[Federal Register Volume 79, Number 174 (Tuesday, September 9, 2014)]
[Notices]
[Pages 53464-53466]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-21413]
-----------------------------------------------------------------------
NUCLEAR REGULATORY COMMISSION
[Docket No. 04009067; NRC-2014-0020]
Uranerz Energy Corporation
AGENCY: Nuclear Regulatory Commission.
ACTION: Temporary exemption; issuance.
-----------------------------------------------------------------------
SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is issuing a
temporary exemption from certain NRC financial assurance requirements
to Uranerz Energy Corporation, (Uranerz) in response to its annual
financial assurance update for the Nichols Ranch in-situ recovery (ISR)
Project. Issuance of this temporary exemption will not remove the
requirement for Uranerz to provide adequate financial assurance through
an approved mechanism, but will allow the NRC staff to further evaluate
whether the State of Wyoming's separate account provision for financial
assurance instruments it holds is consistent with the NRC's requirement
for a standby trust agreement.
ADDRESSES: Please refer to Docket ID NRC-2014-0020 when contacting the
NRC about the availability of information regarding this document. You
may access publicly-available information related to this document
using any of the following methods:
Federal Rulemaking Web site: Go to http://www.regulations.gov and search for Docket ID NRC-2014-0020. Address
questions about NRC dockets to Carol Gallagher; telephone: 301-287-
3422; email: [email protected]. For technical questions, contact
the individual listed in the FOR FURTHER INFORMATION CONTACT section of
this document.
NRC's Agencywide Documents Access and Management System
(ADAMS): You may access publicly available documents online in the
ADAMS Public Documents collection at http://www.nrc.gov/reading-rm/adams.html. To begin the search, select ``ADAMS Public Documents'' and
then select ``Begin Web-based ADAMS Search.'' For problems with ADAMS,
please contact the NRC's Public Document Room (PDR) reference staff at
1-800-397-4209, 301-415-4737, or by email to [email protected]. The
ADAMS accession number for each document referenced in this document
(if that document is available in ADAMS) is provided the first time
that a document is referenced.
[[Page 53465]]
NRC's PDR: You may examine and purchase copies of public
documents at the NRC's PDR, Room O1-F21, One White Flint North, 11555
Rockville Pike, Rockville, Maryland 20852.
FOR FURTHER INFORMATION CONTACT: Ron C. Linton, Office of Federal and
State Materials and Environmental Management Programs; U.S. Nuclear
Regulatory Commission, Washington DC 20555-0001; telephone: 301-415-
7777; email: [email protected].
I. Background
Criterion 9 of part 40 of Title10 of the Code of Federal
Regulations (10 CFR), appendix A, and NRC materials license SUA-1597,
License Condition 9.5, require Uranerz to submit to the NRC for review
and approval, an annual update of the financial surety to cover third-
party costs for decommissioning and decontamination for the Nichols
Ranch ISR Project. The Nichols Ranch ISR Project is located in Johnson
and Campbell Counties, Wyoming. Uranerz submitted to the NRC its annual
surety update for 2013-2014 in submissions dated December 9, 2013, and
January 31, 2014 (ADAMS Accession Nos. ML13353A634 and ML14041A337
respectively). The NRC's staff reviewed the annual financial surety
updates and found the values reasonable for the required reclamation
activities (ADAMS Accession No. ML14203A358). Uranerz maintains an
approved financial assurance instrument in favor of the State of
Wyoming; however, it does not have a standby trust agreement (STA) in
place, as required by 10 CFR part 40, appendix A, Criterion 9.
II. Description of Action
As of December 17, 2012, the NRC's uranium milling licensees, which
are regulated, in part, under 10 CFR part 40, appendix A, Criterion 9,
are required to have an STA in place. Criterion 9 provides that if a
licensee does not use a trust as its financial assurance mechanism,
then the licensee is required to establish a standby trust fund to
receive funds in the event the Commission or State regulatory Agency
exercises its right to collect the funds provided for by surety or
letter of credit. The purpose of an STA is to provide a separate
account to hold decommissioning funds in the event of a default.
Consistent with the provisions of 10 CFR part 40, appendix A, Criterion
9(d), Uranerz has consolidated its NRC financial assurance sureties
with those it is required to obtain by the State of Wyoming, and the
financial instrument is held by the State of Wyoming. Uranerz has not
established an STA, nor has it requested an exemption from the
requirement to do so.
Wyoming law requires that a separate account be set up to receive
forfeited decommissioning funds, but does not specifically require an
STA. Section 35-11-424(a) of the Code of Wyoming states that ``[a]ll
forfeitures collected under the provisions of this act shall be
deposited with the State treasurer in a separate account for
reclamation purposes.'' Under Wyoming Department of Environmental
Quality (WDEQ) financial assurance requirements, WDEQ holds permit
bonds in a fiduciary fund called an agency fund. If a bond is
forfeited, the forfeited funds are moved to a special revenue account.
Although the Wyoming special revenue account is not an STA, the special
revenue account serves a similar purpose in that forfeited funds are
not deposited into the State treasury for general fund use, but instead
are set aside in the special revenue account to be used exclusively for
reclamation (i.e., decommissioning) purposes.
The NRC has the discretion, under 10 CFR 40.14(a), to grant an
exemption from the requirements of a regulation in 10 CFR part 40 on
its own initiative, if the NRC determines the exemption is authorized
by law and will not endanger life or property or the common defense and
security and is otherwise in the public interest. The NRC has elected
to grant Uranerz an exemption to the STA requirements in 10 CFR part
40, appendix A, Criterion 9, until December 31, 2016, to allow the NRC
to evaluate whether the State of Wyoming's separate account
requirements for financial assurance instruments it holds is consistent
with the NRC's STA requirements.
III. Discussion
A. Exemption Is Authorized by Law
The NRC staff concludes that the exemption is authorized by law as
10 CFR 40.14(a) expressly allows for an exemption to the requirements
of the regulation in 10 CFR part 40, appendix A, Criterion 9, and the
exemption is not contrary to any provision of the Atomic Energy Act of
1954, as amended.
B. The Exemption Presents No Undue Risk to Public Health and Safety
The exemption is related to the financial surety. The requirement
that Uranerz provide adequate financial assurance through an approved
mechanism (e.g., a surety bond, irrevocable letter of credit) remains
unaffected by the exemption. Rather, the exemption only pertains to the
establishment of a dedicated trust in which funds could be deposited in
the event that the financial assurance mechanism would need to be
liquidated. The regulations in 10 CFR part 40, appendix A, Criterion
9(d), allow for the financial or surety arrangements to be consolidated
within a State's similar financial assurance instrument. The NRC has
determined that while the WDEQ does not require an STA, the special
revenue account may serve a similar purpose in that forfeited funds are
not deposited into the State treasury for general fund use, but instead
are set aside in the special revenue account to be used exclusively for
site-specific reclamation (decommissioning) purposes. Because Uranerz
remains obligated to establish an adequate financial assurance
mechanism for its licensed sites, the NRC has approved such a
mechanism, and the NRC has determined that sufficient funds are
available in the event that the site needs to be decommissioned. A
temporary delay in establishing an STA does not impact the present
availability and adequacy of the actual financial assurance mechanism.
Therefore, the temporary exemption being issued by the NRC herein
presents no undue risk to public health and safety.
C. The Exemption Is Consistent With the Common Defense and Security
The exemption does not involve or implicate the common defense or
security. Therefore, the exemption has no effect on the common defense
and security.
D. The Exemption Is in the Public Interest
The exemption will enable the NRC staff to further evaluate whether
the State of Wyoming's separate account provision for financial
assurance instruments it holds is consistent with the NRC's requirement
for a standby trust agreement. The evaluation will allow the NRC to
determine whether Uranerz's compliance with the state law provision
will sufficiently address the NRC's requirement as well, and therefore
provide clarity on the implementation of the NRC's regulation in this
instance. Therefore, granting the exemption is in the public interest.
E. Environmental Considerations
The NRC staff has determined that granting of an exemption from the
requirements of 10 CFR part 40, appendix A, Criterion 9 belongs to a
category of regulatory actions that the NRC, by regulation, has
determined do not individually or cumulatively have a significant
effect on the environment,
[[Page 53466]]
and as such do not require an environmental assessment. The exemption
from the requirement to have an STA in place is eligible for
categorical exclusion under 10 CFR 51.22(c)(25)(vi)(H), which provides
that exemptions from surety, insurance, or indemnification requirements
are categorically excluded if the exemption would not result in any
significant hazards consideration; change or increase in the amount of
any offsite effluents; increase in individual or cumulative public or
occupational radiation exposure; construction impacts; or increase in
the potential for or consequence from radiological accidents. The staff
finds that the STA exemption involves surety, insurance and/or
indemnity requirements and that granting Uranerz this temporary
exemption from the requirement of establishing a STA would not result
in any significant hazards or increases in offsite effluents, radiation
exposure, construction impacts, or potential radiological accidents.
Therefore, an environmental assessment is not required.
IV. Conclusions
Accordingly, the NRC has determined that, pursuant to 10 CFR
40.14(a), the temporary exemption is authorized by law, will not
present an undue risk to the public health and safety, is consistent
with the common defense and security, and is in the public interest.
Therefore, the NRC hereby grants Uranerz a temporary exemption from the
requirement in 10 CFR part 40, appendix A, Criterion 9, to set up an
STA to receive funds in the event the NRC or the State regulatory
agency exercises is right to collect the surety. This exemption will
expire on December 31, 2016. At that time, Uranerz will be required to
ensure that its financial assurance arrangement is in compliance with
the NRC's STA requirements.
Dated at Rockville, Maryland, this 28th day of August 2014.
For the Nuclear Regulatory Commission.
Andrew Persinko,
Deputy Director, Decommissioning and Uranium Recovery Licensing
Directorate, Division of Waste Management and Environmental Protection,
Office of Federal and State Materials and Environmental Management
Programs.
[FR Doc. 2014-21413 Filed 9-8-14; 8:45 am]
BILLING CODE 7590-01-P