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News Release 5/22/03

Contact: Sue Martin
801-532-5322 or
801-209-3062

Licensing Board Agrees - PFS Facility Will Withstand Earthquakes

SALT LAKE CITY (May 22, 2003) - Today Private Fuel Storage (PFS) received a vote of confidence from the Atomic Safety and Licensing Board, which issued a 372-page decision that the proposed facility for temporarily storing spent nuclear fuel in Skull Valley, Utah, is properly designed to withstand earthquakes that might occur there.

The ruling stated "[W]e find that the Applicant has met its burden of proof on all . . . seismic-related issues. Although the State presented thoughtful, valuable evidence that tested many aspects of the Applicant's presentation, the Applicant's position essentially withstood that scrutiny. "The Board's decision went on to note that the "extensive exploration of those questions in the hearing should provide reassurance to the State's citizens that the merits of the Applicant's proposal have been thoroughly scrutinized."

"We are very pleased with this decision," said PFS Chairman John Parkyn. "We were able to show through our detailed studies of the geology of the area and testimony about the robust design of the facility that a likely earthquake would cause little damage, and the consequences would be well within federal health and safety standards. In fact, we believe that if a major earthquake were to occur in the area, our facility would be far safer than interstate highway bridges and other important buildings and structures in Salt Lake City."

Today's ruling is the second of four decisions the ASLB must make before it can recommend that the Nuclear Regulatory Commission issue a license for PFS to build and operate the temporary storage facility. Its first ruling, issued on March 10, 2003, expressed concerns about the probability of a military airplane crash at the site and offered PFS options for addressing those concerns or appealing the ruling. PFS announced on March 31, 2003, that it will pursue all options - an appeal to the NRC Commissioners, hearings to address ASLB concerns, and a request to the ASLB to consider a license conditioned on a smaller site size.

"I'm glad that we are getting these issues resolved," said Leon Bear, Chairman of the Skull Valley Band of Goshutes Indians, which is leasing reservation land for the proposed facility. "This decision brings us one step closer to the approval of a license and an opportunity for our people who will be able to participate in the construction and operation of the facility."

Private Fuel Storage is a consortium of nuclear utility companies that pooled resources to license, construct, and operate a centralized temporary facility to store spent nuclear fuel for up to 20-40 years, until the proposed permanent federal repository at Yucca Mountain, NV, is ready to accept the spent fuel stored at the facility. PFS signed a lease with the Skull Valley Band of Goshute Indians in 1997 to use 820 acres of its reservation for the 100-acre facility. In June 1997, PFS submitted its application to the NRC.

The spent fuel is now stored in pools or dry storage containers at each power plant, many of which will run out of on-site storage capacity before Yucca Mountain is completed. To keep their plants operating at levels that meet growing electricity needs, the utilities must have other interim storage options. In addition, many utilities are currently spending millions each year to maintain storage pools at plants that are no longer operating but cannot fully decommission until they can move their spent fuel off site.

For further information about the PFS facility and its history, visit www.privatefuelstorage.com.

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