City of West Chicago, Illinois v. NRC
By: LN on May 02, 2012 09:38:49 AM

Citation:  701 F.2d 632 (1983)

Summary:  Appellee, NRC granted a license to the KM without holding a hearing where appellants were not made parties. Appellants claimed that by giving an opportunity for hearing appellee violated the laws.

Facts:  Kerr - McGee Corporation (KM) operated a milling facility for production of thorium and thorium compounds. The plant was closed in 1973 and there was about 5 million cubic feet of contaminated waste of building rubble. The Nuclear Regulatory Authority (NRC) had been studying the plan which was proposed by KM for clearing the rubble. The NRC licenses were a source materials licenses. Later on KM submitted emergency request for demolishing a building. The NRC granted these licenses. Appellant brought suit challenging the issuance of licenses and asked the district court to set aside the Amendment 3 claiming inter alia that the amendment violated the National Environmental Policy Act. Appellant did not have an opportunity to request for a hearing. KM's activities were temporarily enjoined till NRC gave Notice to the appellant. Accordingly a Notice was given by NRC. NRC ordered denying appellant's request for a hearing. Appellant filed an appeal to the Appellate Court.

Issue:  Whether NRC was correct in denying appellant a hearing in a license proceeding?

Holding:  No, NRC was not correct in denying appellant a hearing in a license proceeding.

Procedure:  Judgment of the NRC was affirmed by the Appellate Court.

Rule:  NRC has to grant a hearing when requested in any proceedings for granting, suspending, revoking or amending any license or construction permit. (§ 189 (a), Atomic Energy Act of 1954).

Rationale:  There was no evidence presented to the courts as to the intention of the congress which required formal hearings for all the activities made under § 189(a), AEA and hence NRC did not violate the act.


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