HOUSE BILL REPORT

HB 843

BYRepresentatives Armstrong and Nelson

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

House Committe on Energy & Utilities

Majority Report:     Do pass.  (15)

     Signed by Representatives Nelson, Chair; Todd, Vice Chair; Armstrong, Barnes, Brooks, Gallagher, Hankins, Jacobsen, Jesernig, Madsen, May, Miller, Sutherland, Unsoeld and S. Wilson.

House Staff:Fred Adair (786-7113) and Ted Hunter (786-7114)

AS PASSED HOUSE MARCH 9, 1987

BACKGROUND:

In 1979, the Legislature established a "radiation perpetual maintenance fund" to provide monies to decommission and maintain necessary surveillance of uranium mill facilities so that the public health and environment would be protected.  The monies were to come from the uranium mill operators.  In the event the mill operator was not able to provide the funds, a bond was required to be provided.  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 which 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 in the 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 general fund might need to be tapped to fund the actions necessary to protect public health and environment.

SUMMARY:

The ability of the state to collect money for decommissioning and maintaining necessary surveillance of uranium mining operations from the operator 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 only by bonding companies approved by the state finance commission.

Fiscal Note:    Not Requested.

House Committee ‑ Testified For:     Nancy Kirner, Department of Social and Health Services.

House Committee - Testified Against: None Presented.

House Committee - Testimony For:     Provisions in this bill will make it more likely that uranium mill tailings piles will be properly secured and have necessary surveillance.

House Committee - Testimony Against: None Presented.