License Transfer Order for the Cimarron Facility at Crescent, OK, 10918-10923 [2011-4348]

Agencies

• NUCLEAR REGULATORY COMMISSION

[Federal Register Volume 76, Number 39 (Monday, February 28, 2011)]
[Notices]
[Pages 10918-10923]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-4348]


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NUCLEAR REGULATORY COMMISSION

[Docket No. 070-0925; NRC-2011-0042]


License Transfer Order for the Cimarron Facility at Crescent, OK

AGENCY: U.S. Nuclear Regulatory Commission.

ACTION: Notice of transfer of License SNM-928 from Cimarron Corporation 
to the Cimarron Environmental Response Trust.

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DATES: Requests for a hearing or leave to intervene must be filed by 
March 21, 2011.

ADDRESSES: You may submit comments by any one of the following methods. 
Please include Docket ID NRC-2011-0042 in the subject line of your 
comments. Comments submitted in writing or in electronic form will be 
posted on the NRC Web site and on the Federal rulemaking Web site 
Regulations.gov. Because your comments will not be edited to remove any 
identifying or contact information, the NRC cautions you against 
including any information in your submission that you do not want to be 
publicly disclosed.
    The NRC requests that any party soliciting or aggregating comments 
received from other persons for submission to the NRC inform those 
persons that the NRC will not edit their comments to remove any 
identifying or contact information, and therefore, they should not 
include any information in their comments that they do not want 
publicly disclosed. Federal rulemaking Web site: Go to https://www.regulations.gov and search for documents filed under Docket ID NRC-
2011-0042. Address questions about NRC dockets to Carol Gallagher 301-
492-3668; e-mail Carol.Gallagher@nrc.gov.
    Mail comments to: Cindy Bladey, Chief, Rules, Announcements, and 
Directives Branch (RADB), Office of Administration, Mail Stop: TWB-05-
B01M, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001, or 
by fax to RADB at 301-492-3446.
    You can access publicly available documents related to this notice 
using the following methods:
    NRC's Public Document Room (PDR): The public may examine, and have 
copied for fee, publicly available documents at the NRC's PDR, Room O1 
F21, One White Flint North, 11555 Rockville Pike, Rockville, Maryland 
20852.
    NRC's Agencywide Documents Access and Management System (ADAMS): 
Publicly available documents created or received at the NRC are 
available electronically at the NRC's Electronic Reading Room at https://www.nrc.gov/reading-rm/adams.html. From this page, the public can gain 
entry into ADAMS, which provides text and image files of NRC's public 
documents. If you do not have access to ADAMS or if there are problems 
in accessing the documents located in ADAMS, contact the NRC's PDR 
reference staff at 1-800-397-4209, 301-415-4737, or by e-mail to 
pdr.resource@nrc.gov. The Transfer Order is provided at the end of this 
notice and is available electronically under ADAMS Accession Number 
ML110280485.
    Federal rulemaking Web site: Public comments and supporting 
materials related to this notice can be found at https://www.regulations.gov by searching on Docket ID: NRC-2011-0042.

FOR FURTHER INFORMATION CONTACT: Ken Kalman, Project Manager, 
Decommissioning and Uranium Recovery Licensing Directorate, Division of 
Waste Management and Environmental Protection, Office of Federal and 
State Materials and Environmental Management Programs, U.S. Nuclear 
Regulatory Commission, Washington, DC 20555-0001; Telephone: 301-415-
6664; fax number 301-415-5369; e-mail: kenneth.kalman@nrc.gov.

SUPPLEMENTARY INFORMATION:

I. Introduction

    The NRC has signed an Order (copy included) dated February 14, 
2011, transferring Source Material License SNM-928 for the Cimarron 
Facility in Crescent, Oklahoma to the Cimarron Environmental Response 
Trust (Trust). The Trust will be administered by Environmental 
Properties Management, LLC.

II. Summary

    On January 12, 2009, Tronox Incorporated and 14 of its affiliates 
(collectively ``Debtors'') filed voluntary petitions for reorganization 
under Chapter 11, Title 11 of the United States Code, 11 U.S.C. 1101 et 
seq., as amended, in the United States Bankruptcy Court, Southern 
District of New York. Cimarron Corporation, a

[[Page 10919]]

wholly owned subsidiary of Tronox Incorporated, an NRC licensee, is a 
debtor in that case. On January 12, 2009, Debtors also informed the NRC 
by letter of the bankruptcy filing. By letter dated February 11, 2009, 
the NRC notified Cimarron Corporation of its continuing obligations 
under its NRC license to comply with NRC requirements. On January 26, 
2009, the NRC advised the United States Department of Justice (``DOJ'') 
of its interest in the bankruptcy proceeding and on June 22, 2009, at 
DOJ's request, the NRC submitted a Proof of Claim Referral.
    Subsequently, Debtors and DOJ, on behalf of and together with 
certain Federal and State entities including the NRC, entered into 
settlement discussions with regard to certain sites owned by Debtors 
including sites with known or potential environmental contamination 
that are the subject of clean-up obligations under Federal, Tribal, and 
State environmental laws. Those discussions resulted in the development 
of a global environmental settlement agreement (Settlement Agreement). 
On November 23, 2010, the proposed Settlement Agreement was filed with 
the Bankruptcy Court. On January 26, 2011, the Bankruptcy Court entered 
an Order approving the Settlement Agreement.
    The NRC, which had filed claims in bankruptcy against Cimarron 
Corporation, entered into the Settlement Agreement rather than involve 
the NRC in a protracted legal dispute over the limited funds that would 
be available for site remediation from Cimarron Corporation assets. The 
NRC believes that measures taken pursuant to the Settlement Agreement 
will permit remediation of the Cimarron Site to proceed in a timelier 
manner and will maximize the amount of funding available for the 
remediation of the Cimarron Site.
    The Settlement Agreement provides that on the date that the 
Settlement Agreement becomes effective (``Effective Date''), Debtors 
will transfer all of their right, title and interest related to the 
Cimarron Site to the Cimarron Environmental Response Trust (Cimarron 
Trust). In accordance with the Settlement Agreement, the purpose of the 
Cimarron Trust shall be to: (i) Act as successor to Debtors solely for 
the purpose of performing, managing, and funding implementation of all 
decommissioning and/or site control and maintenance activities pursuant 
to the terms and conditions of the Cimarron License and an NRC-approved 
decommissioning plan, and all environmental actions required under 
Federal or State law; (ii) own the Cimarron Site; (iii) carry out 
administrative functions related to the performance of work by or on 
behalf of the Cimarron Site; (iv) fulfill other obligations as set 
forth in the Settlement Agreement; (v) pay certain regulatory fees and 
oversight costs; and (vi) ultimately sell, transfer or otherwise 
dispose or facilitate the reuse of all or part of the Cimarron trust 
assets, if possible. In conjunction with the development of the 
Settlement Agreement, DOJ, the NRC, and the State of Oklahoma undertook 
to identify a Trustee to administer the Cimarron Trust. Environmental 
Properties Management, LLC, not individually but solely in its 
representative capacity as Cimarron Trustee, has been appointed as the 
Cimarron Trustee to administer the Cimarron Trust and the Cimarron 
Trust Accounts, in accordance with the Settlement Agreement and a 
Cimarron Environmental Response Trust Agreement (``Cimarron Trust 
Agreement'') materially consistent with the Settlement Agreement to be 
separately executed by the parties.
    The Settlement Agreement further provides that on or before the 
Effective Date, with the approval of the NRC and in accordance with the 
Atomic Energy Act of 1954, as amended (42 U.S.C. 2011 et seq.) and 
applicable regulations in 10 CFR part 70, the Radioactive Materials 
License SNM-928 held by Cimarron Corporation shall either be 
transferred to the Cimarron Trust; be transferred to Environmental 
Properties Management, LLC; or be transferred to a person or entity 
retained by the Cimarron Trustee and approved by NRC to hold the 
Cimarron License, pursuant to an Order Transferring License issued by 
the NRC.

III. NRC Review

    The NRC staff reviewed the settlement agreement and the Cimarron 
Trust Agreement and determined that the Trustee has agreed to take the 
necessary steps to undertake remediation of the site to the extent 
permitted by the funds available to the Trust in accordance with this 
order.
    Remediation of the Cimarron Site is to be conducted in accordance 
with the terms and conditions of License SNM-928, the Settlement 
Agreement, and the Cimarron Trust Agreement. The Trustee has agreed to 
these terms and conditions.
    The Trustee's maintenance of the site and administration of the 
site in accordance with License SNM-928, the terms of the Settlement 
Agreement, the Cimarron Trust Agreement, 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, DOJ in 
coordination with the NRC, and the State of Oklahoma, selected 
Environmental Properties Management, LLC, as Trustee. Environmental 
Properties Management, LLC, is qualified to perform the duties 
enumerated in this Order.

IV. Further Information

    Documents related to this action, including the application for 
amendment and supporting documentation, are available electronically at 
the NRC's Electronic Reading Room at https://www.nrc.gov/reading-rm/adams.html. From this site, you can access the NRC's Agency-wide 
Document Access and Management System (ADAMS), which provides text and 
image files of NRC's public documents. The ADAMS accession numbers for 
the documents related to this notice are: Settlement Agreement dated 
January 26, 2011, ML110320603; and the Environmental Response Trust 
Agreement dated February 14, 2011, ML110450212. If you do not have 
access to ADAMS or if there are problems in accessing the documents 
located in ADAMS, contact the NRC Public Document Room (PDR) Reference 
staff at 1-800-397-4209, 301-415-4737, or by e-mail to 
PDR.Resource@nrc.gov.

V. Opportunity To Request a Hearing

    Requirements for hearing requests and petitions for leave to 
intervene are found in 10 CFR 2.309, ``Hearing Requests, Petitions to 
Intervene, Requirements for Standing, and Contentions.'' Interested 
persons should consult 10 CFR part 2, Sec.  2.309, which is available 
at the NRC's Public Document Room (PDR), located at O1 F21, One White 
Flint North,11555 Rockville Pike, Rockville, MD 20852 (or call the PDR 
at 800-397-4209 or 301-415-4737). NRC regulations are also accessible 
electronically from the NRC's Electronic Reading Room on the NRC Web 
site at https://www.nrc.gov.

VI. Petitions for Leave To Intervene

    Any person whose interest may be affected by this proceeding and 
who wishes to participate as a party in the proceeding must file a 
written petition for leave to intervene. As required by 10 CFR 2.309, a 
petition for leave to intervene shall set forth with particularity the 
interest of the petitioner in the proceeding and how that interest may 
be affected by the results of the proceeding. The petition must provide 
the name, address, and

[[Page 10920]]

telephone number of the petitioner and specifically explain the reasons 
why intervention should be permitted with particular reference to the 
following factors: (1) The nature of the petitioner's right under the 
Act to be made a party to the proceeding; (2) the nature and extent of 
the petitioner's property, financial, or other interest in the 
proceeding; and (3) the possible effect of any order that may be 
entered in the proceeding on the petitioner's interest.
    A petition for leave to intervene must also include a specification 
of the contentions that the petitioner seeks to have litigated in the 
hearing. For each contention, the petitioner must provide a specific 
statement of the issue of law or fact to be raised or controverted, as 
well as a brief explanation of the basis for the contention. 
Additionally, the petitioner must demonstrate that the issue raised by 
each contention is within the scope of the proceeding and is material 
to the findings the NRC must make to support the granting of a license 
amendment in response to the application. The petition must also 
include a concise statement of the alleged facts or expert opinions 
which support the position of the petitioner and on which the 
petitioner intends to rely at hearing, together with references to the 
specific sources and documents on which the petitioner intends to rely. 
Finally, the petition must provide sufficient information to show that 
a genuine dispute exists with the applicant on a material issue of law 
or fact, including references to specific portions of the application 
for amendment that the petitioner disputes and the supporting reasons 
for each dispute, or, if the petitioner believes that the application 
for amendment fails to contain information on a relevant matter as 
required by law, the identification of each failure and the supporting 
reasons for the petitioner's belief. Each contention must be one that, 
if proven, would entitle the petitioner to relief.
    Those permitted to intervene become parties to the proceeding, 
subject to any limitations in the order granting leave to intervene, 
and have the opportunity to participate fully in the conduct of the 
hearing with respect to resolution of that person's admitted 
contentions, including the opportunity to present evidence and to 
submit a cross-examination plan for cross-examination of witnesses, 
consistent with NRC regulations, policies, and procedures. The Atomic 
Safety and Licensing Board will set the time and place for any 
prehearing conferences and evidentiary hearings, and the appropriate 
notices will be provided.
    Non-timely petitions for leave to intervene and contentions, 
amended petitions, and supplemental petitions will not be entertained 
absent a determination by the Commission, the Atomic Safety and 
Licensing Board or a Presiding Officer that the petition should be 
granted and/or the contentions should be admitted based upon a 
balancing of the factors specified in 10 CFR 2.309(c)(1)(i)-(viii).
    A State, County, Municipality, Federally-recognized Indian Tribe, 
or agencies thereof, may submit a petition to the Commission to 
participate as a party under 10 CFR 2.309(d)(2). The petition should 
state the nature and extent of the petitioner's interest in the 
proceeding. The petition should be submitted to the Commission by March 
21, 2011. The petition must be filed in accordance with the filing 
instructions in Section IV of this document, and should meet the 
requirements for petitions for leave to intervene set forth in this 
section, except that State and federally-recognized Indian Tribes do 
not need to address the standing requirements in 10 CFR 2.309(d)(1) if 
the facility is located within its boundaries. The entities listed 
above could also seek to participate in a hearing as a nonparty 
pursuant to 10 CFR 2.315(c).
    Any person who does not wish, or is not qualified, to become a 
party to this proceeding may request permission to make a limited 
appearance pursuant to the provisions of 10 CFR 2.315(a). A person 
making a limited appearance may make an oral or written statement of 
position on the issues, but may not otherwise participate in the 
proceeding. A limited appearance may be made at any session of the 
hearing or at any prehearing conference, subject to such limits and 
conditions as may be imposed by the Atomic Safety and Licensing Board. 
Persons desiring to make a limited appearance are requested to inform 
the Secretary of the Commission by March 21, 2011.

VII. Electronic Submissions (E-Filing)

    All documents filed in NRC adjudicatory proceedings, including a 
request for hearing, a petition for leave to intervene, any motion or 
other document filed in the proceeding prior to the submission of a 
request for hearing or petition to intervene, and documents filed by 
interested governmental entities participating under 10 CFR 2.315(c), 
must be filed in accordance with the NRC E-Filing rule (72 FR 49139, 
August 28, 2007). The E-Filing process requires participants to submit 
and serve all adjudicatory documents over the Internet, or in some 
cases to mail copies on electronic storage media. Participants may not 
submit paper copies of their filings unless they seek an exemption in 
accordance with the procedures described below.
    To comply with the procedural requirements of E-Filing, at least 
ten (10) days prior to the filing deadline, the participant should 
contact the Office of the Secretary by e-mail at 
hearing.docket@nrc.gov, or by telephone at (301) 415-1677, to request 
(1) a digital ID certificate, which allows the participant (or its 
counsel or representative) to digitally sign documents and access the 
E-Submittal server for any proceeding in which it is participating; and 
(2) advise the Secretary that the participant will be submitting a 
request or petition for hearing (even in instances in which the 
participant, or its counsel or representative, already holds an NRC-
issued digital ID certificate). Based upon this information, the 
Secretary will establish an electronic docket for the hearing in this 
proceeding if the Secretary has not already established an electronic 
docket.
    Information about applying for a digital ID certificate is 
available on NRC's public Web site at https://www.nrc.gov/site-help/e-submittals/apply-certificates.html. System requirements for accessing 
the E-Submittal server are detailed in NRC's ``Guidance for Electronic 
Submission,'' which is available on the agency's public Web site at 
https://www.nrc.gov/site-help/e-submittals.html. Participants may 
attempt to use other software not listed on the Web site, but should 
note that the NRC's E-Filing system does not support unlisted software, 
and the NRC Meta System Help Desk will not be able to offer assistance 
in using unlisted software.
    If a participant is electronically submitting a document to the NRC 
in accordance with the E-Filing rule, the participant must file the 
document using the NRC's online, Web-based submission form. In order to 
serve documents through EIE, users will be required to install a Web 
browser plug-in from the NRC Web site. Further information on the Web-
based submission form, including the installation of the Web browser 
plug-in, is available on the NRC's public Web site at https://www.nrc.gov/site-help/e-submittals.html.
    Once a participant has obtained a digital ID certificate and a 
docket has been created, the participant can then submit a request for 
hearing or petition for leave to intervene. Submissions should be in 
Portable Document Format

[[Page 10921]]

(PDF) in accordance with NRC guidance available on the NRC public Web 
site at https://www.nrc.gov/site-help/e-submittals.html. A filing is 
considered complete at the time the documents are submitted through the 
NRC's E-Filing system. To be timely, an electronic filing must be 
submitted to the E-Filing system no later than 11:59 p.m. Eastern Time 
on the due date. Upon receipt of a transmission, the E-Filing system 
time-stamps the document and sends the submitter an e-mail notice 
confirming receipt of the document. The E-Filing system also 
distributes an e-mail notice that provides access to the document to 
the NRC Office of the General Counsel and any others who have advised 
the Office of the Secretary that they wish to participate in the 
proceeding, so that the filer need not serve the documents on those 
participants separately. Therefore, applicants and other participants 
(or their counsel or representative) must apply for and receive a 
digital ID certificate before a hearing request/petition to intervene 
is filed so that they can obtain access to the document via the E-
Filing system.
    A person filing electronically using the agency's adjudicatory E-
Filing system may seek assistance by contacting the NRC Meta System 
Help Desk through the ``Contact Us'' link located on the NRC Web site 
at https://www.nrc.gov/site-help/e-submittals.html, by e-mail at 
MSHD.Resource@nrc.gov, or by a toll-free call at 866-672-7640. The NRC 
Meta System Help Desk is available between 8 a.m. and 8 p.m., Eastern 
Time, Monday through Friday, excluding government holidays.
    Participants who believe that they have a good cause for not 
submitting documents electronically must file an exemption request, in 
accordance with 10 CFR 2.302(g), with their initial paper filing 
requesting authorization to continue to submit documents in paper 
format. Such filings must be submitted by: (1) First class mail 
addressed to the Office of the Secretary of the Commission, U.S. 
Nuclear Regulatory Commission, Washington, DC 20555-0001, Attention: 
Rulemaking and Adjudications Staff; or (2) courier, express mail, or 
expedited delivery service to the Office of the Secretary, Sixteenth 
Floor, One White Flint North, 11555 Rockville Pike, Rockville, Maryland 
20852, Attention: Rulemaking and Adjudications Staff. Participants 
filing a document in this manner are responsible for serving the 
document on all other participants. Filing is considered complete by 
first-class mail as of the time of deposit in the mail, or by courier, 
express mail, or expedited delivery service upon depositing the 
document with the provider of the service. A presiding officer, having 
granted an exemption request from using E-Filing, may require a 
participant or party to use E-Filing if the presiding officer 
subsequently determines that the reason for granting the exemption from 
use of E-Filing no longer exists.
    Documents submitted in adjudicatory proceedings will appear in 
NRC's electronic hearing docket which is available to the public at 
https://ehd1.nrc.gov/EHD, unless excluded pursuant to an order of the 
Commission, or the presiding officer. Participants are requested not to 
include personal privacy information, such as social security numbers, 
home addresses, or home phone numbers in their filings, unless an NRC 
regulation or other law requires submission of such information. With 
respect to copyrighted works, except for limited excerpts that serve 
the purpose of the adjudicatory filings and would constitute a Fair Use 
application, participants are requested not to include copyrighted 
materials in their submission.
    Petitions for leave to intervene must be filed no later than 20 
days from February 28, 2011. Non-timely filings will not be entertained 
absent a determination by the presiding officer that the petition or 
request should be granted or the contentions should be admitted, based 
on a balancing of the factors specified in 10 CFR 2.309(c)(1)(i)-
(viii).

    Dated at Rockville, Maryland, this 16th day of February, 2011.

    For the Nuclear Regulatory Commission.
Keith I. McConnell,
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.

United States of America

Nuclear Regulatory Commission

[Docket No. 70-0925]

License No. SNM-928

In the Matter of Cimarron Corporation, Oklahoma City, OK; Order 
Transferring License No. SNM-928 for the Cimarron Site

I

    Cimarron Corporation is the holder of License SNM-928, which 
authorizes the possession of Byproduct, Source, and/or Special Nuclear 
Material at the Cimarron Site in Crescent, Oklahoma. In accordance with 
Amendment No. 20 of the license, the license will not expire until the 
United States Nuclear Regulatory Commission (``NRC'') terminates it.

II

    The Kerr-McGee Corporation (KMC) operated two plants at the 
Cimarron Site between 1965 and 1975, each under its own separate Atomic 
Energy Commission license. Radioactive Materials License SNM-928 
(Docket No. 70-0925) was issued under 10 CFR part 70 for the Uranium 
Fuel Fabrication Facility, and Radioactive Materials License SNM-1174 
(Docket No. 70-1193) was issued under 10 CFR part 70 for the Mixed 
Oxide Fuel Fabrication (MOFF) Facility.
    Subsequently, on October 26, 1988, Cimarron Corporation, a wholly-
owned subsidiary of KMC, became responsible for the Cimarron Site 
(License SNM-928, Amendment 6). After Cimarron Corporation ceased 
operations, NRC terminated Radioactive Materials License SNM-1174 by 
letter dated February 5, 1993. Although Radioactive Materials License 
SNM-1174 was terminated, the MOFF plant building exterior surfaces and 
grounds were retained under Radioactive Materials License SNM-928. 
Cimarron Corporation began decommissioning in 1977. As part of its 
decommissioning program, Cimarron Corporation divided the site into 3 
major areas (Areas I-III) which were subdivided into 15 discrete 
subareas (Subareas A-O). To date, most of the decommissioning 
activities needed for release of the Cimarron Site for unrestricted use 
and to terminate Radioactive Materials License SNM-928 have been 
completed. The remaining activities to be completed include the release 
of Subareas F, G, and N as well as groundwater remediation. Groundwater 
contamination has been identified in Subareas F and C, as well as in 
the western upland and the western alluvial areas of the site.
    Final status surveys and confirmatory surveys have confirmed that 
Subareas G and N are releasable for unrestricted use, but NRC has 
determined that these areas should not be released until groundwater 
remediation is complete. Because groundwater exceeds license criteria 
in Subarea F, this area cannot be released for unrestricted use until 
groundwater remediation is complete.
    In November 2005, KMC transferred ownership of Cimarron Corporation 
to Tronox Incorporated. Cimarron Corporation considered several 
alternatives for groundwater remediation including natural attenuation, 
excavation, bioremediation, and the use of institutional controls. On

[[Page 10922]]

December 11, 2006, Cimarron Corporation submitted its proposal to use 
bioremediation.
    The NRC staff conducted an expanded acceptance review of the 
December 11, 2006, bioremediation proposal. By letter dated March 28, 
2007, the NRC rejected the proposal because deficiencies in the 
information provided precluded the staff from conducting a detailed 
technical review. On June 2, 2008, Cimarron Corporation submitted a 
revised license amendment request for the use of bioremediation and 
supplemented the request with additional information on September 5, 
2008. The staff had several interactions with Cimarron Corporation 
which resulted in Cimarron Corporation submitting a revised Groundwater 
Decommissioning Plan on March 31, 2009. The staff completed its 
acceptance review of the Groundwater Decommissioning Plan on May 19, 
2009.
    The NRC has determined that the Cimarron facility poses no 
immediate threat to public health and safety.

III

    On January 12, 2009, Tronox Incorporated and 14 of its affiliates 
(collectively ``Debtors'') filed voluntary petitions for reorganization 
under Chapter 11, Title 11 of the United States Code, 11 U.S.C. 1101 et 
seq., as amended, in the United States Bankruptcy Court, Southern 
District of New York. Cimarron Corporation, a wholly owned subsidiary 
of Tronox Incorporated, an NRC licensee, is a debtor in that case. On 
January 12, 2009, Debtors also informed the NRC by letter of the 
bankruptcy filing. By letter dated February 11, 2009, the NRC notified 
Cimarron Corporation of its continuing obligations under its NRC 
license to comply with NRC requirements. On January 26, 2009, the NRC 
advised the United States Department of Justice (DOJ) of its interest 
in the bankruptcy proceeding and on June 22, 2009, at DOJ's request, 
the NRC submitted a Proof of Claim Referral.
    Subsequently, Debtors and DOJ, on behalf of and together with 
certain Federal and State entities including the NRC, entered into 
settlement discussions with regard to certain sites owned by Debtors 
including sites with known or potential environmental contamination 
that are the subject of clean-up obligations under Federal, Tribal, and 
State environmental laws. Those discussions resulted in the development 
of a global environmental settlement agreement (Settlement Agreement). 
On November 23, 2010, the proposed Settlement Agreement was filed with 
the Bankruptcy Court. On January 26, 2011, the Bankruptcy Court entered 
an order approving the Settlement Agreement.
    The NRC, which had filed claims in bankruptcy against Cimarron 
Corporation, entered into the Settlement Agreement rather than involve 
the NRC in a protracted legal dispute over the limited funds that would 
be available for site remediation from Cimarron Corporation assets. The 
NRC believes that measures taken pursuant to the Settlement Agreement 
will permit remediation of the Cimarron Site to proceed in a timelier 
manner and will maximize the amount of funding available for the 
remediation of the Cimarron Site.
    The Settlement Agreement provides that on the date that the 
Settlement Agreement becomes effective (``Effective Date''), Debtors 
will transfer all of their right, title and interest related to the 
Cimarron Site to the Cimarron Environmental Response Trust (``Cimarron 
Trust''). In accordance with the Settlement Agreement, the purpose of 
the Cimarron Trust shall be to: (i) Act as successor to Debtors solely 
for the purpose of performing, managing, and funding implementation of 
all decommissioning and/or site control and maintenance activities 
pursuant to the terms and conditions of the Cimarron License and an 
NRC-approved decommissioning plan, and all environmental actions 
required under Federal or State law; (ii) own the Cimarron Site; (iii) 
carry out administrative functions related to the performance of work 
by or on behalf of the Cimarron Site; (iv) fulfill other obligations as 
set forth in the Settlement Agreement; (v) pay certain regulatory fees 
and oversight costs; and (vi) ultimately sell, transfer or otherwise 
dispose or facilitate the reuse of all or part of the Cimarron Trust 
assets, if possible. In conjunction with the development of the 
Settlement Agreement, DOJ, the NRC, and the State of Oklahoma undertook 
to identify a Trustee to administer the Cimarron Trust. Environmental 
Properties Management, LLC, not individually but solely in its 
representative capacity as Cimarron Trustee, has been appointed as the 
Cimarron Trustee to administer the Cimarron Trust and the Cimarron 
Trust Accounts, in accordance with the Settlement Agreement and a 
Cimarron Environmental Response Trust Agreement (``Cimarron Trust 
Agreement''), materially consistent with the Settlement Agreement to be 
separately executed by the parties.
    The Settlement Agreement further provides that on or before the 
Effective Date, with the approval of the NRC and in accordance with the 
Atomic Energy Act of 1954, as amended (42 U.S.C. 2011 et seq.) and 
applicable regulations in 10 CFR part 70, the Radioactive Materials 
License SNM-928 held by Cimarron Corporation shall either be 
transferred to the Cimarron Trust; be transferred to Environmental 
Properties Management, LLC, or be transferred to a person or entity 
retained by the Cimarron Trustee and approved by NRC to hold the 
Cimarron License pursuant to an Order Transferring License issued by 
the NRC. NRC has been informed that the effective date of the 
settlement agreement is February 14, 2011.

IV

    Remediation of the Cimarron Site is to be conducted in accordance 
with the terms and conditions of License SNM-928, the Settlement 
Agreement, and the Cimarron Trust Agreement. The Trustee has agreed to 
these terms and conditions.
    The Trustee's maintenance of the site and administration of the 
site in accordance with License SNM-928, the terms of the Settlement 
Agreement, the Cimarron Trust Agreement, 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, DOJ in 
coordination with the NRC, and the State of Oklahoma, selected 
Environmental Properties Management, LLC, as Trustee. Environmental 
Properties Management, LLC, is qualified to perform the duties 
enumerated in this Order.
    In view of the foregoing, I have authorized the transfer of License 
SNM-928 to the Cimarron Trust, such license to be amended to reflect 
the change in the named licensee and an effective date coinciding with 
the effective date of the Settlement Agreement. 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 53, 62, 161(b), 161(i),161(o), 
and 184 of the Atomic Energy Act of 19154, as amended (42 U.S.C. et 
seq.), and the Commission's regulations in 10 CFR part 70,  it is 
hereby ordered that, effective February 14, 2011, License SNM-928 is 
transferred to the Cimarron Trust and the Trustee is authorized to

[[Page 10923]]

possess Byproduct, Source, and Special Nuclear Material at the Cimarron 
Site pursuant to the terms and conditions of License SNM-928. It is 
further ordered that:
    (1) The Trustee shall comply with all conditions set forth in the 
Settlement Agreement and any amendments thereto, and the Cimarron Trust 
Agreement and any amendments thereto.
    (2) Within 60 days of the date of this Order, and every 180 days 
thereafter, the Trustee shall submit a report to the Deputy Director, 
Division of Waste Management and Environmental Protection, Mailstop T8-
F5, U.S. Nuclear Regulatory Commission, 11545 Rockville Pike, 
Rockville, Maryland 20852, detailing all actions and associated actual 
expenditures for the previous period and a projection of actions and 
expenses for the subsequent period.
    (3) Upon completion of the groundwater remediation and in 
conformance with the requirements in 10 CFR part 70 and the conditions 
set forth in License SNM-928, the Cimarron Trustee shall, within 30 
days, conduct a radiation survey of the site, and within 90 days of 
completion of the radiation survey, submit a final status survey report 
to the Deputy Director, Mailstop T8-F5, U.S. Nuclear Regulatory 
Commission, 11545 Rockville Pike, Rockville, Maryland 20852 for NRC 
review, to demonstrate that the site meets the criteria for 
unrestricted release.
    (4) The Trustee's responsibilities, liabilities and authority under 
License SNM-928 shall terminate only upon Order of the NRC.
    (5) No more than 5 percent of the remaining funds in the Cimarron 
Federal Environmental Cost Account shall be spent in any 6-month period 
without NRC approval.
    (6) Pursuant to Paragraph 56(c)(ii) of the Settlement Agreement, 
the assets of the Cimarron Standby Trust Fund shall not be accessed 
until further Order issued by the NRC.
    (7) The requirements in this Order may only be modified in writing 
by the Director, Office of Federal and State Materials and 
Environmental Management Programs.

VI

    Any person adversely affected by this Order, other than Cimarron or 
the Trustee, may request a hearing within 20 days of its issuance. Any 
request for a hearing shall be submitted to Charles L. Miller, 
Director, Office of Federal and State Materials and Environmental 
Management Programs, Mailstop T8-A23, U.S. Nuclear Regulatory 
Commission, 11545 Rockville Pike, Rockville, MD 20852, and to the 
Trustee, Environmental Properties Management, LLC, Attn: Mr. Bill 
Halliburton, Administrator, Cimarron Environmental Response Trust, c/o 
Environmental Properties Management, LLC, 9400 Ward Parkway, Kansas 
City, Missouri 64114. 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 CFR 2.309.
    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 CFR 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.

    For the Nuclear Regulatory Commission.

    Dated at Rockville, Maryland, this 14th day of February, 2011.

Charles L. Miller,

Director, Office of Federal and State Materials and Environmental 
Management Programs.

[FR Doc. 2011-4348 Filed 2-25-11; 8:45 am]
BILLING CODE 7590-01-P