NRC NEWS

U.S. NUCLEAR REGULATORY COMMISSION

Office of Public Affairs Telephone: 301/415-8200

Washington, DC 20555-001 E-mail: opa@nrc.gov

Web Site: http://www.nrc.gov/OPA

No. 00-053 March 27, 2000

NOTE TO EDITORS: LETTER TO OWNER OF ENVIROCARE OF UTAH

The Nuclear Regulatory Commission staff has completed its evaluation of the responses of

Khosrow B. Semnani, owner of Envirocare of Utah, to a Demand for Information the NRC issued to

Mr. Semnani last July and a Request for Additional Information issued in November. The staff has

concluded that no further action is warranted.

A copy of the staff’s letter to Mr. Semnani conveying this information is attached.

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United States

NUCLEAR REGULATORY COMMISSION

Washington, D.C. 20555-0001

March 27, 2000

EA99-180

Mr. Khosrow B. Semnani

Envirocare of Utah, Inc.

46 West Broadway

Suite 116

Salt Lake City, UT 84101

SUBJECT: EVALUATION OF RESPONSES TO DEMAND FOR INFORMATION AND

CLOSURE OF ENFORCEMENT CONSIDERATIONS

Dear Mr. Semnani:

On July 12, 1999, the U.S. Nuclear Regulatory Commission (NRC) issued a Demand for Information

(DFI) to you concerning your payment of money and other value to Mr. Larry F. Anderson, a former

Director of the State of Utah Bureau of Radiation Control. The DFI was issued to resolve the NRC’s

concerns about your payment to a State of Utah official in connection with a license application by

Envirocare of Utah, Inc. (Envirocare). Envirocare is owned by you and is a licensee of the State of

Utah, under an Agreement State Program pursuant to Section 274 of the Atomic Energy Act. The

NRC was concerned that your payments to a State official with official responsibilities over matters

integrally related to the NRC’s regulatory program could undermine the NRC’s reasonable assurance

of adequate protection of the public health and safety, if you were to continue participating in NRClicensed activities at Envirocare or elsewhere. The DFI was also issued in response to the Section

2.206 of Title 10 of the U.S. Code of Federal Regulations (10 CFR §2.206) petition filed on December

30, 1998, by the Natural Resources Defense Council, addressing the same matter. You responded to

the petition on January 12, 1999, and, more fully, on April 5, 1999. You responded to the DFI on

September 13, 1999. On November 4, 1999, the NRC issued a Request for Additional Information

(RAI) regarding certain information in your response to the DFI. You responded to that request on

November 19, 1999.

The NRC has completed its evaluation of your responses to the NRC’s DFI and RAI, as well as all

available related information, and has concluded that no further action is warranted. In reaching this

conclusion, we wish to emphasize the significance of your assurances that you...“understand what is

required and expected of individuals involved in the management of NRC-licensed activities...that the

NRC must rely on the candor and integrity of those individuals,

and that the issuance of an NRC license is a privilege to be entrusted to persons who will work

diligently to ensure the safety of the public and workers and to ensure compliance with NRC
K. Semnani -2-

requirements.” See “Khosrow B. Semnani Response to NRC Demand for Information,” September 13,

1999, at 2.

Should you have any questions concerning this letter, please contact me at (301)415-2741.

Sincerely,

s

R. W. Borchardt, Director

Office of Enforcement

Docket No. 40-8989

License No. SMC-1559

cc: C. Judd, President, Envirocare of

Utah

W. Sinclair, Director, Utah Division

Of Radiation Control

T. Cochran, Natural Resources

Defense Council

D. Shapiro, Morgan, Lewis & Bockius

T. Brown, EPA, Region 8, Denver, CO