State of Ohio: NRC Staff Assessment of a Proposed Agreement Between the Nuclear Regulatory Commission and the State of Ohio

NUCLEAR REGULATORY COMMISSION

State of Ohio: NRC Staff Assessment of a Proposed Agreement

Between the Nuclear Regulatory Commission and the State of Ohio

AGENCY: Nuclear Regulatory Commission.

ACTION: Notice of a proposed agreement with the State of Ohio.

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SUMMARY: By letter dated June 22, 1998, former Governor George V.

Voinovich of Ohio requested that the U.S. Nuclear Regulatory Commission

(NRC) enter into an Agreement with the State as authorized by Section

274 of the Atomic Energy Act of 1954, as amended (Act). Under the

proposed Agreement, the Commission would give up, and Ohio would take

over, portions of the Commission's regulatory authority exercised

within the State. As required by the Act, NRC is publishing the

proposed Agreement for public comment. NRC is also publishing the

summary of an assessment by the NRC staff of the Ohio regulatory

program. Comments are requested on the proposed Agreement, especially

its effect on public health and safety. Comments are also requested on

the NRC staff assessment, the adequacy of the Ohio program staff, and

the State's commitments concerning the program staff, as discussed in

this notice.

The proposed Agreement would release (exempt) persons who possess

or use certain radioactive materials in Ohio from portions of the

Commission's regulatory authority. The Act requires that NRC publish

those exemptions. Notice is hereby given that the pertinent exemptions

have been previously published in the Federal Register and are codified

in the Commission's regulations as 10 CFR Part 150.

DATES: The comment period expires April 26, 1999. Comments received

after this date will be considered if it is practical to do so, but the

Commission cannot assure consideration of comments received after the

expiration date.

ADDRESSES: Written comments may be submitted to Mr. David L. Meyer,

Chief, Rules and Directives Branch, Division of Administrative

Services, Office of Administration, Washington, DC 20555-0001. Copies

of comments received by NRC may be examined at the NRC Public Document

Room, 2120 L Street, NW. (Lower Level), Washington, DC. Copies of the

proposed Agreement, copies of the request for an Agreement by the

Governor of Ohio including all information and documentation submitted

in support of the request, and copies of the full text of the NRC staff

assessment are also available for public inspection in the NRC's Public

Document Room.

FOR FURTHER INFORMATION CONTACT: Richard L. Blanton, Office of State

Programs, U.S. Nuclear Regulatory Commission, Washington, DC 20555-

0001. Telephone (301) 415-2322 or e-mail [email protected].

SUPPLEMENTARY INFORMATION: Since Section 274 of the Act was added in

1959, the Commission has entered into Agreements with 30 States. The

Agreement States currently regulate approximately 16,000 agreement

material licenses, while NRC regulates approximately 5800 licenses.

Under the proposed Agreement, approximately 550 NRC licenses will

transfer to Ohio. NRC periodically reviews the performance of the

Agreement States to assure compliance with the provisions of Section

274.

Section 274e requires that the terms of the proposed Agreement be

published in the Federal Register for public comment once each week for

four consecutive weeks. This notice is being published in fulfillment

of the requirement.

I. Background

(a) Section 274d of the Act provides the mechanism for a State to

assume regulatory authority, from the NRC, over certain radioactive

materials 1 and activities that involve use of the

materials. In a letter dated June 22, 1998, Governor Voinovich

certified that the State of Ohio has a program for the control of

radiation hazards that is adequate to protect public health and safety

within Ohio for the materials and activities specified in the proposed

Agreement, and that the State desires to assume regulatory

responsibility for these materials and activities. Included with the

letter was the text of the proposed Agreement, which is shown in

Appendix A to this notice.

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\1\ The radioactive materials, sometimes referred to as

``agreement materials,'' are: (a) byproduct materials as defined in

Section 11e.(1) of the Act; (b) byproduct materials as defined in

Section 11e.(2) of the Act; (c) source materials as defined in

Section 11z. of the Act; and (d) special nuclear materials as

defined in Section 11aa. of the Act, restricted to quantities not

sufficient to form a critical mass.

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The radioactive materials and activities (which together are

usually referred to as the ``categories of materials'') which the State

of Ohio requests authority over are: (1) The possession and use of

byproduct materials as defined in Section 11e.(1) of the Act; (2) the

generation, possession, use, and disposal of byproduct materials as

defined in Section 11e.(2) of the Act; (3) the possession and use of

source materials; (4) the possession and use of special nuclear

materials in quantities not sufficient to form a critical mass; (5) the

regulation of the land disposal of byproduct materials as defined in

Section 11e.(1) of the Act, source, or special nuclear waste materials

received from other persons; and (6) the evaluation of radiation safety

information on sealed sources or devices containing byproduct materials

as defined in Section 11e.(1) of the Act, source, or special nuclear

materials and the registration of the sealed sources or devices for

distribution, as provided for in regulations or orders of the

Commission.

(b) The proposed Agreement contains articles that:

--Specify the materials and activities over which authority is

transferred;

--Specify the activities over which the Commission will retain

regulatory authority;

--Continue the authority of the Commission to safeguard nuclear

materials and restricted data;

--Commit the State of Ohio and NRC to exchange information as necessary

to maintain coordinated and compatible programs;

--Provide for the reciprocal recognition of licenses;

--Provide for the suspension or termination of the Agreement;

--Provide for the transfer of any financial surety funds collected by

Ohio for reclamation or long-term surveillance of sites for the

disposal of byproduct materials (as defined in Section 11e.(2) of the

Act) to the United States if custody of the

[[Page 14474]]

material and the disposal site are transferred; and

--Specify the effective date of the proposed Agreement. The Commission

reserves the option to modify the terms of the proposed Agreement in

response to comments, to correct errors, and to make editorial changes.

The final text of the Agreement, with the effective date, will be

published after the Agreement is approved by the Commission, and signed

by the Chairman of the Commission and the Governor of Ohio.

(c) Ohio currently regulates the users of naturally-occurring and

accelerator-produced radioactive materials. The regulatory program is

authorized by law in Section 3748 of the Ohio Revised Code. Subsection

3748.03 provides the authority for the Governor to enter into an

Agreement with the Commission.

Ohio law contains provisions for the orderly transfer of regulatory

authority over affected licensees from NRC to the State. After the

effective date of the Agreement, licenses issued by NRC would continue

in effect as Ohio licenses until the licenses expire or are replaced by

State issued licenses. NRC licenses transferred to Ohio which contain

requirements for decommissioning and express an intent to terminate the

license when decommissioning has been completed in accordance with a

Commission approved decommissioning plan will continue as Ohio licenses

and will be terminated by Ohio when the Commission approved

decommissioning plan has been completed.

(d) As described below, the proposed Agreement will be signed only

after the fulfillment of commitments by Ohio to hire, train, and

qualify a sufficient number of professional/technical staff. Contingent

on the fulfilment of these commitments, the NRC staff assessment finds

that the Ohio program is adequate to protect public health and safety,

and is compatible with the NRC program for the regulation of agreement

materials.

II. Summary of the NRC Staff Assessment of the Ohio Program for the

Control of Agreement Materials

NRC staff has examined the Ohio request for an Agreement with

respect to the ability of the radiation control program to regulate

agreement materials. The examination was based on the Commission's

policy statement ``Criteria for Guidance of States and NRC in

Discontinuance of NRC Regulatory Authority and Assumption Thereof by

States Through Agreement'' (referred to herein as the ``NRC criteria'')

(46 FR 7540; January 23, 1981, as amended).

(a) Organization and Personnel. The agreement materials program

will be located within the existing Bureau of Radiation Protection

(Bureau) of the Ohio Department of Health. The program will be

responsible for all regulatory activities related to the proposed

Agreement.

The educational requirements for the Bureau staff members are

specified in the Ohio State personnel position descriptions, and meet

the NRC criteria with respect to formal education or combined education

and experience requirements. All current staff members hold at least

bachelor's degrees in physical or life sciences, or have a combination

of education and experience at least equivalent to a bachelor's degree.

Several staff members hold advanced degrees, and all staff members have

had additional training plus working experience in radiation

protection. Supervisory level staff have more than ten years working

experience each in radiation protection.

The Bureau currently has staff vacancies, which it is actively

recruiting to fill. In response to NRC comments, the Bureau performed,

and NRC staff reviewed, an analysis of the expected Bureau workload

under the proposed Agreement. Based on the analysis, Ohio has made

three commitments. First, the Bureau will employ a staff of at least 21

full-time professional/technical employees for the agreement materials

program. Second, the distribution of the qualifications of the

individual staff members will be balanced to the distribution of

categories of licensees transferred from NRC. For example, there will

be enough inspectors trained and qualified to inspect industrial

radiography operations that the program will be able to inspect all of

the industrial radiography licensees transferred from NRC without

developing a backlog of overdue inspections. Third, each individual on

the staff will be qualified in accordance with the Bureau's training

and qualification procedure (including use of interim qualification) to

function in the areas of responsibility to which the individual is

assigned. In the case of individuals assigned to review radiation

safety information on sealed sources or devices containing byproduct

materials as defined in Section 11e.(1) of the Act, source, or special

nuclear materials, this commitment includes assuring that the

individuals will be able to:

--Understand and interpret, if necessary, appropriate prototype tests

that ensure the integrity of the products under normal, and likely

accidental, conditions of use,

--Understand and interpret test results,

--Read and understand blueprints and drawings,

--Understand how the device works and how safety features operate,

--Understand and apply appropriate regulations,

--Understand the conditions of use,

--Understand external dose rates, source activities, and nuclide

chemical form, and

--Understand and utilize basic knowledge of engineering materials and

their properties.

(b) Legislation and Regulations. The Ohio Department of Health is

designated by law in Chapter 3748 of the Ohio Revised Code to be the

radiation control agency. The law provides the Department the authority

to issue licenses, issue orders, conduct inspections, and to enforce

compliance with regulations, license conditions, and orders. Licensees

are required to provide access to inspectors. The Public Health Council

is authorized to promulgate regulations.

The law requires the Public Health Council to adopt rules that are

compatible with the equivalent NRC regulations and that are equally

stringent to, or to the extent practicable more stringent than, the

equivalent NRC regulations. The Council has adopted, by reference, the

NRC regulations in Title 10 of the Code of Federal Regulations that

were in effect on October 19, 1998. The adoption by reference is

contained in Chapter 3701-39-021 of the Ohio Administrative Code (OAC).

The Board of Health has extended the effect of the rules, where

appropriate, to apply to naturally occurring radioactive materials and

to radioactive materials produced in particle accelerators, in addition

to agreement materials.

Ohio rule 3701-39-021 (A) specifies that references to the NRC

shall be construed as references to the Director of the Department of

Health. It is noted, however, that Ohio has adopted most of the NRC

regulations as entire Parts, including sections that address regulatory

matters reserved to the Commission. Ohio has adopted a provision in

Rule 3701-39-021 (A) excepting such sections from being construed as

enforced by the Director of the Department of Health. The OAC also

contains a provision to avoid interference with licensees when they are

complying with regulatory requirements which the Act specifies NRC must

enforce and when they are complying with NRC regulatory

[[Page 14475]]

requirements from which the State licensees have not been exempted by

the proposed Agreement. The NRC staff concludes that Ohio will not

attempt to enforce the regulatory matters reserved to the Commission.

In accordance with NRC Management Directive 5.9, ``Adequacy and

Compatibility of Agreement State Programs,'' this approach is

considered compatible.

The NRC staff review verified that the Ohio rules contain all of

the provisions that are necessary in order to be compatible with the

regulations of the NRC on the effective date of the Agreement between

the State and the Commission. The adoption of the NRC regulations by

reference assures that the standards will be uniform.

The Ohio regulations are different from the NRC regulations with

respect to the decommissioning of a licensed facility and the

termination of the license. Current NRC regulations permit a license to

be terminated when the facility has been decommissioned, i.e., cleaned

of radioactive contamination, such that the residual radiation will not

cause a total effective dose equivalent greater than 25 millirem per

year to an average member of the group of individuals reasonably

expected to receive the greatest exposure. Normally, the NRC

regulations require that the 25 millirem dose constraint be met without

imposing any restrictions regarding the future use of the land or

buildings of the facility (``unrestricted release''). Under certain

circumstances, NRC regulations in 10 CFR Part 20, Subpart E, allow a

license to be terminated if the 25 millirem dose constraint is met with

restrictions on the future use (``restricted release''). Ohio law does

not allow a license to be terminated under restricted release. Ohio

will instead issue special ``decommissioning-possession only'' licenses

as an alternative to license termination under restricted release. The

Commission has concluded that Ohio's approach, although different, is

compatible.

(c) Storage and Disposal. Ohio has also adopted, by reference, the

NRC requirements for the storage of radioactive material, and for the

disposal of radioactive material as waste. The waste disposal

requirements cover both the disposal of waste generated by the licensee

and the disposal of waste generated by and received from other persons.

(d) Transportation of Radioactive Material. Ohio has adopted the

NRC regulations in 10 CFR Part 71 by reference. Part 71 contains the

requirements licensees must follow when preparing packages containing

radioactive material for transport. Part 71 also contains requirements

related to the licensing of packaging for use in transporting

radioactive materials. Ohio will not attempt to enforce portions of the

regulations related to activities, such as approving packaging designs,

which are reserved to NRC.

(e) Recordkeeping and Incident Reporting. Ohio has adopted, by

reference, the sections of the NRC regulations which specify

requirements for licensees to keep records, and to report incidents or

accidents involving materials.

(f) Evaluation of License Applications. Ohio has adopted, by

reference, the NRC regulations that specify the requirements which a

person must meet in order to get a license to possess or use

radioactive materials. Ohio has also developed a licensing procedures

manual, along with the accompanying regulatory guides, which are

adapted from similar NRC documents and contain guidance for the program

staff when evaluating license applications.

(g) Inspections and Enforcement. The Ohio radiation control program

has adopted a schedule providing for the inspection of licensees as

frequently as, or more frequently than, the inspection schedule used by

NRC. The program has adopted procedures for the conduct of inspections,

the reporting of inspection findings, and the report of inspection

results to the licensees. The program has also adopted, by rule in the

OAC, procedures for the enforcement of regulatory requirements.

(h) Regulatory Administration. The Ohio Department of Health is

bound by requirements specified in State law for rulemaking, issuing

licenses, and taking enforcement actions. The program has also adopted

administrative procedures to assure fair and impartial treatment of

license applicants. Ohio law prescribes standards of ethical conduct

for State employees.

(i) Cooperation with Other Agencies. Ohio law deems the holder of

an NRC license on the effective date of the proposed Agreement to

possess a like license issued by Ohio. The law provides that these

former NRC licenses will expire either 90 days after receipt from the

radiation control program of a notice of expiration of such license or

on the date of expiration specified in the NRC license, whichever is

later. In the case of NRC licenses that are terminated under restricted

conditions pursuant to 10 CFR 20.1403 prior to the effective date of

the proposed Agreement, Ohio deems the termination to be final despite

any other provisions of State law or rule. For NRC licenses that, on

the effective date of the proposed Agreement, contain a license

condition indicating intent to terminate the license upon completion of

a Commission approved decommissioning plan, the transferred license

will be terminated by Ohio in accordance with the plan so long as the

licensee conforms to the approved plan.

Ohio also provides for ``timely renewal.'' This provision affords

the continuance of licenses for which an application for renewal has

been filed more than 30 days prior to the date of expiration of the

license. NRC licenses transferred while in timely renewal are included

under the continuation provision. The OAC provides exemptions from the

State's requirements for licensing of sources of radiation for NRC and

U.S. Department of Energy contractors or subcontractors.

The proposed Agreement commits Ohio to use its best efforts to

cooperate with the NRC and the other Agreement States in the

formulation of standards and regulatory programs for the protection

against hazards of radiation and to assure that Ohio's program will

continue to be compatible with the Commission's program for the

regulation of agreement materials. The proposed Agreement stipulates

the desirability of reciprocal recognition of licenses, and commits the

Commission and Ohio to use their best efforts to accord such

reciprocity.

III. Staff Conclusion

Subsection 274d of the Act provides that the Commission shall enter

into an agreement under subsection 274b with any State if:

(a) The Governor of the State certifies that the State has a

program for the control of radiation hazards adequate to protect public

health and safety with respect to the agreement materials within the

State, and that the State desires to assume regulatory responsibility

for the agreement materials; and

(b) The Commission finds that the State program is in accordance

with the requirements of Subsection 274o, and in all other respects

compatible with the Commission's program for the regulation of

materials, and that the State program is adequate to protect public

health and safety with respect to the materials covered by the proposed

Agreement.

On the basis of its assessment, the NRC staff concludes that the

State of Ohio meets the requirements of the Act, conditioned on

completion of the commitments made in regard to the program staff. The

State's program, as defined by its statutes, regulations, personnel,

licensing, inspection, and administrative procedures, is

[[Page 14476]]

compatible with the program of the Commission and adequate to protect

public health and safety with respect to the materials covered by the

proposed Agreement.

NRC will continue the formal processing of the proposed Agreement,

however, the signing of the Agreement will be contingent upon the

Bureau's completion of the staffing commitments.

IV. Small Business Regulatory Enforcement Fairness Act

In accordance with the Small Business Regulatory Enforcement

Fairness Act of 1996, the NRC has determined that this action is not a

major rule and has verified this determination with the Office of

Information and Regulatory Affairs of the Office of Management and

Budget (OMB).

Dated at Rockville, Maryland, this 5th day of March, 1999.

For the Nuclear Regulatory Commission.

Annette Vietti-Cook,

Secretary of the Commission.

An Agreement Between the United States Nuclear Regulatory

Commission and the State of Ohio for the Discontinuance of Certain

Commission Regulatory Authority and Responsibility Within the State

Pursuant to Section 274 of the Atomic Energy Act of 1954, as

Amended

Whereas, The United States Nuclear Regulatory Commission

(hereinafter referred to as the Commission) is authorized under Section

274 of the Atomic Energy Act of 1954, as amended (hereinafter referred

to as the Act), to enter into agreements with the Governor of any State

providing for discontinuance of the regulatory authority of the

Commission within the State under Chapters 6, 7, and 8, and Section 161

of the Act with respect to byproduct materials as defined in Sections

11e.(1) and (2) of the Act, source materials, and special nuclear

materials in quantities not sufficient to form a critical mass; and,

Whereas, The Governor of the State of Ohio is authorized under

Chapter 3748. of the Ohio Revised Code to enter into this Agreement

with the Commission; and,

Whereas, The Governor of the State of Ohio certified on June 22,

1998, that the State of Ohio (hereinafter referred to as the State) has

a program for the control of radiation hazards adequate to protect the

health and safety of the public and to protect the environment with

respect to the materials within the State covered by this Agreement,

and that the State desires to assume regulatory responsibility for such

materials; and,

Whereas, The Commission found on (date to be determined) that the

program of the State for the regulation of the materials covered by

this Agreement is compatible with the Commission's program for the

regulation of such materials and is adequate to protect public health

and safety; and,

Whereas, The State and the Commission recognize the desirability

and importance of cooperation between the Commission and the State in

the formulation of standards for protection against hazards of

radiation and in assuring that State and Commission programs for

protection against hazards of radiation will be coordinated and

compatible; and,

Whereas, The Commission and the State recognize the desirability of

reciprocal recognition of licenses, and of the granting of limited

exemptions from licensing of those materials subject to this Agreement;

and,

Whereas, This Agreement is entered into pursuant to the provisions

of the Atomic Energy Act of 1954, as amended;

Now Therefore, It is hereby agreed between the Commission and the

Governor of the State of Ohio, acting in behalf of the State, as

follows:

Article I

Subject to the exceptions provided in Articles II, IV, and V, the

Commission shall discontinue, as of the effective date of this

Agreement, the regulatory authority of the Commission in the State

under Chapters 6, 7, and 8, and Section 161 of the Act with respect to

the following materials:

1. Byproduct materials as defined in Section 11e.(1) of the Act;

2. Byproduct materials as defined in Section 11e.(2) of the Act;

3. Source materials;

4. Special nuclear materials in quantities not sufficient to form a

critical mass;

5. The regulation of the land disposal of byproduct, source, or

special nuclear waste materials received from other persons; and,

6. The evaluation of radiation safety information on sealed sources

or devices containing byproduct, source, or special nuclear materials

and the registration of the sealed sources or devices for distribution,

as provided for in regulations or orders of the Commission.

Article II

A. This Agreement does not provide for discontinuance of any

authority and the Commission shall retain authority and responsibility

with respect to:

1. The regulation of the construction and operation of any

production or utilization facility or any uranium enrichment facility;

2. The regulation of the export from or import into the United

States of byproduct, source, or special nuclear material, or of any

production or utilization facility;

3. The regulation of the disposal into the ocean or sea of

byproduct, source, or special nuclear waste materials as defined in the

regulations or orders of the Commission;

4. The regulation of the disposal of such other byproduct, source,

or special nuclear material as the Commission from time to time

determines by regulation or order should, because of the hazards or

potential hazards thereof, not be so disposed without a license from

the Commission.

B. Notwithstanding this Agreement, the Commission retains the

following authorities pertaining to byproduct material as defined in

Section 11e.(2) of the Atomic Energy Act:

1. Prior to the termination of a State license for such byproduct

material, or for any activity that results in the production of such

material, the Commission shall have made a determination that all

applicable standards and requirements pertaining to such material have

been met.

2. The Commission reserves the authority to establish minimum

standards governing reclamation, long-term surveillance or maintenance,

and ownership of such byproduct material and of land used as a disposal

site for such material.

Such reserved authority includes:

a. The authority to establish terms and conditions as the

Commission determines necessary to assure that, prior to termination of

any license for such byproduct material, or for any activity that

results in the production of such material, the licensee shall comply

with decontamination, decommissioning, and reclamation standards

prescribed by the Commission; and with ownership requirements for such

materials and its disposal site;

b. The authority to require that prior to termination of any

license for such byproduct material or for any activity that results in

the production of such material, title to such byproduct material and

its disposal site be transferred to the United States or the State at

the option of the State (provided such option is exercised prior to

termination of the license);

c. The authority to permit use of the surface or subsurface

estates, or both, of the land transferred to the United States

[[Page 14477]]

or a State pursuant to paragraph 2.b. in this section in a manner

consistent with the provisions of the Uranium Mill Tailings Radiation

Control Act of 1978, provided that the Commission determines that such

use would not endanger public health, safety, welfare, or the

environment;

d. The authority to require, in the case of a license, if any, for

any activity that produces such byproduct material (which license was

in effect on November 8, 1981), transfer of land and material pursuant

to paragraph 2.b. in this section taking into consideration the status

of such material and land and interests therein, and the ability of the

licensee to transfer title and custody thereof to the United States or

the State;

e. The authority to require the Secretary of the Department of

Energy, other Federal agency, or State, whichever has custody of such

byproduct material and its disposal site, to undertake such monitoring,

maintenance, and emergency measures as are necessary to protect public

health and safety, and other actions as the Commission deems necessary;

and

f. The authority to enter into arrangements as may be appropriate

to assure Federal long-term surveillance or maintenance of such

byproduct material and its disposal site on land held in trust by the

United States for any Indian Tribe or land owned by an Indian Tribe and

subject to a restriction against alienation imposed by the United

States.

Article III

Notwithstanding this Agreement, the Commission may from time to

time by rule, regulation, or order, require that the manufacturer,

processor, or producer of any equipment, device, commodity, or other

product containing source, byproduct, or special nuclear material shall

not transfer possession or control of such product except pursuant to a

license or an exemption from licensing issued by the Commission.

Article IV

This Agreement shall not affect the authority of the Commission

under Subsection 161b or 161i of the Act to issue rules, regulations,

or orders to protect the common defense and security, to protect

restricted data or to guard against the loss or diversion of special

nuclear material.

Article V

The Commission will cooperate with the State and other Agreement

States in the formulation of standards and regulatory programs of the

State and the Commission for protection against hazards of radiation

and to assure that State and Commission programs for protection against

hazards of radiation will be coordinated and compatible. The State

agrees to cooperate with the Commission and other Agreement States in

the formulation of standards and regulatory programs of the State and

the Commission for protection against hazards of radiation and to

assure that the State's program will continue to be compatible with the

program of the Commission for the regulation of materials covered by

this Agreement.

The State and the Commission agree to keep each other informed of

proposed changes in their respective rules and regulations, and to

provide each other the opportunity for early and substantive

contribution to the proposed changes.

The State and the Commission agree to keep each other informed of

events, accidents, and licensee performance that may have generic

implication or otherwise be of regulatory interest.

Article VI

The Commission and the State agree that it is desirable to provide

reciprocal recognition of licenses for the materials listed in Article

I licensed by the other party or by any other Agreement State.

Accordingly, the Commission and the State agree to develop appropriate

rules, regulations, and procedures by which such reciprocity will be

accorded.

Article VII

The Commission, upon its own initiative after reasonable notice and

opportunity for hearing to the State, or upon request of the Governor

of the State, may terminate or suspend all or part of this Agreement

and reassert the licensing and regulatory authority vested in it under

the Act if the Commission finds that (1) such termination or suspension

is required to protect public health and safety, or (2) the State has

not complied with one or more of the requirements of Section 274 of the

Act. The Commission may also, pursuant to Section 274j of the Act,

temporarily suspend all or part of this Agreement if, in the judgement

of the Commission, an emergency situation exists requiring immediate

action to protect public health and safety and the State has failed to

take necessary steps. The Commission shall periodically review actions

taken by the State under this Agreement to ensure compliance with

Section 274 of the Act which requires a State program to be adequate to

protect public health and safety with respect to the materials covered

by this Agreement and to be compatible with the Commission's program.

Article VIII

In the licensing and regulation of byproduct material as defined in

Section 11e.(2) of the Act, or of any activity which results in

production of such material, the State shall comply with the provisions

of Section 274o of the Act. If in such licensing and regulation, the

State requires financial surety arrangements for reclamation or long-

term surveillance and maintenance of such material,

A. The total amount of funds the State collects for such purposes

shall be transferred to the United States if custody of such material

and its disposal site is transferred to the United States upon

termination of the State license for such material or any activity

which results in the production of such material. Such funds include,

but are not limited to, sums collected for long-term surveillance or

maintenance. Such funds do not, however, include monies held as surety

where no default has occurred and the reclamation or other bonded

activity has been performed; and

B. Such surety or other financial requirements must be sufficient

to ensure compliance with those standards established by the Commission

pertaining to bonds, sureties, and financial arrangements to ensure

adequate reclamation and long-term management of such byproduct

material and its disposal site.

Article IX

This Agreement shall become effective on July 22, 1999, and shall

remain in effect unless and until such time as it is terminated

pursuant to Article VIII.

Done at Columbus, Ohio this (date to be determined).

For the United States Nuclear Regulatory Commission.

________, Chairman.

For the State of Ohio.

________, Governor.

[FR Doc. 99-7278 Filed 3-24-99; 8:45 am]

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