ML111290381 

UNITED STATES 

U.S. NUCLEAR REGULATORY COMMISSION 

OFFICE OF FEDERAL AND STATE MATERIALS 

AND ENVIRONMENTAL MANAGEMENT PROGRAMS 

WASHINGTON, D.C. 20555 

September 29, 2011 

NRC REGULATORY ISSUE SUMMARY 2011-11 

REGARDING LONG-TERM SURVEILLANCE CHARGE FOR 

CONVENTIONAL OR HEAP LEACH URANIUM RECOVERY FACILITIES 

LICENSED UNDER 10 CFR PART 40 

ADDRESSEES 

All holders of operating licenses for conventional or heap leach uranium recovery facilities, 

holders of licenses for conventional or heap leach uranium recovery facilities in 

decommissioning, companies that have submitted applications to construct new conventional or 

heap leach uranium recovery facilities or letters of intent to submit such applications, UMTRCA 

Title II sites, Agreement State Radiation Control Program Directors, and State Liaison Officers. 

INTENT

The U.S. Nuclear Regulatory Commission (NRC) is issuing this Regulatory Issue Summary 

(RIS) to reiterate its policy regarding the Long-Term Surveillance Charge (LTSC) for applicable 

uranium recovery facilities. This RIS discusses existing NRC policy regarding the scope and 

corresponding dollar amount of the LTSC to be paid to the general treasury of the United 

States, or to an appropriate State agency, prior to the transfer of title to the long-term custodian 

for long-term care and license termination. It also further clarifies matters discussed in an NRC 

letter to the U.S. Department of Energy (DOE) dated June 17, 2010, regarding increases in the 

LTSC (Agencywide Documents Access and Management System (ADAMS) accession number 

ML100670337). No specific action or written response is required. 

BACKGROUND

Both conventional and heap leach uranium milling processes generate mill tailings, which are 

primarily a sandy waste material containing the radioactive decay products from the uranium 

chains (mainly the Uranium-238 chain) and heavy metals. During operations, the tailings are 

deposited in a tailings impoundment or disposal cell. The goal of the tailings impoundment or 

disposal cell is to provide long-term protection of human health and safety, to protect the 

environment, and to isolate the tailings without ongoing maintenance. Specifically, Criterion 1 to 

Appendix A of Title 10 of the Code of Federal Regulations (CFR), Part 40 (10 CFR Part 40) 

states: 
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The general goal or broad objective in siting and design decisions is permanent 

isolation of tailings and associated contaminants by minimizing disturbance and 

dispersion by natural forces, and to do so without ongoing maintenance. 

Criterion 6 to Appendix A of 10 CFR Part 40 states that licensees are required to place a cover 

over the tailings or wastes “which provides reasonable assurance of control of radiological 

hazards...for 1,000 years, to the extent reasonably achievable, and, in any case, for at least 

200 years.” 

 

Prior to license termination, a Long-Term Surveillance Plan (LTSP) is submitted to NRC for 

review. According to 10 CFR 40.28(b)(2) and (b)(3), cited below, groundwater monitoring must 

be considered in the LTSP: 

(b)(2) A detailed description, which can be in the form of a reference of the final 

disposal site conditions, including existing ground water characterization. This 

description must be detailed enough so that future inspectors will have a baseline 

to determine changes to the site and when these changes are serious enough to 

require maintenance or repairs; 

(b)(3) A description of the long-term surveillance program, including proposed 

inspection frequency and reporting to the Commission (as specified in appendix 

A, Criterion 12 of this part), frequency and extent of ground water monitoring if 

required, appropriate constituent concentration limits for ground water, inspection 

personnel qualifications, inspection procedures, recordkeeping and quality 

assurance procedures[.] (Emphasis added). 

Additionally, prior to license termination, all operators of uranium mills are required to pay an 

appropriate LTSC to the general treasury of the United States, or the appropriate State agency, 

as stated in the following excerpt from Criterion 10 to Appendix A of 10 CFR Part 40: 

A minimum charge of $250,000 (1978 dollars) to cover the costs of long-term 

surveillance must be paid by each mill operator to the general treasury of the 

United States or to an appropriate State agency prior to the termination of a 

uranium or thorium mill license. 

The LTSC is a one-time charge, in an amount such that an assumed 1 percent annual real 

interest rate would provide interest income sufficient to cover the annual costs of site 

surveillance incurred by the long-term custodian. Specifically, the intent of the minimum LTSC 

is to cover costs of a “passive monitoring” approach to site surveillance, whose assumptions are 

described in NUREG-0706, Vol. I, “Final Generic Environmental Impact Statement of Uranium 

Milling Project M-25,” dated September 1980 (ADAMS accession number ML032751663); 

Appendix R, “Costs of Post-Operational Site Surveillance” of NUREG-0706, Vol. III, “Final 

Generic Environmental Impact Statement of Uranium Milling Project M-25 – Appendices G-V,” 

dated September 1980 (ADAMS accession number ML032751669); and “[NRC] Staff Guidance 

on the License Termination Process for Conventional Uranium Mill Licensees,” dated November 

27, 1996 (ADAMS accession number ML100840671). 
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Recently, the U.S. Department of Energy (DOE) raised an issue to the NRC regarding the 

minimum LTSC amount required by the NRC’s regulations. Specifically, DOE inquired as to 

what long-term care activities would merit an increase in the LTSC above the minimum amount. 

DOE stated that, based on actual costs of site surveillance and control activities, the minimum 

amount paid as the LTSC may not be sufficient to cover the costs for the needed site 

surveillance and control activities, in certain cases. For instance, sites with alternate 

concentration limits (ACLs) may require increased groundwater monitoring not covered by the 

“passive monitoring” approach assumed in the development of the minimum LTSC. 

SUMMARY OF ISSUE 

Pursuant to Criterion 10 to Appendix A of 10 CFR Part 40, an increase in the LTSC above the 

minimum amount is within NRC’s regulatory authority: 

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 Criterion 12...variance in funding requirements may be specified by 

the Commission. (Emphasis added). 

The NRC’s position on the LTSC – described in “[NRC] Staff Guidance on the License 

Termination Process for Conventional Uranium Mill Licensees,” (ADAMS accession number 

ML100840671) – is well established and goes back over 14 years. Escalation of the LTSC is 

consistent with NRC’s historical practice. The LTSC of the Atlantic Richfield Company’s 

(ARCO’s) Bluewater Uranium Mill and Tailings site was escalated for sampling of groundwater 

(ADAMS accession number ML103410026). At the Sohio Western Mining Company’s L-Bar 

uranium mill tailings site, the LTSC was escalated for the maintenance required to address 

future accumulation of sedimentation in the diversion channels (ADAMS accession numbers 

ML042580467 and ML042580457). 

If site surveillance or control requirements are expected to be greater than those specified in 

Criterion 12 to Appendix A of 10 CFR Part 40 and provided that there is a nexus to radiological 

health and safety, the NRC may consider increasing the LTSC above the minimum amount, 

adjusted to current year dollars. The increase in the LTSC would cover those additional 

expected long-term surveillance and control activities relied on for the performance of the 

tailings impoundment. The NRC may consider increasing the LTSC for long-term maintenance 

and control activities undertaken to ensure maintenance of radiological health and safety such 

as, but not limited to: (1) groundwater monitoring; (2), rip-rap, erosion or other cover repair; (3) 

fencing; and (4) vegetation control 

The custodial agency or the applicant/licensee may propose to increase the LTSC above the 

minimum amount to cover those additional expected long-term surveillance and control 

activities, including groundwater monitoring, that the custodial agency or the applicant/licensee 

deems necessary for the performance of the tailings impoundment. Along with an overall 

bottom-line amount corresponding to the proposed LTSC, the following, at a minimum, should 

be provided as a basis for increasing the LTSC above the minimum: (1) the scope of each 

additional long-term surveillance and control activity, together with a justification for its inclusion, 

and an explanation of its connection to radiological health and safety; (2) specifically with 

respect to groundwater monitoring, the frequency and duration of monitoring, number of wells 
RIS 2011-11 

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monitored, and constituents analyzed; and (3) a site specific cost estimate with a basis (e.g., 

unit costs, and source of costs). 

Consistent with past practice, on a site-specific basis, NRC staff will continue to work with the 

custodial agency and the licensee to address the LTSC, with any final variances in the funding 

requirements to be determined solely by the NRC. It is recommended that the licensee, the 

custodial agency, and the NRC staff meet prior to the submittal of the LTSP to discuss the 

scope of the LTSP and the LTSC. 

After the meeting or as soon as possible if no meeting is held, the custodial agency should 

prepare and submit its LTSP. If the custodial agency desires to include commitments that 

would increase the LTSC above the minimum, the custodial agency should provide the basis as 

discussed above to support its request for an increased LTSC. If the custodial agency desires 

to have commitments in the LTSP that exceed the requirements set forth in Appendix A of 10 

CFR Part 40 and do not have a nexus to radiological health and safety (e.g., fencing that is not 

necessary to ensure maintenance of radiological health and safety), the custodial agency would 

solely be responsible for funding such commitments. It is anticipated that the groundwater 

monitoring for long term surveillance and control may differ from the licensee’s existing 

program. The licensee is required to continue its existing groundwater monitoring program, in 

accordance with its license requirements, until its license is terminated. The LTSP will define 

the specific long term groundwater monitoring program, and it is the responsibility of the long 

term custodian to implement the long term groundwater monitoring program, if any, as 

described in the LTSP. Consistent with Criterion 10 to Appendix A of 10 CFR Part 40, any final 

variances in the LTSC will be determined solely by the NRC. 

As part of its demonstration that sufficient financial resources for decommissioning, 

decontamination, reclamation, and long term surveillance and control are available when 

needed, licensees should clearly address the LTSC as part of their annual update to the 

financial assurance instrument(s) and cost estimate. New license applicants should also 

address and justify the LTSC as part of their license application and/or initial cost estimate and 

financial assurance instrument(s) provided prior to operations. The applicant/licensee should 

consider all activities for site surveillance and control as specified in Criterion 12 to Appendix A 

of 10 CFR 40, including groundwater monitoring. The cost estimates should contain a detailed 

basis (e.g., unit costs and their source) and justification for the LTSC calculated by the 

applicant/licensee. If the applicant/licensee expects long term surveillance or control 

requirements, including groundwater monitoring, to be greater than those specified in Criterion 

12 to Appendix A of 10 CFR 40, the applicant/licensee should provide the basis as discussed 

above to support its calculation for an increased LSTC. 

FEDERAL REGISTER NOTIFICATION 

A notice of opportunity for public comment on this RIS was published in the Federal Register

(76 FR 18807) on April 5, 2011, for a 30 day comment period. Comments were received and 

considered in finalizing this RIS. 
RIS 2011-11 

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CONGRESSIONAL REVIEW ACT 

This RIS is not a rule as designated in the Congressional Review Act (5 U.S.C. §§ 801-886) 

and, therefore, is not subject to the Act. 

PAPERWORK REDUCTION ACT STATEMENT 

This RIS contains and references information collection requirements that are subject to the 

Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.). Existing information collection 

requirements were approved by the Office of Management and Budget, approval number 

3150-0020. 

PUBLIC PROTECTION NOTIFICATION 

The NRC may not conduct or sponsor, and a person is not required to respond to, a request for 

information or an information collection requirement unless the requesting document displays a 

currently valid OMB control number. 
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CONTACT 

This RIS requires no specific action or written response. If you have any questions about this 

summary, please contact the technical contact listed below. 

 /RA/ 

 Larry W. Camper, Director 

 Division of Waste Management 

 and Environmental Protection 

 Office of Federal and State Materials 

 and Environmental Management Programs 

Technical Contact: Roman A. Przygodzki, DWMEP/SPB 

 (301) 415-5143 

 E-mail: roman.przygodzki@nrc.gov

Enclosures: 

1. Recently Issued FSME Generic Communications 

2. Staff’s Evaluation of Comments
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Page 6 of 6 

CONTACT 

 

This RIS requires no specific action or written response. If you have any questions about this 

summary, please contact the technical contact listed below. 

 /RA/ 

 Larry W. Camper, Director 

 Division of Waste Management 

 and Environmental Protection 

 Office of Federal and State Materials 

 and Environmental Management Programs 

Technical Contact: Roman A. Przygodzki, DWMEP/SPB 

 (301) 415-5143 

 E-mail: roman.przygodzki@nrc.gov

Enclosures: 

1. Recently Issued FSME Generic Communications 

2. Staff’s Evaluation of Comments 

ML111290381 

Office DWMEP DMSSA FSME DWMEP DWMEP OGC 

Name RPrzygodzki DSollenberger AMcIntosh SAchten LChang PHirsh 

(via email) 

Date 5/9/11 5/10/11 5/12/11 05/12/11 6/6/11 6/17/11 

Office OGC DWMEP OIS OE DWMEP 

Name BJones 

(via email) 

KMcConnell TDonnell 

(via email) 

LSreenivas LCamper 

Date 6/21/11 6/23/11 6/30/11 7/8/11 09/29 /11 / / 

OFFICIAL RECORD COPY
RIS 2011-11 

Enclosure 1 

Page 1 of 2

List of Recently Issued Office of Federal and State Material 

and Environmental Management Programs Generic Communications 

Date GC No. Subject Addressees 

11/19/2010 IN-2010-24 Notice of Possible Source Leakage 

During Non-Routine Maintenance on a 

Gammacell 40 Irradiator 

All academic Type A broad scope licensees; all 

medical institutions; all self shielded irradiators 

less than or equal to 10,000 cues licensees; all 

Radiation Control Program Directors and State 

Liaison Officers. 

04/27/2011 IN-2011-11 Reporting Requirement for Heat and 

Smoke Detector Failures in 10 CFR Part 

36 Irradiators 

All holders of irradiator licenses issued by the 

U.S. Nuclear Regulatory Commission under to 

Title 10 of the Code of Federal Regulations (10 

CFR), Part 36, “Licensees and Radiation Safety 

Requirements for Irradiators;” Agreement State 

Radiation Control Program Directors and State 

Liaison Officers 

01/21/10 RIS-2010-02 The Global Threat Reduction Initiative 

(GTRI) 

Federally Funded Voluntary Security 

Enhancements for High-Risk 

Radiological Material 

All holders of operating licenses for nuclear 

power reactors and research and test reactors 

under the provisions of Title 10 of the Code of 

Federal Regulations (10 CFR) Part 50, 

“Domestic Licensing of Production and 

Utilization Facilities,” except those that have 

ceased operations and have certified that fuel 

has been permanently removed from the reactor 

vessel and have no spent fuel stored on-site. All 

U.S. Nuclear Regulatory Commission (NRC) fuel 

cycle facilities licensed under 10 CFR Part 40, 

“Domestic Licensing of Source Material” or 10 

CFR Part 70, “Domestic Licensing of 

Special Nuclear Material” and gaseous diffusion 

plants certified under 10 CFR Part 76, 

“Certification of Gaseous Diffusion Plants.” 

All holders of site-specific licenses for 

independent spent fuel storage installations 

(ISFSIs) under the provisions of 10 CFR Part 72, 

“Licensing Requirements for the Independent 

Storage of Spent Nuclear Fuel, High-level 

Radioactive Waste, and Reactor-related Greater 

than Class C Waste,” and all holders of 10 CFR 

Part 50 licenses with ISFSIs under the general 

license provisions of 10 CFR Part 72. All NRC 

materials licensees authorized to possess 

Category 1 or Category 2 quantities of 

radioactive materials, under the provisions of 10 

CFR Parts 30, “Rules of General Applicability to 

Domestic Licensing of Byproduct Material,” 40, 

and 70. 
RIS 2011-11 

Enclosure 1 

Page 2 of 2

List of Recently Issued Office of Federal and State Material 

and Environmental Management Programs Generic Communications 

Date GC No. Subject Addressees 

05/25/10 RIS-2010-04 Monitoring the Status of Regulated 

Activities 

During a Pandemic 

All holders of operating licenses for nuclear 

power reactors and research and test reactors 

under the provisions of Title 10 of the Code of 

Federal Regulations (10 CFR) Part 50, 

“Domestic Licensing of Production and 

Utilization Facilities,” except those that have 

ceased operations and have certified that fuel 

has been permanently removed from the reactor 

vessel and have no spent fuel stored on-site. All 

U.S. Nuclear Regulatory Commission (NRC) fuel 

cycle facilities licensed under 10 CFR Part 40, 

“Domestic Licensing of Source Material” or 10 

CFR Part 70, “Domestic Licensing of Special 

Nuclear Material” and gaseous diffusion plants 

certified under 10 CFR Part 76, “Certification of 

Gaseous Diffusion Plants.” All holders of sitespecific licenses for independent spent fuel 

storage installations (ISFSIs) under the 

provisions of 10 CFR Part 72, “Licensing 

Requirements for the Independent Storage of 

Spent Nuclear Fuel, High-level Radioactive 

Waste, and Reactor-related Greater than Class 

C Waste,” and all holders of 10 CFR Part 50 

licenses with ISFSIs under the general license 

provisions of 10 CFR Part 72. All NRC materials 

licensees authorized to possess Category 1 or 

Category 2 quantities of radioactive materials, 

under the provisions of 10 CFR Parts 30, “Rules 

of General Applicability to Domestic Licensing of 

Byproduct Material,” 40, and 70.

09/10/10 RIS-2010-09 Radiation Safety Officers For MedicalUse Licenses Under 10 CFR Part 35 

All U.S. Nuclear Regulatory Commission (NRC) 

medical-use licensees, NRC master material 

licensees, Agreement State Radiation Control 

Program Directors, and State Liaison Officers.

01/25/11 RIS-2011-01 NRC Policy On Release Of Iodine-131 

Therapy Patients Under 10 CFR 35.75 

To Locations Other Than Private 

Residences 

All U.S. Nuclear Regulatory Commission (NRC) 

medical-use licensees, NRC master material 

licensees, Agreement State Radiation Control 

Program Directors, and State Liaison Officers.

Note: This list contains the six most recently issued generic communications, issued by the Office of Federal and State Materials 

and Environmental Management Programs (FSME). A full listing of all generic communications may be viewed at the NRC public 

website at the following address: http://www.nrc.gov/reading-rm/doc-collections/gen-comm/index.html
STAFF EVALUATION OF PUBLIC COMMENTS RECEIVED ON PROPOSED GENERIC COMMUNICA

REGULATORY ISSUE SUMMARY 2011-XX, “LICENSEE JUSTIFICATION OF LONG-TERM SURVEILLA

(76 FR 18807) 

No. Subject Comments and Associated Commenters Response

1a Groundwater monitoring 

during long-term surveillance and control 

The U.S. Department of Energy (DOE) stated that groundwater monitoring may also be required to comply with Title 40 of the Code of Federal Regulations Part 192.03, “Monitoring,” and may need to be reflected in the long-term surveillance charge. Thomas C. Pauling, Director, Office of Site Operations, Office of Legacy Management, U.S. Department of Energy. 

The NRC staff finds tpertain to monitoring termination and translong term custodian. might be considered long-term surveillance The RIS is modified to licensee, NRC and thmeet prior to creation Surveillance Plan (LTthis meeting would be of the LTSP, including monitoring. Groundwhave a nexus to radiosafety. Additionally, the RIS that the LTSP clearly groundwater monitorisurveillance and contfrequency and durationumber of wells monianalyzed, and a cost 
No. Subject Comments and Associated Commenters Response1b Groundwater monitoring 

during long-term surveillance and control 

DOE states that NUREG-0706, Appendix R, Scenario II is the most applicable cost model for calculating long-term surveillance charge for sites with a continuing groundwater monitoring program. Thomas C. Pauling, Director, Office of Site Operations, Office of Legacy Management, U.S. Department of Energy. 

The NRC staff agrees might be applicable to However, 10 CFR PaCriterion 10 states thaor control requiremenare determined, on thspecific evaluation, to greater than those sp12...variance in fundibe specific by the [NRon a site specific basSurveillance Charge increased above the specified in Criterion specific nature of the given site that needs monitoring program mthan the Scenario II cNUREG-0706, Appengroundwater monitorinot be necessary in aas described in the drcustodial agency seeLTSC above the minidetailed basis must b
No. Subject Comments and Associated Commenters Response2 Groundwater monitoring 

during long-term surveillance and control 

DOE states that the RIS does not address an estimate of the duration of required groundwater monitoring, and expects that monitoring will be required for a longer period than had been anticipated previously. Thomas C. Pauling, Director, Office of Site Operations, Office of Legacy Management, U.S. Department of Energy. 

As discussed in Comcreation of the LTSP, recommend that the llong term custodian dthe LTSP and activitiesurveillance and contan increase in the LTgroundwater monitoriThe draft RIS requestlicense applicants spebasis, the number of the frequency of samsampling; and the conduring long-term site control. However, the that the RIS does not custodial agency may measures. The final term custodian to pronecessary during longand control, including monitoring, and cost o
No. Subject Comments and Associated Commenters Response3 Consistency with 

regulations and guidance 

DOE states that it finds no inconsistency in the regulations and guidance, including the draft RIS, pertaining to criteria for assessing the LTSC. DOE also states that it contends the draft RIS is also consistent with the 1998 “License Termination/Site Transfer Protocol between the U.S. Department of Energy and the U.S. Nuclear Regulatory Commission” Thomas C. Pauling, Director, Office of Site Operations, Office of Legacy Management, U.S. Department of Energy. 

The NRC staff agrees No changes to the fin
No. Subject Comments and Associated Commenters Response4 Groundwater monitoring 

during long-term surveillance and control 

DOE states that it generally expects to continue the groundwater monitoring program implemented by the licensee, and states that it understands the monitoring program may also be modified through development and acceptance of the LTSP. DOE also states that it agrees with the RIS language that indicates the licensee should implement the groundwater program that will carry over to the monitoring program that DOE will implement. Thomas C. Pauling, Director, Office of Site Operations, Office of Legacy Management, U.S. Department of Energy. 

The NRC staff wants does not suggest that be required to change monitoring program in LTSP. The reference40.28(b)(2) and (b)(3considering groundwaLTSP. If the custodial agencchanges to the grounprogram should be imterm surveillance, it sin the LTSP, including duration of monitoringsampled, and constitugroundwater monitorisurveillance and contnexus to radiological The final RIS states tshould continue its exmonitoring program, ulicense amendment, utermination. The finait is the responsibility custodian to implememonitoring program, ithe LTSP. 
No. Subject Comments and Associated Commenters Response5 Vegetation control DOE recommended that the need for vegetation 

control should be based, in part, on considering the long-term effect of the climax plant community on disposal cell performance rather than considering the need for vegetation control only at the time of transition. Thomas C. Pauling, Director, Office of Site Operations, Office of Legacy Management, U.S. Department of Energy. 

If the long-term custodemonstrates that futwill have an adverse performance, the NRincreasing the LTSC. needed to the final RI

6 Control of noxious and 

invasive weeds 

DOE states that as long term custodian of certain sties, it may incur additional costs related to activities such as the control of noxious and invasive weeds. DOE acknowledges the NRC’s position that the longterm surveillance charge will reflect only those costs having a nexus to radiological health and safety. Thomas C. Pauling, Director, Office of Site Operations, Office of Legacy Management, U.S. Department of Energy. 

The NRC staff agrees be increased for costs noxious and invasive there is a nexus to rasafety, e.g., the roots invasive weeds are ethe radon barrier or oaffect the performanc
No. Subject Comments and Associated Commenters Response7 Site specific basis for the 

LTSC 

DOE states that it will submit to NRC, on a site-bysite basis, the rationale for suggesting that a given scenario is the appropriate model for determining the LTSC. Thomas C. Pauling, Director, Office of Site Operations, Office of Legacy Management, U.S. Department of Energy. 

Given the site-specifia detailed basis would support an increase iminimum amount. Thactivities that may meLTSC must be fully coestimated costs for sumerit an LTSC that is the cost scenario (Scsuggested by the long For example, if it is aggroundwater monitorilong term surveillance maximum Scenario II necessarily apply. Wgroundwater monitoriincrease in the LTSC items such as the freqof sampling, number constituents analyzedactivities that may meLTSC must be fully coThe final RIS is reviseComment 2: it requecustodian to propose necessary during longand control, including monitoring, and cost o