05 Commitment to Buy - Letter of Agreement

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THERMO PROCESS INSTRUMENTS
1410 Gillingham
Sugar Land, Texas 77478-2890
Ph 713.272.5383
Fx 713.272.5331
www.thermo.com
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/distributors have implemented effective repurposing program on large quantities
of radioactive material, which includes repurposing combinations utilizing …
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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
THERMO PROCESS INSTRUMENTS
1410 Gillingham
Sugar Land, Texas 77478-2890
Ph 713.272.5383
Fx 713.272.5331
www.thermo.com
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 industry has no incentive to reduce the volume of radioactive material
entering America and has no incentive to minimize waste being buried in our State of Texas.
Waste brokers rush to identify 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 Facility while 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 PROCESS INSTRUMENTS
1410 Gillingham
Sugar Land, Texas 77478-2890
Ph 713.272.5383
Fx 713.272.5331
www.thermo.com
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 shipped to 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 to small
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 capsules are QSA/Amersham, and, these
exact same sources are being used amongst all manufacturers for repurposing.
THERMO PROCESS INSTRUMENTS
1410 Gillingham
Sugar Land, Texas 77478-2890
Ph 713.272.5383
Fx 713.272.5331
www.thermo.com
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 a 2% 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 Vega receive 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. Repurposing is in its infant stages and
became widely practiced after Barnwell closed to outsiders in 2008. The Barnwell closure
THERMO PROCESS INSTRUMENTS
1410 Gillingham
Sugar Land, Texas 77478-2890
Ph 713.272.5383
Fx 713.272.5331
www.thermo.com
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
four years 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
marvin.smith@thermofisher.com
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