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Sequoyah Fuels Corporation

1.0 Site Identification

2.0 Site Status Summary

This 600-acre parcel, located in Gore, Oklahoma, is the site at which the Sequoyah Fuels Corporation (SFC) operated a uranium conversion facility under Materials License SUB-1010, but that facility ceased operation in 1993. Since that time, uranium and thorium contamination of the soils and subsoils has been identified at the site, and the groundwater is contaminated with uranium, thorium, and metals.

In 1998 and 1999, SFC submitted decommissioning plans for the site, which proposed using an onsite, above-grade disposal cell for the permanent disposal of waste. Those plans also proposed restricted release of the site, in accordance with Title 10, Section 20.1403, of the Code of Federal Regulations (10 CFR 20.1403), also known as 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, as defined in Section 11e.(2) of the Atomic Energy Act of 1954, as amended. Under Section 11e.(2), byproduct material sites must be remediated in accordance with Appendix A to 10 CFR Part 40. Additionally, sites remediated in accordance with Appendix A, which 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, followed by updated submittals dated August 8, 2003, August 29, 2003, February 17, 2004, April 12, 2005 and January 4, 2008. Based on its review, the staff published its final Environmental Impact Statement (EIS) in May 2008. The NRC staff subsequently completed its Safety Evaluation Review, and approved SFC's reclamation plan in April 2009. Completion of the EIS and approval of the reclamation plan are substantial accomplishments that have allowed progress to be made in remediating the SFC site.

The regulations governing reclamation of uranium mill tailings appear primarily in 10 CFR Part 40, with the relevant technical criteria provided in Appendix A. In June 2003, SFC submitted a groundwater monitoring plan and a Groundwater Corrective Action Plan. In August 2005, the staff approved the ground water monitoring plan. However, the staff also reviewed the ground water corrective action plan and, in April 2008, transmitted a letter identifying 11 open issues that need to be resolved before the staff can approve that plan. NRC and SFC staff held a teleconference in June 2008 to discuss these issues. Although SFC responded to some of the issues in August 2008, its responses to other issues requiring field work or environmental data were not submitted until June 2009. Since that time, other priorities have delayed the staff's review of this submittal, but work on its review is expected to begin in October 2009.

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

5.0 Related Information

• Sequoyah Fuels Corporation Site — Environmental Review
• Outreach Strategy for Indian Tribes Potentially Affected by Uranium Recovery Sites

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Monday, November 16, 2009