Uranerz Energy Corporation, 53464-53466 [2014-21413]

Agencies

• NUCLEAR REGULATORY COMMISSION

[Federal Register Volume 79, Number 174 (Tuesday, September 9, 2014)]
[Notices]
[Pages 53464-53466]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-21413]


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NUCLEAR REGULATORY COMMISSION

[Docket No. 04009067; NRC-2014-0020]


Uranerz Energy Corporation

AGENCY: Nuclear Regulatory Commission.

ACTION: Temporary exemption; issuance.

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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 https://www.regulations.gov and search for Docket ID NRC-2014-0020. Address 
questions about NRC dockets to Carol Gallagher; telephone: 301-287-
3422; email: Carol.Gallagher@nrc.gov. 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 https://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 pdr.resource@nrc.gov. 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.

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     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: Ron.Linton@nrc.gov.

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,

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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]
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