[Federal Register Volume 64, Number 51 (Wednesday, March 17, 1999)]
[Notices]
[Pages 13239-13241]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-6454]


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NUCLEAR REGULATORY COMMISSION

[Docket No. 40-2259]


Pathfinder Mines Corporation

AGENCY: U.S. Nuclear Regulatory Commission.

ACTION: Final finding of no significant impact notice of opportunity 
for hearing.

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SUMMARY: Notice is hereby given that the U.S. Nuclear Regulatory 
Commission (NRC) proposes to amend NRC Source Material License SUA-672, 
approving Pathfinder Mines Corporation's (PMC's ``no action'' proposal 
on cleanup of Reid Draw located downgradient of the Lucky Mc tailings 
system at Gas Hills, Wyoming. This license currently authorizes PMC to 
possess byproduct material in the form of uranium waste tailings 
generated by the licensee's milling operations at the site. In 
accordance with the requirements of 10 CFR Part 51, an Environmental 
Assessment (EA) was performed by the NRC staff in support of its review 
of PMC's Environmental Report (ER) on the status of Reid Draw. The 
conclusion of the Environmental Assessment is a Finding of No 
Significant Impact (FONSI) of ``no action'' proposal on cleanup of Reid 
Draw.

SUPPLEMENTARY INFORMATION:

Background

    By its letter dated August 28, 1998, PMC submitted an ER on the 
status of radiological contamination of Reid Draw. The draw is 
downgradient of the Lucky Mc tailings system at Gas Hills, Wyoming. PMC 
presented three action alternatives in the ER, and requested the NRC 
concurrence on its proposed ``no action'' alternative.
    Reid Draw developed as a result of surface water erosion in the 
general area of the current Lucky Mc uranium mill site and portions of 
the uranium mine site that lie further to the south. Upon developing 
the mill, the mill tailings management structures were built at the 
head of Reid Draw. In the early days of mill operation, there was only 
one embankment, the No. 1 solid tailings dam. It served as the sole 
tailings storage facility from the inception of milling in 1958 until 
1960 when the No. 2 dam was constructed. A review of early company 
records indicates that excess tailings solution was routinely 
discharged down Reid Draw from the No. 1 dam until June 1, 1960, when 
the No. 2 dam was commissioned. Apparently, this discharge was 
considered acceptable and normal practice in those days since the site 
was subject to Atomic Energy Commission inspections during the 
timeframe of interest. The furthest down-gradient embankment in the 
tailings system, the No. 4 dam was constructed in 1961.
    Reid Draw is subject to only intermittent flows. However, a period 
of unusually rainy weather in June 1963 culminated with a protracted 
storm on June 15. The No. 4 solution pond capacity had been taxed due 
to the earlier precipitation, and the three inches of rain on June 15 
proved too much for the system. Out of concern for the integrity of the 
No. 4 dam in the imminent event of an uncontrolled overtopping, the 
decision was made to cut a relief overflow, allowing some of the 
impounded water to escape. The licensee documentation at the time 
indicates that an estimated 23 million gallons of water were released. 
It should

[[Page 13240]]

be noted that this released water was significantly diluted due to the 
precipitation runoff.
    The early releases and the single No. 4 dam breach event account at 
least in part for the levels of radionuclides found in Reid Draw at the 
present time. It is also likely that there is a natural contribution to 
the radionuclide levels in Reid Draw due to the fact that Reid Draw 
heads at the outcrop of a naturally mineralized area. It is reasonable 
to hypothesize that the erosion forces that created Reid Draw over time 
carried some of this mineralization down the draw. Since the controlled 
release during June 1963, there have been no other releases of tailings 
solutions to Reid Draw.
    The No. 4 dam underwent a major reconstruction during 1980-1981 
that entailed excavation down to competent Cody Shale in order to key 
the dam into impermeable material, and the overall size of the dam was 
expanded greatly. There is no evidence of ground-water impacts from 
seepage through the reconstructed dam, based upon the monitoring data 
from the piezometers, and the monitoring of water quality in the 
immediately down-gradient point of compliance well R-2 located in Reid 
Draw.
    The Reid Draw gamma surveys conducted down-gradient from tailings 
dam No. 4 and beyond Reid Reservoir, located on the draw owned by Philp 
Sheep Company, indicate that the measurable contamination terminates 
just above Reid Reservoir. Reid Reservoir is some 3,000 meters (1.9 
miles) down the draw from the toe of No. 4 dam. The reservoir existed 
prior to any up-gradient milling activity.
    Additionally, radionuclide analysis of surface water and a sample 
of water taken from Reid Reservoir indicate that the concentrations are 
well within the NRC effluent water concentration limits for 
radionuclides, as specified in 10 CFR Part 20, Appendix B, Table 2. 
Cleanup criteria for off-pile areas of uranium mill sites are specified 
in 10 CFR Part 40, Appendix A, Technical Criteria.

Summary of the Environmental Assessment

    In accordance with 10 CFR Part 51, Licensing and Regulatory Policy 
Procedures for Environmental Protection, the NRC staff performed an 
appraisal of the environmental impacts associated with the ``no 
action'' proposal on cleanup of Reid Draw. In conducting its appraisal, 
the NRC staff considered the following information: (1) PMC's ER on 
remediation of Reid Draw, and its subsequent submittal providing 
additional information and revised pages to the ER; (2) results of NRC 
staff site visits and inspections of the facility; and (3) consultation 
with the Wyoming Department of Environmental Quality, Bureau of Land 
Management, and Philp Sheep Company. The technical aspects of the 
proposal will be discussed separately in a Technical Evaluation Report 
(TER) that will accompany the final agency licensing action.
    The results of the staff's appraisal are documented in an EA placed 
in the docket file. Based on its review, the NRC staff has concluded 
that there are no significant environmental impacts associated with the 
``no action'' proposal.

Conclusions

    The NRC staff has examined actual and potential impacts associated 
with PMC's ``no action'' proposal on cleanup of Reid Draw, and has 
determined that authorizing implementation of the ``no action'' 
proposal will not have long-term detrimental impacts on the 
environment. The following statements summarize the conclusions 
resulting from the staff's environmental assessment, and support the 
FONSI:

    (1) Present and potential risks were assessed. The NRC staff 
determined that the risk factors for health and environmental 
hazards are insignificant in the licensee proposed ``no action'' 
alternative; and
    (2) Remediation would cause irreversible damage to the current, 
very stable, environment of Reid Draw.

    Because the staff has determined that there will be no significant 
impacts associated with approval of the ``no action'' proposal, there 
can be no disproportionally high and adverse effects or impacts on 
minority and low-income populations. Consequently, further evaluation 
of Environmental Justice concerns, as outlined in Executive Order 12898 
and NRC's Office of Nuclear Material Safety and Safeguards Policy and 
Procedures Letter 1-50, Revision 1, is not warranted.

Alternatives to the Proposed Action

    The proposed action is to amend NRC Source Material License SUA-672 
authorizing PMC to implement ``no action'' proposal on cleanup of Reid 
Draw, as requested by PMC. Therefore, the principal alternatives 
available to NRC are to:

    (1) Approve the licensee's ``no action'' alternative, as 
proposed; or (2) Amend the license with such additional conditions 
as are considered necessary or appropriate to protect public health 
and safety and the environment; or (3) Deny the licensee's request.

    Based on its review, the NRC staff has concluded that the 
environmental impacts associated with the ``no action'' proposal on 
cleanup of Reid Draw do not warrant either the limiting of PMC's future 
operations or the denial of the licensee's request. Additionally, in 
the TER for this action, the staff will document its evaluation of the 
licensee's proposal with respect to the criteria for cleanup of off-
pile areas of uranium mill sites as specified in 10 CFR Part 40, 
Appendix A. Therefore, the staff considers that Alternative 1 is the 
appropriate alternative for selection.

Finding of No Significant Impact

    The NRC staff has prepared an EA for the ``no action'' proposal on 
cleanup of Reid Draw. On the basis of this assessment, the NRC staff 
has concluded that the environmental impacts that may result from the 
``no action'' proposal would not be significant and, therefore, 
preparation of an Environmental Impact Statement is not warranted.
    The EA and other related documents are available for public 
inspection and copying at the NRC Public Document Room, in the Gelman 
Building, 2120 L Street NW, Washington, DC 20555.

Notice of Opportunity for Hearing

    The NRC hereby provides notice that this is a proceeding on an 
application for a licensing action falling within the scope of Subpart 
L, ``Informal Hearing Procedures for Adjudications in Materials and 
Operators Licensing Proceedings,'' of the Commission's Rules of 
Practice for Domestic Licensing Proceedings and Issuance of Orders in 
10 CFR Part 2 (54 FR 8269). Pursuant to Sec. 2.1205(a), any person 
whose interest may be affected by this proceeding may file a request 
for a hearing. In accordance with Sec. 2.1205(c), a request for a 
hearing must be filed within thirty (30) days from the date of 
publication of this Federal Register notice. The request for a hearing 
must be filed with the Office of the Secretary either:
    (1) By delivery to the Rulemakings and Adjudications Staff of the 
Office of the Secretary at One White Flint North, 11555 Rockville Pike, 
Rockville, MD 20852; or
    (2) By mail or telegram addressed to the Secretary, U.S. Nuclear 
Regulatory Commission, Washington, DC 20555, Attention: Rulemakings and 
Adjudications Staff.
    Each request for a hearing must also be served by delivering it 
personally or by mail to:
    (1) The applicant, Pathfinder Mines Corporation, 935 Pendell 
Boulevard, P.O. Box 730, Mills, Wyoming 82644, Attention: Tom 
Hardgrove; and

[[Page 13241]]

    (2) The NRC staff, by delivery to the Executive Director of 
Operations, One White Flint North, 11555 Rockville Pike, Rockville, MD 
20852, or by mail addressed to the Executive Director for Operations, 
U.S. Nuclear Regulatory Commission, Washington, DC 20555.
    In addition to meeting other applicable requirements of 10 CFR Part 
2 of the Commission's regulations, a request for a hearing filed by a 
person other than an applicant must describe in detail:
    (1) the interest of the requestor in the proceeding;
    (2) how that interest may be affected by the results of the 
proceeding, including the reasons why the requestor should be permitted 
a hearing, with particular reference to the factors set out in 
Sec. 2.1205(g);
    (3) the requestor's areas of concern about the licensing activity 
that is the subject matter of the proceeding; and
    (4) the circumstances establishing that the request for a hearing 
is timely in accordance with Sec. 2.1205(c).
    The request must also set forth the specific aspect or aspects of 
the subject matter of the proceeding as to which petitioner wishes a 
hearing.

FOR FURTHER INFORMATION CONTACT: Mohammad Haque, Uranium Recovery 
Branch, Division of Waste Management, Office of Nuclear Material Safety 
and Safeguards, U.S. Nuclear Regulatory Commission, Mail Stop T7-J8, 
Washington, D.C. 20555. Telephone 301/415-6640.

    Dated at Rockville, Maryland, this 11th day of March 1999.

    For the Nuclear Regulatory Commission.
N. King Stablein,
Acting Chief, Uranium Recovery Branch, Division of Waste Management, 
Office of Nuclear Material Safety and Safeguards.
[FR Doc. 99-6454 Filed 3-16-99; 8:45 am]
BILLING CODE 7590-01-P