SENATE 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

Senate Committee on Energy & Utilities

Senate Hearing Date(s):March 24, 1987

Majority Report:     Do pass.

     Signed by Senators Williams, Chairman; Owen, Vice Chairman; Benitz, Cantu, Nelson, Smitherman.

Senate Staff:Paul Parker (786-7455); Glenn Blackmon (786-7455)

                March 24, 1987

AS REPORTED BY COMMITTEE ON ENERGY & UTILITIES, MARCH 24, 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 Department of Social and Health Services shall require a uranium mill licensee to post a bond issued by a bonding company approved by the State Finance Commission.  The amount of the bond shall be sufficient to pay costs of reclamation and perpetual maintenance.

Collection efforts are enhanced by removing the $1,000,000 ceiling on collections and by authorizing DSHS to collect from a licensee any additional funds needed for health and environmental monitoring and protection at the time mining operations cease. If the licensee fails to pay DSHS the money owed within a reasonable time, the state may establish a priority lien on all real and personal property of the uranium mill operator.  The Attorney General is directed to use all available means to enforce collection of money owed.

Fiscal Note:    none requested

Senate Committee - Testified:   Representative Seth Armstrong