NUCLEAR REGULATORY COMMISSION

Illinois: Discontinuance of Certain Regulatory Authority and Responsibility

Within the State

AGENCY: Nuclear Regulatory Commission.

ACTION: Notice of Agreement with the State of Illinois.

SUMMARY: Notice is hereby given that on May 14, 1987, Lando W. Zech,

Jr., Chairman of the Nuclear Regulatory Commission, and on May 18, 1978,

James R. Thompson, Governor of the State of Illinois, signed the Agreement

set forth below for the discontinuance by the Commission and assumption by

the State of certain Commission regulatory authority. The Agreement was

published in accordance with the requirements of Public Law 86-373 (Section

274 of the Atomic Energy Act of 1954, as amended). The exemptions from

the Commission's licensing authority have been published in the Federal

Register and codified as Part 150 of the Commission's regulations in title 10

of the Code of Federal Regulation.

On May 13, 1987, the Commission with Chairman Zech and 

Commissioners Asselstine, Bernthal and Carr agreeing, approved the 

Agreement between the State of Illinois and the NRC pursuant to section 

274b of the Atomic Energy Act, as amended. 

Commissioner Bernthal approved the Agreement between the State of 

Illinois and the Commission. In his judgment, however, all materials and 

contaminated areas which have resulted from operations of the West Chicago 

Rare Earths Facility would more properly be classified as "byproduct 

material" under section lle.(2) of the Atomic Energy Act. As such, 
Commissioner Bernthal believes that jurisdiction for these materials and 

contaminated areas should remain with the Commission until such time as the 

State of Illinois elects to seek authority for all byproduct material. 

In addition, the Commission, with Chairman Zech and Commissioners 

Bernthal and Carr agreeing, approved an Order to Allied-Chemical, Placing 

its uranium conversion plant under continued NRC regulatory authority based 

on common defense and security considerations. Commissioner Asselstine 

disapproved the order. 

Commissioner Roberts did not participate in these actions. 

FOR FURTHER INFORMATION CONTACT: 

Joel O. Lubenau, State, Local and Indian Tribe Programs, Office of 

Governmental and Public Affairs, U.S. Nuclear Regulatory Commission, 

Washington, DC 20555. Phone (301) 492-9887. 

SUPPLEMENTARY INFORMATION 

On December 31, 1987, the Nuclear Regulatory Commission initially 

published for public comment a proposed agreement with the State of Illinois 

for discontinuance by the Commission and assumption by the State of certain 

regulatory authority and the staff’s assessment of the proposed Illinois 

program for regulation of radioactive materials covered by the proposed 

agreement. 

As required by Section 274 of the Atomic Energy Act, the proposed 

Agreement and the staffs’ assessment of the State's proposed radiation control 

program were to be published in the Federal Register once a week for four 

consecutive weeks. Interested persons were invited to submit comments by 

January 30, 1987. The 2nd publication was made on January 7, 1987. The 

December 31st and January 7th publications were determined to have been 
the subject of Federal Register printing errors. As a result, they were 

incomplete and also contained errors. A corrected notice was published 

January 21, 1987 at 52 FR 2309. Since the initial notice was incomplete and 

also contained significant errors, the 4 consecutive week publication cycle 

required by the Act was restarted beginning with the January 21, 1987 notice. 

A revision of the date for public comments was also published at the time (52 

FR 2309) changing it to February 20, 1987. The 2nd consecutive weekly 

notice was published January 28, 1987, at 52 FR 2898. The 3nd consecutive 

weekly notice was published February 4, 1987 at 52 FR 3503 but printing 

errors again occurred, this time resulting in the omission of text. A correction 

notice for this omission was published February 12, 1987 at 52 FR 4589. The 

4th consecutive weekly notice was published February 11, 1987 at 52 FR 

4438. 

The proposed agreement would have included the Allied Chemical 

plant which is one of plants in the United States licensed to convert uranium 

"yellowcake" to UF. (The other plant is Kerr-McGee's Sequoyah plant in 

Oklahoma). The Commission, in its Federal Register notices, noted that it 

was considering whether continued NRC regulation of the Allied Chemical 

Plant is necessary in the interest of the common defense and security of the 

United States. The Allied Chemical plant was identified by DOE as having a 

potential common defense and security significance. Section 274m of the 

Atomic Energy Act, as amended, provides that: 

No agreement entered into under subsection b...shall affect the 

authority of the Commission under subsection 161b. or i to issue rules, 

regulations, or orders to protect the common defense and security... 
The Commission has decided to retain regulatory authority over 

licensees subject to section 274b Agreements which have common defense 

and security significance. An order to effectuated this policy with respect to 

the Allied Chemical license has been issued and is published below. The 

order became effective May 14, 1987. 

Public comments: Five written comments on the proposed Agreement 

and NRC staff assessment were received prior to the end of the comment 

period on February 20, 1987. Three comment letters were submitted by 

Conner and Wetterhahn, P.C., counsel for US Ecology which holds the 

license for the Sheffield low-level waste disposal site. One comment letter 

was received from A. Eugene Rennels, the Mayor of the City of West 

Chicago. One comment letter was received from Covington and Burling, 

counsel representing Kerr-McGee which holds a license for the Kerr-McGee 

West Chicago Rare Earths Facility where thorium processing and recovery 

operations were conducted under an AEC/NRC license. These comments 

were fully considered by the Commission in its deliberations on the Illinois 

request. Summaries of the comments and the staffs responses are available in 

the Commission's public document room at 1717 H Street, NW., Washington, 

DC and the Commission's Region III Office, 799 Roosevelt Road, Building 

No. 4, Glen Ellyn, Illinois. 
Agreement Between the United States Nuclear Regulatory Commission 

and the State of Illinois for Discontinuance of Certain Commission 

Regulatory Authority and Responsibility Within the State Pursuant In 

Section 274 of the Atomic Energy Act of 1954, as Amended 

Whereas, the United States Nuclear Regulatory Commission 

(hereinafter referred to as the Commission) is authorized under section 274 of 

the Atomic Energy Act of 1954, as amended (hereinafter referred to as the 

Act), to enter into agreements with the Governor of any State providing for 

discontinuance of the regulatory authority of the Commission within the State 

under Chapters 6, 7, and 8, and section 161 of the Act with respect to 

byproduct materials as defined in sections 11e.(1) and (2) of the Act, source 

materials, and special nuclear materials in quantities not sufficient to form a 

critical mass; and, 

Whereas, the Governor of the State of Illinois is authorized under 

Illinois Revised Statutes, 1985, ch.111 1/2, par, 216b and ch. 111 1/2, par 

242-19, to enter into this Agreement with the Commission; and, 

Whereas, the Governor of the State of Illinois certified on October 2, 

1986, that the State of Illinois (hereinafter referred to as the State) has a 

program for the control of radiation hazards adequate to protect the public 

health and safety with respect to the materials within the State covered by this 

Agreement, and that the State desires to assume regulatory responsibility for 

such materials; and 

Whereas, the Commission found an May 13, 1987 that the program of 

the State for the regulation of the materials covered by this Agreement is 

compatible with the Commission's program for the regulation of 

such materials and is adequate to protect the, public health and safety, and, 
Whereas, the State and the Commission recognize the desirability and 

importance of' cooperation between the Commission and the State in the 

formulation of standards for protection against hazards of radiation and in 

assuring that State and Commission programs for protection against hazards 

of radiation will be coordinated and compatible; and. 

Whereas, the Commission and the State recognize the desirability of 

reciprocal recognition of licenses and exemptions from licensing of those 

materials subject to this Agreement; and, 

Whereas, this Agreement is entered into pursuant to the provisions of 

the Atomic Energy Act of 1954, as amended; 

Now, therefore, it is hereby agreed between the Commission and the 

Governor of the State, acting in behalf of the State, as follows: 

Article I 

Subject to the exceptions provided in Articles Il, IV and V, the 

Commission shall , discontinue, as of the effective date of this Agreement, the 

regulatory authority of the Commission in the State under Chapters 6, 7, and 

8, and section 161 of the Act with respect to the following: 

A. Byproduct material as defined in section lle.(1) of the Act; 

B. Source material; 

C. Special nuclear materials in quantities not sufficient to form a 

critical mass; and 

D. The land disposal of source, byproduct and special nuclear material 

received from other persons. 
Article II 

The Agreement does not provide for discontinuance of any authority 

and the Commission shall retain authority and responsibility with respect to 

regulation of: 

A. The construction and operation of any production or utilization 

facility; 

B. The export from or import into the United States of byproduct, 

source, or special nuclear material, or of any production or utilization facility; 

C. The disposal into the ocean or sea of byproduct, source or special 

nuclear waste materials as defined in regulations or orders of the 

Commission; 

D. The disposal of such other byproduct source, or special nuclear 

material as the Commission from time to time determines by regulation or 

order should, because of the hazards or potential hazards thereof, not be so 

disposed of without a license from the Commission and; 

E. The extraction or concentration of source material from source 

material ore and the management and disposal of the resulting byproduct. 

Article III 

This Agreement may be amended, upon completion by the State and 

approval by the Commission, to include the additional area discussed in 

Article II, paragraph E, whereby the State can exert regulatory control over 

the materials stated therein. 
Article IV 

Notwithstanding this Agreement, the Commission may from time to 

time by rule; regulation or order, require that the manufacturer, processor, or 

producer of any equipment, device, commodity, or other product containing 

source, byproduct or special nuclear material shall not transfer possession or 

control of such product except pursuant to a license or an exemption from 

licensing issued by the Commissioner. 

Article V 

This Agreement shall not affect the authority of the Commission under 

subsection 161 b. or i. of the Act to issue rules, regulations or orders to 

protect the common defense and security; to protect restricted data or to 

guard against the loss or diversion of special nuclear material. 

Article VI 

The Commission will use its best efforts to cooperate with the State 

and other Agreement States in the formulation of standards and regulatory 

programs of the State and the Commission for protection against hazards of 

radiation and to assure that State and Commission programs for protection 

against hazards of radiation will be coordinated and compatible. The State 

will use its best efforts to cooperate with the Commission and other 

Agreement States in the formulation of standards and regulatory programs of 

the State and the Commission for protection against hazards of radiation and 

to assure that the State's program will continue to be compatible with the 

program of the Commission for the regulation of like materials. The State and 

the Commission will use their best efforts to keep each other informed of 
proposed changes in their respective rules and regulations and licensing, 

inspection and enforcement policies and criteria, and to obtain the comments 

and assistants of the other party thereon. 

Article VII 

The Commission and the State agree that it is desirable to provide 

reciprocal recognition of licenses for the materials listed in Article I licensed 

by the other party or by any Agreement State. Accordingly, the Commission 

and the State agree to use their best efforts to develop appropriate rules, 

regulations and procedure, by which such reciprocity will be accorded. 

Article VIII 

The Commission, upon its own initiative after reasonable notice and 

opportunity for hearing to the States or upon request of the Governor of the 

State, may terminate or suspend all or part of this agreement and, reassert the 

licensing and regulatory authority vested in it under the Act if the 

Commission finds that (1) such termination or suspension is required to 

protect the public health and safety, or (2) the State has not complied with 

one or more of the requirements of section 274 of the Act. The Commission 

may also, pursuant to section 274j of the Act, temporarily suspend all or part 

of this Agreement if in the judgment of the Commission an emergency 

situation exists requiring immediate action to protect public health and safety 

and the Sate has failed to take necessary steps. The Commission shall 

periodically review this Agreement and actions taken by the State under this 

Agreement to ensure compliance with section 274 of the Act. 
Article IX 

This Agreement shall become effective on June 1, 1987, and shall 

remain in effect unless and until such time as it is terminated pursuant to 

Article VII. 

Done at Washington, DC, in triplicate this 14th day of May, 1987. 

For the United States Nuclear Regulatory Commission. 

Lando W. Zech, Jr, 

Chairman. 

Done at Springfield Illinois, in triplicate, this 18th day of May, 1987. 

For the State of Illinois. 

James R Thompson, 

Governor. 

Order To Protect the Common Defense and Security 

I 

Allied-Chemical Corporation, Metropolis, Illinois, (the “licensee”) is 

the holder of License No. SUB-526 (the “licensee”) issued by the Nuclear 

Regulatory Commission (the "Commission" or "NRC') which authorize, the 

licensee to use source material in a UP5 conversion plant in Metropolis, 

Illinois. The license was last issued on May 28, 1985 and will expire on June 

1, 1980 (Docket No.0400-3392). 

II 

In a letter dated October 2, 1986, Governor James P. Thompson of the 

State of Illinois requested that the Commission enter into an Agreement with 

the State of Illinois requested that the Commission enter into an Agreement 

with the State pursuant to section 274 of the Atomic Energy Act, as amended. 

The specific authority requested includes the category, source material. An 
NRC staff assessment and the proposed agreement were published is the 

Federal Register for public comment (52 FR 2309, 2988, 3503, and 4436; 

correction notice at 52 FR 4569). The staff assessment noted that with respect 

to the Allied Chemical plant, the Commission was considering whether 

continued NRC regulation was necessary in the interest of the common 

defense and security of the United States: 

III 

In a letter dated November 17, 1986, the Department of Energy, 

("DOE") commenting to NRC on the matter of the proposed inclusion of the 

NRC license to Allied Chemical among the category of source material 

licenses to be transferred to Illinois under a section 274b Agreement, stated 

that the combination of the commercially operated uranium conversion 

facilities in the U.S. and the DOE operated enrichment facilities represent a 

complex that is an important national asset essential to maintaining the 

common defense and security of the United States. DOE further expressed 

the view that, "it would be prudent for NRC to retain its existing regulatory 

authority over uranium conversion facilities consistent with its charter to 

regulate facilities whose operation is in the national interest." 

IV 

Upon consideration of these facts, the Commission has determined that 

regulation of the Allied-Chemical conversion plant in Metropolis should be 

continued under NRC jurisdiction, to protect the common defense and 

security. 
V 

In view of the foregoing and pursuant to sections 161b and 274m of the 

Atomic Energy Act, as amended, 42 U.S.C. 2201(b), 2021(m). It is hereby 

ordered effective immediately, that: 

a. Notwithstanding the provisions of a section 274b Agreement with 

the State of Illinois as approved by the Commission the NRC jurisdiction 

over the possession and use of source material by Allied Chemical 

(license SUB-526) shall be retained by the NRC, and 

b. NRC jurisdiction over the license shall remain in effect during the 

term of such section 274b Agreement unless the Commission shall determine 

that continued regulation by NRC is no longer needed to assure the protection 

of the common defense and security of the United States. 

Any person whose interest may be adversely affected by this order may 

within 30 days of the date of this order file written comments with supporting 

analysis with the Secretary of the Commission explaining why this order 

should not have been issued. The Commission will consider any comments 

that are filed with a view to possible modification or rescission of the order. 

The filing of any comments does not stay the effectiveness of this order. 

Commissioner Asselstine disapproved this Order. 

Dated at Washington, DC this 14th day of May, 1987. 

For the United States Nuclear Regulatory Commission. 

Samuel J. Chilk, 

Secretary, Office of the Secretary of the Commission. 

Dated at Washington, DC this 9th day of June, 1987. 
For the United States Nuclear Regulatory Commission. 

Harold R Denton,

Director, Office of Governmental and Public Affairs.

(FR Doc. 87-13729, Filed 8-15-87: 8:45 am)