FINAL BILL REPORT

HB 843

                                  C 184 L 87

BYRepresentatives Armstrong and Nelson

Changing provisions relating to the collection of charges for the radiation perpetual maintenance fund.

House Committe on Energy & Utilities

Senate Committee on Energy & Utilities

SYNOPSIS AS ENACTED

BACKGROUND:

In 1979, the legislature established a "radiation perpetual maintenance fund" to provide money to decommission and maintain necessary surveillance of uranium mill facilities so that the public health and environment would be protected.  The money was to come from the uranium mill operators.  Mill operators were also required to provide a bond to help cover the cost of decommissioning and surveillance.  Estimated closure costs at the time the fund was established were about $500,000 per site. Thus, a cap of $1,000,000 was placed on the amount of money which could be collected for the fund.  The three uranium mill operators that have mines in this state have now ceased operations because of depressed uranium markets.  Decommissioning costs for each of the sites is now estimated to be several millions of dollars.  The bonding company of one operator is bankrupt, as is the operator itself.  Collection efforts have been hampered by constraints in existing state law.  If collection does not occur, the state may have to fund the actions necessary to protect the public health and environment.

SUMMARY:

The ability of the state to collect money from mill operators for decommissioning and maintaining necessary surveillance of uranium mining operations is enhanced in several ways:  1) the ceiling of $1,000,000 on collections is removed;  2) the Department of Social and Health Services is expressly authorized to collect money needed for health and environmental monitoring and protection at the time mining operations cease; 3) a statutory priority lien is established on all real and personal property owned by the uranium mill operator for money owed; 4) the attorney general is directed to use all available means to enforce collection of money owed; and 5) bonds are to be provided for all nongovernmental operators in sufficient amounts and only by bonding companies approved by the state finance commission.

VOTES ON FINAL PASSAGE:

      House 96   0

      Senate    49     0

EFFECTIVE:July 26, 1987