rights as a licensee to future Title X
funds;
(5) Atlas' water rights located at the Moab Land, listed as 6.3
cubic feet per second (cfs) from the Colorado River, Grand County,
Utah, Water Right Number 01-40, Application 30032, Certificate No.
60111;
(6) Atlas' possible Water Rights in the following:
A. Water Right Number 01-1121 for 31 acre-feet, a segregation
application from Water Right Number 01-40;
B. Water Right Number 09-199 for 3.33 cfs in the San Juan River;
C. Water Right Number 05-982 for .015 cfs for a well in the
Monticello Mining District;
D. Water Right Number 99-32 for .004 cfs from Seep Springs
(approximately 4 miles from Fry Canyon);
(7) Atlas' interest in the certain real property owned by Atlas and
consisting of approximately 430 acres, located in Grand County, Utah,
together with all buildings, structures, improvements, appurtenances,
fixtures, and easements; and
(8) Two and a half (2.5) percent of the stock in a reorganized
Atlas Corporation which would be issued to the Reclamation Trust.
The land and water rights, herein described, have stand-alone value
and may be sold by the Trustee independent of, and prior to or during,
any reclamation work being performed at the site by the Trustee. As to
items 5, 6, and 7 above, Atlas will transfer all said assets to the
Trust by way of quit claim deed or similar document, without
representations, warranties, or indemnification rights of any kind.
IV.
Remediation of the Moab Mill Site is to be conducted in accordance
with the terms and conditions of License SUA-917. These include the
RPAs and RPMs in the U.S. Fish and Wildlife Service's FBO, dated July
29, 1998. The Trustee has agreed to these terms and conditions. The
NRC, as the lead Federal Agency regarding the consultation required
under Section 7 of the Endangered Species Act of 1973 (16 U.S.C. 1531
et seq.), has included these RPAs and RPMs in the NRC's NUREG-1531
published in March 1999.
The Trustee's maintenance of the site and administration of the
remediation of the site in accordance with the terms of license SUA-917
and the terms of this Order, will provide adequate protection of the
public health and safety and reasonable assurance of compliance with
the Commission's regulations.
Pursuant to the terms of the Settlement Agreement described in the
preceding sections of this Order, the NRC, with concurrence from the
State of Utah, selected PricewaterhouseCoopers LLP as Trustee.
PricewaterhouseCoopers LLP is qualified to perform the duties
enumerated in this Order.
In view of the foregoing, I have authorized the transfer of License
SUA-917 which will be amended to reflect the change in the named
licensee. The Trustee accedes to this Order voluntarily, and has agreed
to take the necessary steps to undertake remediation of the site to the
extent permitted by the funds available to the Trust, according to the
requirements in Part V of this Order.
V.
Accordingly, pursuant to Sections 62, 63, 81, 84, 161b, 161i, 161o
and 184 of the Atomic Energy Act of 1954, as amended (42 U.S.C. 2011 et
seq.), and the Commission's regulations in 10 CFR Part 40, it is hereby
ordered That, effective December 30, 1999, License SUA-917 is
transferred to the Trust and the Trustee is authorized to possess
byproduct material in the form of uranium waste tailings and other
uranium waste generated by Atlas' milling operations at the Moab Mill
Site pursuant to the terms and conditions of License SUA-917. It is
further ordered that:
A. The Trustee shall:
1. Perform remediation of the site pursuant to the terms and
conditions of NRC License SUA-917.
2. Notify and request relief from the Chief, Uranium Recovery and
Low-Level Waste Branch, Division of Waste Management, Office of Nuclear
Material Safety and Safeguards, NRC, Washington, DC 20555-0001, if the
Trustee believes it should be relieved of any requirements in the
license because the Trustee believes that these requirements are
impracticable given the parameters of the Trust Agreement or that they
have either been satisfactorily completed or are unnecessary. The
Trustee will continue
[[Page 140]]
to comply with all requirements in this license pending NRC action on
the Trustee's request for relief from specified requirements under this
subsection.
3. Cooperate with the NRC (or its contractor) in NRC's site
inspections.
4. Cooperate with the U.S. Department of Energy (DOE) in matters
relating to the transfer of the site to DOE, including preparation by
DOE of the site Long-Term Surveillance Plan required by 10 C.F.R.
40.28.
5. Use reasonable efforts to secure all Title X funds from the
Department of Energy pursuant to section 1001 of the Energy Policy Act
of 1992 (42 U.S.C. 13201 et seq.) to which it is legally entitled,
including requests for additional Title X funds from DOE based on
remediation work at the site performed by or on behalf of the Trust.
6. Notify the Director, Office of Nuclear Material Safety and
Safeguards, NRC, Washington, DC 20555-0001, and the Regional
Administrator, NRC Region IV, NRC Region IV, 611 Ryan Plaza Drive,
Suite 400, Arlington, TX 76011-8064, by certified registered mail, no
later than 180 days prior to the anticipated date, that all contractual
and other projected obligations will have reasonably exhausted the
Trust Fund.
7. Upon notification required by paragraph 6 of this Part, cease
remediation work as set forth in this Order, and commence passive
maintenance and monitoring only of the site in order to provide for the
protection of the public health and safety using the remaining assets
in the Reclamation Trust to fund monitoring and maintenance until
further order of the NRC.
B. Upon completion of the NRC inspection to determine that the site
has been remediated in conformance with the requirements in 10 C.F.R.
Part 40 and the conditions set forth in the license to the extent
practicable given the funding available to the Trustee, title to the
real property and the remaining byproduct material at the Moab Mill
Site will be transferred in accordance with section 83 of the Atomic
Energy Act of 1954, as amended, and the Commission's regulations, and
this license shall be modified or terminated accordingly.
C. Notwithstanding any of the foregoing requirements, the NRC shall
not require the Trustee to perform or pay for any reclamation,
remediation, monitoring, or surveillance, the cost of which would
exceed the amount of money available to the Trustee from the Trust
assets and receivables. The Trustee's responsibilities, liabilities and
authority under this license shall terminate upon further order of the
NRC.
D. The requirements identified in this Order may only be modified
in writing by the Director, Office of Nuclear Material Safety and
Safeguards.
VI.
Any person adversely affected by this Order, other than Atlas or
the Trustee, may request a hearing within 20 days of its issuance. Any
request for a hearing shall be submitted to the Secretary, U.S. Nuclear
Regulatory Commission, Washington, D.C. 20555-0001. Copies of any
hearing requests also shall be sent to the Director, Office of Nuclear
Material Safety and Safeguards, U.S. Nuclear Regulatory Commission,
Washington, D.C. 20555-0001; to the Assistant General Counsel for
Materials Litigation and Enforcement, at the same address; to the
Regional Administrator, NRC Region IV, 611 Ryan Plaza Drive, Suite 400,
Arlington, TX 76011-8064 and to the Trustee, PricewaterhouseCoopers
LLP, Attention: Mr. Keith E. Eastin, Director, 1201 Louisiana, Suite
2900, Houston, TX 77002-5678. If a hearing is requested, the requester
shall set forth with particularity the manner in which his or her
interest is adversely affected by this Order and shall address the
criteria set forth in 10 C.F.R. 2.1306 and 2.1308.
If a hearing is requested by a person whose interest is adversely
affected by this Order, the Commission will consider the hearing
request pursuant to 10 C.F.R. Part 2, Subpart M, and will issue an
Order designating the time and place of any hearing. If a hearing is
held, the procedures of Subpart M will be applied as provided by the
Order designating the time and place of the hearing. The issue to be
considered at such hearing shall be whether this Order transferring the
license should be sustained. Any request for a hearing shall not stay
the effectiveness of this Order.
Dated at Rockville, Maryland, this 27th day of December 1999.
For the Nuclear Regulatory Commission.
William F. Kane,
Director, Office of Nuclear Material Safety and Safeguards.
[FR Doc. 99-34053 Filed 12-30-99; 8:45 am]
BILLING CODE 7590-01-P
