Kerr-McGee - Cimarron

1.0 Site Identification

2.0 Site Status Summary

The 840 acre Cimarron site in Crescent, Oklahoma is situated along the southern bank of the Cimarron River approximately 30 miles north of Oklahoma City. Most of the site has been decommissioned and released for unrestricted use. Uranium contamination in excess of release criteria is in the groundwater at Burial Area 1 and around Well 1319. Technetium (Tc)-99 exceeding release criteria is in the groundwater in the vicinity of Waste Pond 1 and 2. Concentrations of Tc-99 within applicable release criteria have also been found in Burial Area 1.

The site is also licensed for onsite disposal of up to 500,000 cubic feet of Option 2 [of the 1981 Branch Technical Position (BTP)] contaminated soil in Subarea N. NRC staff reviewed Cimarron's Subarea N Report (submitted in January 2002) and performed its independent confirmatory survey in June 2002. Due to an occurrence of groundwater exceeding the 180 pCi/l release limit in a nearby portion of Subarea K, NRC is delaying release of Subarea N until the groundwater issue is resolved. There are no immediate radiological hazards at the site.

The licensee estimates the cost of decommissioning to be approximately $3.6 million. The staff is concerned that this amount may be insufficient for any groundwater remediation method other than monitored natural attenuation (MNA). In June 2008, notified the NRC that MNA has not been effective and submitted a groundwater decommissioning plan proposing the use of bioremediation. The staff rejected this plan and another Groundwater DP was submitted in March 2009. The staff was reviewing this DP when it was directed to cease work because Tronox had declared bankruptcy.

A financial assurance issue arose when on June 12, 2009, Cimarron's parent company, Tronox, filed for bankruptcy. NRC staff has contacted JP Morgan Bank, holder of Cimarron's financial assurance and decided not to call in the financial assurance yet as this would hamper Tronox efforts to recover from bankruptcy. OGC attorneys are also working with the US Attorney on this matter. The Kerr-McGee Corporation (KMC) operated two plants at the Cimarron facility between 1965 and 1975, each under its own separate Atomic Energy Commission license. Radioactive Materials License SNM-928 was issued under 10 CFR Part 70 for the Uranium Fuel Fabrication Facility, and Radioactive Materials License SNM-1174 was issued for the Mixed Oxide Fuel Fabrication (MOFF) Facility. Subsequently, in 1988, Cimarron Corporation, a wholly-owned subsidiary of KMC, became responsible for the Cimarron Facility. 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 began decommissioning in 1977 and has completed most of the decommissioning activities needed for NRC to release the Cimarron site for unrestricted use and to terminate Radioactive Materials License SNM-928. The primary remaining activity to be completed is groundwater remediation. Cimarron considered several alternatives for groundwater remediation including natural attenuation, excavation, and the use of institutional controls. Cimarron submitted its proposal to use bioremediation to NRC in December 2006. Meanwhile, in January 2006, ownership of the site was transferred from Cimarron Corporation to Tronox.

The NRC staff conducted an expanded acceptance review of the bioremediation proposal. In March 2007, the NRC rejected the proposal because of deficiencies in the information provided for the staff to conduct a detailed technical review. NRC and Cimarron met on April 20, 2007 at NRC headquarters to discuss the deficiencies. By letter dated May 18, 2007, the NRC staff transmitted, to Cimarron, a summary of the meeting and the staff's recommendations for a path forward. NRC and Cimarron staff held a telephone conference on September 5, 2007 and December 19, 2007 to discuss issues pertaining to Cimarron's development of its path forward. Staff from the Oklahoma Department of Environmental Quality participated in these calls. On June 2, 2008, Cimarron submitted a revised license amendment request for the use of bioremediation and supplemented the request with additional information in early September 2008. The staff had several interactions with Cimarron which resulted in Cimarron submitting a revised Groundwater Decommissioning Plan in March 2009. However, in January 2009, Tronox notified the NRC that it in chapter 11 bankruptcy. While the initial bankruptcy proceeding was taking place, the staff completed its acceptance review in May 2009. The staff was conducting its detailed technical review when, because of the bankruptcy, it was directed to cease work on the all reviews related to Cimarron.

Since then, the staff has been working with the Department of Justice to develop a Settlement Agreement and to select a trustee to serve as the licensee for the site.

Although the Cimarron facility poses no immediate threat to public health and safety, it is listed in the Complex Site list to ensure timely decommissioning.

3.0 Major Technical or Regulatory Issues

By letter dated January 12, 2009, Cimarron's parent company, Tronox, informed the NRC that it was filed for bankruptcy under Chapter 11 in Federal Bankruptcy Court. The NRC staff responded by letter dated February 11, 2008 to acknowledge the bankruptcy and inform the licensee of its obligations to comply with NRC regulations regardless of the bankruptcy. OGC attorneys are working with the US Attorneys office on this matter.

One significant regulatory issue that was resolved was whether NRC will allow Cimarron to remediate the groundwater under SDMP criteria or if Cimarron's choice of remediation technique will require the use of criteria from the License Termination Rule. OGC reviewed the issue and by letter dated November 10, 2005 stated that Cimarrons preferred technolgies of "pump and treat" or excavation could be performed under SDMP criteria. However, subsequent technical staff and OGC interpretaion will allow for the use of other technologies under SDMP criteria provided that there is no change in the criteria for remediation.

Depending on the groundwater remediation technique that Cimarron proposes,the ODEQ may raise concerns regarding the disposal of soils or effluent discharges.

4.0 Estimated Date For Closure

01/01/2017