1410 Gillingham
Sugar Land, Texas 77478-2890
Ph 713.272.5383
Fx 713.272.5331
Friday, July 26, 2013
Texas Low Level Radioactive Waste Disposal Compact Commission
333 Guadalupe Street
Suite 3-240
Austin, Texas 78701
Re: White Paper dated 4 June 2013- Feedback and Comments
Thermo Process Instruments, a subsidiary of Thermo Fisher Scientific, State of Texas Radioactive Material License L03524, thanks the Texas Compact Commission for allowing us to comment on the white paper providing guidance on waste generators for radioactive sealed sources at the Compact Facility.
Thermo Fisher Scientific has a 57 year manufacturing history within the State of Texas. Thermo Fisher acquired companies which include Texas Nuclear, TN Technologies, Thermo Measuretech, Kay Ray, TMT, Sensall, KSI, TN-KSI, and other nuclear instrumentation manufacturers. Thermo Fisher consolidated these companies into Texas with our current nuclear instrumentation manufacturing facility in Sugar Land. Texas Nuclear originally opened offices on Research Boulevard in Austin, Texas in 1956. Historic photo attached.
The white paper states, “The primary consideration for the answer to this question begins with the premise that the last entity to own a radioactive material and put it to beneficial use will become the waste generator when that material is disposed at the Compact Facility.” The Thermo Fisher Corporation globally promotes, “At Thermo Fisher Scientific, we enable you to make the world healthier, cleaner and safer.” Thermo Fisher feels that by allowing manufacturers/distributors that act as salvagers of sealed sources to be waste generators promotes a healthier, cleaner and safer world.
Manufacturing of nuclear instruments is moving into a new era with repurposing programs. Manufacturers/distributorshave implemented effective repurposing program on large quantities of radioactive material, which includes repurposing combinations utilizing …
- Reusing Sealed Sources
- Recertifying Sealed Sources
- Re-encapsulating Sealed Sources
- Recycling Sealed Sources
- Source Stacking
- Manufacturer Source Swaps
- Redistribution to Industry Manufactures
- Collection of Sealed Sources for DOE Threat Reduction
Manufacturers/distributors that demonstrate salvaging operations and maximize the repurposing of sources into a secondary market should receive the benefit to be the waste generator for both their manufactured devices and devices that are similar and like in design manufactured by others. Thermo Fisher wants the option to be the waste generator. Thermo Fisher is receptive to future out of compact fees, after its inventory reduction, for sources entering the Compact Facility that are not manufactured in or received from Texas/Vermont.
Manufacturers/distributors which can demonstrate repurposing programs act as salvagers and should be granted the benefit to be the waste generator. Industrial sealed sources are a unique type of material. Industrial sealed sources have permanent serial numbers etched on their sides. Traceability starts when the sealed source is installed in the nuclear device by the manufacturer, and, continues throughout its life.
As a manufacturer/distributor in the State of Texas, we are required to provide quarterly reports to the State of Texas on a quarterly basis of generally licensed devices we receive which includes serial number, isotope and activity. Thermo Fisher receives their manufactured devices, and, we receive devices of our competitors which are similar and like product, when end users are finished with the radioactive device we have historically provided a licensee to licensee transfer of radioactive material, and, Thermo Fisher assumes responsibility for the sealed source.
Nuclear Licenses – Waste Broker vs. Manufacturer/Distributor
Manufacturers/distributors continue to increase repurposing programs, and, these efforts positively influence public health and safety. Repurposing provides another level of protection before sealed sources that contain radioactive material are deemed waste. Repurposing sources reduces the demand for new sealed sources imported into America, and, minimizes sealed sources from entering the Compact Facility. Repurposing sealed sources provides a double benefit to our country and environment.
The waste brokerage industryhas no incentive to reduce the volume of radioactive material entering America and hasno incentive to minimize waste being buried in our State of Texas. Waste brokers rush toidentify the waste generator. Waste brokers are incentivized to prematurely push radioactive sealed sources into a waste stream, and, transport the waste with their transportation business. Waste brokers have more than doubled their profits having access into the Compact Facilitywhile simultaneously providing solutions that are environmentally
not friendly.
The white paper favors the waste brokerage industry. Thermo Fisher has historically received their competitor’s sources as a part of routine business. It is not logical that manufacturers cannot receive their competitor’s sources without the end user being at risk for waste generation. Everyday manufacturers across America, quote the receipt of their competitors sealed sources, in combination with the sale of their manufactured product. Therefore, when we make a new product quotes which includes the return of a competitor’s source, almost by de facto, our competitor gets contacted. It appears the market we created with fifty years of manufacturing and servicing nuclear devices is being split.
Thermo Fisher, for the first time in its Texas manufacturing history, cannot provide a turnkey solution in installing our new product and removing our competitor’s product. A turnkey solution confirms that when the competitor’s nuclear device leaves the end user site, and, we complete a licensee to licensee transfer of radioactive material for that specific sealed source which shippedto us on a bill of lading, that the transaction is complete, and, the end user does not have risk to become the waste generator.
If manufacturers cannot provide a full service to end users, less sealed sources will be returned to the manufacturers. When manufacturers need a specific type of source, and, there is not a source available for repurposing, manufacturers will import new sealed sources into America. The more sealed sources that are imported, the more sealed sources enter the facility. By allowing Thermo Fisher and other manufacturers to be the waste generator for their similar products, you break the cycle. The State of Texas has the ability to reduce the amount of sealed sources being imported into the country by allowing manufacturers full access to sources on a secondary market, and, this will reduce sealed source being deemed waste and entering the Compact Facility.
As industry and repurposing matures, significant portions of the radioactive material entering the Compact Facility could be repurposed. Manufacturers are seeking more creative ways to use sources, transfer sources amongst themselves for repurposing, and we are developing new products using multiple repurposed sources installed into one device. Keeping sealed sources within the manufacturing industry allows the repurposing industry to mature.
“Waste brokers look at radioactive material and see waste.
Manufacturers look at radioactive material and see reusable energy.”
End Users
End users have not traditionally been the waste generator. Most end users understand sealed sources are classified as radioactive material, but, sealed sources don’t enter their waste streams. Many nuclear device manufacturers have gone out of business. Therefore, many end users are being forced to be waste generators for the first time with no options. Waste attributed tosmall to mid-size facilities can greatly impact facility insurance which lends itself to storing material. Thermo Fisher and our customers are very sensitive to be associated with the term ‘waste’. Corporate America, EH&S, RSO’s, purchasing agents, attorneys and the like believe that when the radioactive material is removed from their site under a bill of lading, the liability follows it. Allowing manufacturers to evaluate sealed sources for repurposing, and, deeming an end user a waste generator at a later date paints a very deceptive picture. End users must know is it waste or is it radioactive material.
The majority of sealed sources we receive back from our customers are Thermo Fisher manufactured product. The remaining sealed sources we receive are from similar or like products manufactured by approximately four competitors or a few device manufacturers that have gone out of business. Approximately 90% of the capsulesare QSA/Amersham, and, these exact same sources are being used amongst all manufacturers for repurposing.
Once we extract the sealed source from our device or our competitor’s device, the sources are the same. Once we identify the capsule model number, we have just an equal probability to repurpose our source and our competitor’s source. The strategies to repurpose and redistribute are just beginning.
Theoretically, Thermo Fisher could identify a specific sealed source from a competitor that has a 98% probability it can be repurposed, and, there is a2% chance the sealed source is scratched during the extraction process. The scratch would eliminate the sealed source from being repurposed. Because of the 2% risk we have to legally assume worst case scenario, and, the worst case is forcing the customer to be the waste generator. When Thermo Fisher has to start a discussion about a licensee to licensee transfer of radioactive material being waste, this plays into the waste brokerage industry and increases waste entering the Compact Facility.
Every manufacturer takes back their competitors sources as routine business. Our competitors like QSA and Ohmart Vegareceive and repurpose Texas Nuclear sources, and, Thermo Fisher commonly receives the same QSA model source in Ohmart Vega product. While manufacturers are performing routine business, the waste brokerage industry has found a regulatory path to prematurely deem sealed sources as waste by limiting the role of the manufacturer.
Manufacturers/distributors that focus on repurposing cannot tell their customers they ‘might’ enter a waste stream. When end users finalize a transaction to remove radioactive material from their site, lawyers and EH&S departments require an exact definition of the treatment of that specific sealed source with its serial number. Corporate lawyers will focus on the term ‘waste’, which is not the business of manufacturers, and, the legal response we will need to address will be a severe hindrance in day to day business. Thermo Fisher cannot emphasize enough it is common business for manufacturers to quote the receipt of their competitors sources during day to day business.
If manufacturers which repurpose sealed sources cannot be the waste generator, end users will be discouraged to send sealed sources to the manufacturers/distributors that salvage sources. End users cannot identify their long term liability associated with the sealed source that ‘might’ be waste. This is a legal nightmare and a hindrance to maximizing repurposing efforts.
End users are going to be forced into deeming radioactive material prematurely into waste because waste is the only concrete answer provided. It is not practical for Thermo Fisher to explain to a refinery or a power plant that their radioactive material ‘might’ become waste and the end user is liable for waste generation. This is an unacceptable business practice. The ability of manufacturers to capture sources for a secondary market is imperative to maximize repurposing efforts and minimize sealed sources entering the Compact Facility.
Repurposing and The Future
As we move into a new era of manufacturing techniques and environmental concerns,large scale repurposing programs is the trend for corporate responsibility. Manufacturers are on the cutting edge of technology with repurposing radioactive material. Repurposingis in its infant stages and became widely practiced after Barnwell closed to outsiders in 2008. The Barnwell closure forced industry into repurposing techniques to diminish inventories of returned sealed sources. Ironically, the Barnwell closure forced industry into repurposing, and, now that repurposing has been identified, large scale distribution of repurposed sources has been identified.
Long term sorting and retrieval techniques,that lend itself to mass distribution of repurposed sources, are being planned. Manufacturers are in discussions with each other and demand for specific repurposed sources is being identified. By allowing manufacturers with repurposing programs to be waste generators, you assure the flow of sealed sources back into the marketplace for repurposing and redistribution. After our inventory reduction in Sugar Land, we need two to fouryears to maximize output of repurposed sealed sources.
Repurposing has costs on both ends and it doesn’t matter if you are redistributing or receiving. The redistribution of repurposed sources is not being identified as a revenue generating initiative. Thermo Fisher has corporate responsibility to be an industry leader and minimize waste output. We are planning a fifty year plan for sorting, retrieval, redistribution and repurposing of sealed sources.
If manufacturers that salvage sources cannot deem material waste, more sealed sources will enter the waste stream and be buried at the Compact Facility. Thermo Fisher can guarantee that typical radioactive sealed sources being buried have not had their repurposing value exhausted. The largest manufacturers in this country are working together to minimize waste.
Conclusion
As industry evolves, allowing companies like Thermo Fisher the title of last beneficial user, along with the other manufacturers that exhaust repurposing/salvaging efforts, only protects our environment by reducing the amount of radioactive material imported into America for new product, and minimizes waste entering into our Compact Facility.
“At Thermo Fisher Scientific, we enable you to make the world healthier, cleaner and safer.”
Thank you,
Marvin D. Smith
Aftermarket Sales Manager
Thermo Fisher Scientific
1410 Gillingham
Sugar Land, Texas 77478
(713)426-2949