410 IAC 5-3-12.5 Specific licenses for source material milling

Sec. 12.5. In addition to the requirements set forth in 410 IAC 5-3-9, a specific license for source material milling will be issued if the applicant submits to the board a satisfactory application as described herein and meets the other conditions specified below: (a) An application for a license to receive title to, receive, possess, and use source material for milling or byproduct material as defined in 410 IAC 5-1-2 shall address the following: (1) Description of the proposed project or action; (2) Area/site characteristics including geology, topography, hydrology, and meteorology; (3) Radiological and nonradiological impacts of the proposed project or action, including waterway and groundwater impacts; (4) Environmental effects of accidents; (5) Long-term impacts including decommissioning, decontamination, and reclamation; and (6) Site and project alternatives. (b) Pursuant to 410 IAC 5-3-10(e), the applicant shall not commence construction of the project until the board has weighed the environmental, economic, technical, and other benefits against the environmental costs and has concluded that the issuance of the license is appropriate. (c) At least 1 full year prior to any major site construction, a preoperational monitoring program shall be conducted to provide complete baseline data on a milling site and its environs. Throughout the construction and operating phases of the mill, an operational monitoring program shall be conducted to measure or evaluate compliance with applicable standards and regulations; to evaluate performance of control systems and procedures; to evaluate environmental impacts of operation; and to detect potential long-term effects. (d) Prior to issuance of the license, the applicant shall establish financial surety arrangements consistent with the requirements of 410 IAC 5-3-10(f). (1) The amount of funds to be ensured by financial surety arrangements shall be based on board-approved cost estimates in an approved plan for decontamination and decommissioning of mill buildings and the milling site to levels which would allow unrestricted use of these areas upon decommissioning, and the reclamation of tailings and/or waste disposal areas. The licensee shall submit this plan in conjunction with an environmental report that addresses the expected environmental impacts of the milling operation, decommissioning and tailings reclamation, and that evaluates alternatives for mitigating these impacts. In establishing specific surety arrangements, the licensee's cost estimates shall take into account total costs that would be incurred if an independent contractor were hired to perform the decommissioning and reclamation work. In order to avoid unnecessary duplication and expense, the board may accept financial sureties that have been consolidated with financial surety arrangements established to meet requirements of other federal or state agencies and/or local governing bodies for such decommissioning, decontamination, reclamation, and long-term site surveillance, provided such arrangements are considered adequate to satisfy these requirements and that portion of the surety which covers the decommissioning and reclamation of the mill, mill tailings site and associated areas, and the long-term funding charge are clearly identified. The licensee's surety mechanism will be reviewed annually by the board to assure that sufficient funds will be available for completion of the reclamation plan if the work had to be performed by an independent contractor. The amount of surety liability should be adjusted to recognize any increases or decreases resulting from inflation, changes in engineering plans, activities performed, and any other conditions affecting costs. Regardless of whether reclamation is phased through the life of the operation or takes place at the end of operations, an appropriate portion of surety liability shall be retained until final compliance with the reclamation plan is determined. This will yield a surety that is at least sufficient at all times to cover the costs of decommissioning, decontamination, and reclamation of the areas that are expected to be disturbed before the next license renewal. The term of the surety mechanism must be open ended, unless it can be demonstrated that another arrangement would provide an equivalent level of assurance. This assurance could be provided with a surety instrument which is written for a specified period of time (e.g., 5 years) which must be automatically renewed unless the surety agent notifies the beneficiary (the state regulatory agency) and the principal (the licensee) some reasonable time (e.g., 90 days) prior to the renewal date of their intention not to renew. In such a situation, the surety requirement still exists and the licensee would be required to submit an acceptable replacement surety within a brief period of time to allow at least 60 days for the regulatory agency to collect. (2) The total amount of funds for reclamation or long-term surveillance and control shall be transferred to the United States if title and custody of such material and its disposal site is transferred to the United States upon termination of a license. Such funds include, but are not limited to, sums collected for long-term surveillance and control. Such funds do not, however, include monies held as surety where no default has occurred, and the reclamation or other bonded activity has been performed. (e) The applicant shall provide procedures describing the means employed to meet the following requirements during the operational phase of any project. (1) Milling operations shall be conducted so that all effluent releases are below the limits of 410 IAC 5-4 and are as low as is reasonably achievable. (2) The mill operator shall conduct daily inspection of any tailings or waste retention systems. Such inspections shall be conducted by a qualified engineer or scientist. Records of such inspections shall be maintained for review by the board. (3) The mill operator shall immediately notify the board of the following: (i) Any failure in a tailings or waste retention system which results in a release of tailings or waste into unrestricted areas, and (ii) Any unusual conditions or conditions not contemplated in the design of the retention system which, if not corrected, could lead to failure of the system and result in a release of tailings or waste into unrestricted areas. (f) Continued Surveillance Requirements for Source Material Mills Having Reclaimed Residues. (1) The final disposition of tailings or wastes at source material milling sites should be such that the need for ongoing active maintenance is not necessary to preserve isolation. As a minimum, annual site inspections shall be conducted by the government agency retaining ultimate custody of the site where tailings or wastes are stored to confirm the integrity of the stabilized tailings or waste systems and to determine the need, if any, for maintenance and/or monitoring. Results of the inspection shall be reported to the U.S. Nuclear Regulatory Commission within 60 days following each inspection. The U.S. Nuclear Regulatory Commission may require more frequent site inspections, if, on the basis of a site-specific evaluation, such a need appears necessary due to the features of a particular tailings or waste disposal system. (2) A minimum charge of $250,000 in 1978 dollars to cover the costs of long-term surveillance shall be paid by each mill operator to the board prior to the termination of a uranium or thorium mill license. If site surveillance or control requirements at a particular site are determined, on the basis of a site-specific evaluation, to be significantly greater than those specified in 410 IAC 5-3-13(f)(1), additional funding requirements may be specified by the board. The total charge to cover the costs of long-term surveillance shall be such that, with an assumed 1 percent annual real interest rate, the collected funds will yield interest in the amount sufficient to cover the annual costs of site surveillance. The charge will be reviewed annually to recognize or adjust for inflation.