80 FR 66056 - Strata Energy, Inc.

NUCLEAR REGULATORY COMMISSION

Federal Register Volume 80, Issue 208 (October 28, 2015)

Page Range		66056-66057
FR Document		2015-27483

The U.S. Nuclear Regulatory Commission (NRC) is issuing a temporary exemption from certain NRC financial assurance requirements to Strata Energy, Inc. (Strata), in response to its annual financial assurance update for its Ross In-Situ Recovery (ISR) project. Issuance of this temporary exemption will not remove the requirement for Strata 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.

Federal Register, Volume 80 Issue 208 (Wednesday, October 28, 2015)

[Federal Register Volume 80, Number 208 (Wednesday, October 28, 2015)]
[Notices]
[Pages 66056-66057]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2015-27483]

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NUCLEAR REGULATORY COMMISSION

[Docket Nos. 040-09091; NRC-2011-0148]

Strata Energy, Inc.

AGENCY: Nuclear Regulatory Commission.

ACTION: Temporary exemption.

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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is issuing a
temporary exemption from certain NRC financial assurance requirements
to Strata Energy, Inc. (Strata), in response to its annual financial
assurance update for its Ross In-Situ Recovery (ISR) project. Issuance
of this temporary exemption will not remove the requirement for Strata
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-2011-0148 when contacting the
NRC about the availability of information regarding this document. You
may obtain publicly-available information related to this document
using any of the following methods:
Federal Rulemaking Web site: Go to http://www.regulations.gov and search for Docket ID NRC-2011-0148. Address
questions about NRC dockets to Carol Gallagher; telephone: 301-415-
3463; 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 obtain publicly-available documents online in the
ADAMS Public Documents collection at http://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 (if that document
is available in ADAMS) is provided the first time that a document is
referenced.
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: John L. Saxton, Office of Nuclear
Material Safety and Safeguards; U.S. Nuclear Regulatory Commission,
Washington DC 20555-0001; telephone: 301-415-0697; email:
John.Saxton@nrc.gov.

SUPPLEMENTARY INFORMATION:

I. Background

Pursuant to part 40 of title 10 of the Code of Federal Regulations
(10 CFR), appendix A, Criterion 9 and NRC Materials License SUA-1601,
License Condition 9.5, Strata is required 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 of the Ross
ISR facility located in Crook County, Wyoming. By letter dated January
14, 2015 (ADAMS Accession No. ML14337A251), Strata submitted to the NRC
its annual surety update for 2015. The NRC's staff reviewed the annual
financial surety update and found the values reasonable for the
required reclamation activities (ADAMS Accession No. ML14162A031).
Strata 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, 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 bond or
letter of credit. The purpose of an STA is to provide a separate
account to hold the decommissioning funds in the event of a default.
Consistent with provisions of 10 CFR part 40, appendix A, Criterion
9(d), Strata 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. Strata 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

[[Page 66057]]

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 Strata an exemption to the STA requirements in 10 CFR part 40,
appendix A, Criterion 9, for the current surety arrangement until
December 31, 2016 to allow the NRC an opportunity 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.

II. Discussion

A. The Exemption Is Authorized by Law

The NRC staff concluded that the proposed exemption is authorized
by law as 10 CFR 40.14(a) expressly allows for an exemption to the
requirements in 10 CFR part 40, appendix A, Criterion 9, and the
proposed exemption would not be 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 the licensee provide adequate financial assurance through an
approved mechanism (e.g., a surety bond, irrevocable letter of credit)
would remain unaffected by the exemption. Rather, the exemption would
only pertain to the establishment of a dedicated trust in which funds
could be deposited in the event that the financial assurance mechanism
needed to be liquidated. The requirement in 10 CFR part 40, appendix A,
Criterion 9(d), allows for the financial or surety arrangements to be
consolidated within a State's similar financial assurance instrument.
The NRC has determined that while the State of Wyoming 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 (i.e.,
decommissioning purposes). Because the licensee remains obligated to
establish an adequate financial assurance mechanism for its licensed
sites, and the NRC has approved such a mechanism, sufficient funds are
available in the event that the site would need 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 limited 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 proposed exemption would not involve or implicate the common
defense or security. Therefore, granting the exemption will have no
effect on the common defense and security.

D. The Exemption Is in the Public Interest

The proposed exemption would enable the NRC staff to evaluate the
State of Wyoming's separate account provision and the NRC's STA
requirement to determine if they are comparable. The evaluation process
will allow the NRC to determine whether the licensee's compliance with
the state law provision will sufficiently address the NRC requirement
as well, and therefore provide clarity on the implementation of the NRC
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 which the NRC, by regulation, has
determined do not individually or cumulatively have a significant
effect on the environment, 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 NRC staff finds that the STA exemption
involves surety, insurance and/or indemnity requirements and that
granting Strata this temporary exemption from the requirement of
establishing a standby trust arrangement 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. Conclusion

Accordingly, the NRC has determined that, pursuant to 10 CFR
40.14(a), the proposed 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. NRC hereby grants Strata Energy, Inc. an exemption from the
requirement in 10 CFR part 40, Appendix A, Criterion 9 to set up a
standby trust 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, for the Ross ISR Project.
At that time, Strata will be required to ensure compliance with the STA
requirements.

Dated at Rockville, Maryland, this 21st day of October 2015.
For the Nuclear Regulatory Commission.
Andrew Persinko,
Deputy Director, Division of Decommissioning, Uranium Recovery and
Environmental Programs, Office of Nuclear Material Safety and
Safeguards.
[FR Doc. 2015-27483 Filed 10-27-15; 8:45 am]
BILLING CODE 7590-01-P

Federal Register / Vol. 80, No. 208 / Wednesday, October 28, 2015 / Notices 66057

under the provisions of this act shall be a State’s similar financial assurance would not result in any significant
deposited with the State treasurer in a instrument. The NRC has determined hazards consideration; change or
separate account for reclamation that while the State of Wyoming does increase in the amount of any offsite
purposes.’’ Under Wyoming Department not require an STA, the special revenue effluents; increase in individual or
of Environmental Quality (WDEQ) account may serve a similar purpose in cumulative public or occupational
financial assurance requirements, that forfeited funds are not deposited radiation exposure; construction
WDEQ holds permit bonds in a into the State treasury for general fund impacts; or increase in the potential for
fiduciary fund called an agency fund. If use, but instead are set aside in the or consequence from radiological
a bond is forfeited, the forfeited funds special revenue account to be used accidents. The NRC staff finds that the
are moved to a special revenue account. exclusively for site-specific reclamation STA exemption involves surety,
Although the Wyoming special revenue (i.e., decommissioning purposes). insurance and/or indemnity
account is not an STA, the special Because the licensee remains obligated requirements and that granting Strata
revenue account serves a similar to establish an adequate financial this temporary exemption from the
purpose in that forfeited funds are not assurance mechanism for its licensed requirement of establishing a standby
deposited into the State treasury for sites, and the NRC has approved such a trust arrangement would not result in
general fund use, but instead are set mechanism, sufficient funds are any significant hazards or increases in
aside in the special revenue account to available in the event that the site offsite effluents, radiation exposure,
be used exclusively for reclamation (i.e., would need to be decommissioned. A construction impacts, or potential
decommissioning purposes). temporary delay in establishing an STA radiological accidents. Therefore, an
The NRC has the discretion, under 10 does not impact the present availability environmental assessment is not
CFR 40.14(a), to grant an exemption and adequacy of the actual financial required.
from the requirements of a regulation in assurance mechanism. Therefore, the
10 CFR part 40 on its own initiative, if limited exemption being issued by the IV. Conclusion
the NRC determines the exemption is NRC herein presents no undue risk to Accordingly, the NRC has determined
authorized by law and will not endanger public health and safety. that, pursuant to 10 CFR 40.14(a), the
life or property or the common defense C. The Exemption Is Consistent With the proposed temporary exemption is
and security and is otherwise in the Common Defense and Security authorized by law, will not present an
public interest. The NRC has elected to undue risk to the public health and
grant Strata an exemption to the STA The proposed exemption would not
involve or implicate the common safety, is consistent with the common
requirements in 10 CFR part 40, defense and security, and is in the
appendix A, Criterion 9, for the current defense or security. Therefore, granting
the exemption will have no effect on the public interest. NRC hereby grants
surety arrangement until December 31, Strata Energy, Inc. an exemption from
2016 to allow the NRC an opportunity common defense and security.
the requirement in 10 CFR part 40,
to evaluate whether the State of D. The Exemption Is in the Public Appendix A, Criterion 9 to set up a
Wyoming’s separate account Interest standby trust to receive funds in the
requirements for financial assurance The proposed exemption would event the NRC or the State regulatory
instruments it holds is consistent with enable the NRC staff to evaluate the agency exercises is right to collect the
the NRC’s STA requirements. State of Wyoming’s separate account surety. This exemption will expire on
II. Discussion provision and the NRC’s STA December 31, 2016, for the Ross ISR
requirement to determine if they are Project. At that time, Strata will be
A. The Exemption Is Authorized by Law comparable. The evaluation process will required to ensure compliance with the
The NRC staff concluded that the allow the NRC to determine whether the STA requirements.
proposed exemption is authorized by licensee’s compliance with the state law Dated at Rockville, Maryland, this 21st day
law as 10 CFR 40.14(a) expressly allows provision will sufficiently address the of October 2015.
for an exemption to the requirements in NRC requirement as well, and therefore For the Nuclear Regulatory Commission.
10 CFR part 40, appendix A, Criterion provide clarity on the implementation Andrew Persinko,
9, and the proposed exemption would of the NRC regulation in this instance. Deputy Director, Division of
not be contrary to any provision of the Therefore, granting the exemption is in Decommissioning, Uranium Recovery and
Atomic Energy Act of 1954, as amended. the public interest. Environmental Programs, Office of Nuclear
Material Safety and Safeguards.
B. The Exemption Presents no Undue E. Environmental Considerations
Risk to Public Health and Safety [FR Doc. 2015–27483 Filed 10–27–15; 8:45 am]
The NRC staff has determined that BILLING CODE 7590–01–P
The exemption is related to the granting of an exemption from the
financial surety. The requirement that requirements of 10 CFR part 40,
the licensee provide adequate financial appendix A, Criterion 9 belongs to a NUCLEAR REGULATORY
assurance through an approved category of regulatory actions which the COMMISSION
mechanism (e.g., a surety bond, NRC, by regulation, has determined do
irrevocable letter of credit) would not individually or cumulatively have a Advisory Committee on Reactor
remain unaffected by the exemption. significant effect on the environment, Safeguards Meeting of the ACRS
Rather, the exemption would only and as such do not require an Subcommittee on Plant License
mstockstill on DSK4VPTVN1PROD with NOTICES

pertain to the establishment of a environmental assessment. The Renewal; Notice of Meeting
dedicated trust in which funds could be exemption from the requirement to have
deposited in the event that the financial an STA in place is eligible for The Advisory Committee on Reactor
assurance mechanism needed to be categorical exclusion under 10 CFR Safeguards (ACRS) Subcommittee on
liquidated. The requirement in 10 CFR 51.22(c)(25)(vi)(H), which provides that Plant License Renewal will hold a
part 40, appendix A, Criterion 9(d), exemptions from surety, insurance, or meeting on November 17, 2015, Room
allows for the financial or surety indemnification requirements are T–2B1, 11545 Rockville Pike, Rockville,
arrangements to be consolidated within categorically excluded if the exemption Maryland.

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Document Created: 2018-02-27 08:57:42
Document Modified: 2018-02-27 08:57:42

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
Action		Temporary exemption.
Contact		John L. Saxton, Office of Nuclear Material Safety and Safeguards; U.S. Nuclear Regulatory Commission, Washington DC 20555-0001; telephone: 301-415-0697; email: [email protected]
FR Citation		80 FR 66056