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Sequoyah Fuels Corporation

1.0 Site Identification

2.0 Site Status Summary

The 600 acre site is located in Gore, Oklahoma. Under Materials License SUB-1010, the Sequoyah Fuels Corporation (SFC) operated a uranium conversion facility but it has not operated since 1993. Uranium and thorium contamination of the soils and subsoils has been identified at the site. In addition, the groundwater is contaminated with uranium, thorium and metals.

SFC submitted decommissioning plans for the site in 1998 and 1999. The decommissioning plan proposed utilizing an onsite, above-grade disposal cell for the permanent disposal of waste. The plan proposed restricted release of the site in accordance with 10 CFR 20.1403 (the license termination rule). However, restricted release requires the commitment of a responsible party to act as a custodian of the site. SFC was not able to obtain a commitment from an acceptable responsible party, although it held discussions with the U.S. Department of Energy (DOE) in that regard. In January 2001, SFC requested a determination by NRC whether waste from the solvent extraction portion of the uranium hexafluoride conversion process could be classified as byproduct material defined in Section 11e.(2) of the Atomic Energy Act of 1954, as amended. 11e.(2) byproduct material sites must be remediated in accordance with Appendix A of 10 CFR Part 40. Additionally, sites remediated in accordance with Appendix A, that contain 11e.(2) byproduct material above specified concentrations must be transferred to a government custodian for perpetual custodial care. The custodian can be the State where the 11e.(2) site is located, but if the State declines, DOE must accept the site and become the custodian. In July 2002, the Commission determined that most of the waste material at the site can be classified as 11e.(2) byproduct material. On September 30, 2002, SFC requested an amendment to its license to allow it to possess 11e.(2) byproduct material. On December 11,2002, the NRC amended the license to allow possession of 11e.(2) byproduct material and include several conditions necessitated by the change to an 11e.(2) site. One of those conditions (LC 48) required SFC to submit a site reclamation plan to NRC by March 15, 2003. SFC submitted its reclamation plan by letter dated January 28, 2003. The reclamation plan has been updated by submittals dated August 8, 2003, August 29, 2003, February 17, 2004, and April 12, 2005. The NRC staff is developing a draft Safety Evaluation Report (SER) and an associated Environmental Impact Statement to document its review of SFC's reclamation plan and it's conclusions with respect to the appropriate regulations. The regulations governing reclamation of uranium mill tailings appear primarily in 10 CFR Part 40. Technical criteria appear in Appendix A to Part 40. In June 2003, SFC submitted a ground water monitoring plan and a ground water corrective action plan. In August 2005, the staff approved the ground water monitoring plan. The staff is currently reviewing the ground water corrective action plan.

3.0 Major Technical or Regulatory Issues

There is significant groundwater contamination at this site which the groundwater monitoring and corrective action plan are intended to address. A hearing was granted to the State of Oklahoma and the Cherokee Nation on issues related to the reclamation plan proposed by SFC. Additionally, Oklahoma appealed, to the Tenth Circuit Court of Appeals, the Commission's decision regarding classification of some wastes as 11e.(2) byproduct material. Oklahoma also petitioned for a hearing on SFC's proposed plan to dewater raffinate sludges that were in settlement ponds. Negotiations between Oklahoma, the Cherokee Nation, and SFC were successful in resolving issues. As a result, the lawsuit was withdrawn and the hearings have been terminated.

4.0 Estimated Date For Closure

12/01/2012

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