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Re: Envirocare - latest information



I take some small comfort in the fact that Mr. Anderson is neither a member
of the Health Physics Society nor of the American Academy of Health Physics.

Ron Kathren, CHP, DEE

>     Here is the latest information coming out about the Envirocare 
>     "scandal."
>     
>     Steven D. Rima, CHP
>     steven.rima@doegjpo.com
>     
>     
>     ______________________________________________________________________
>     
>     Thursday, January 9, 1997 
>     
>     
>                 ENVIROCARE GOT BREAKS AND STATE KNEW IT
>     
>                                       '90 Probe Sheds Light On Waste 
>     Scandal
>     
>          BY JIM WOOLF
>          Copyright 1997, THE SALT LAKE TRIBUNE
>     
>             New concerns about the relationship between former state 
>     radiation-control director Larry F. Anderson and
>          Envirocare of Utah owner Khosrow Semnani are revealed in a 1990 
>     internal state memorandum obtained this
>          week by The Salt Lake Tribune.
>     
>             ``Our conclusion is that Mr. Anderson has not retained 
>     objectivity concerning Envirocare,'' said the memo
>          prepared for the then-Utah Division of Environmental Health. 
>     ``Our investigation has not revealed the cause of this
>          lack of objectivity.''
>     
>             The cause now is clear: Anderson was receiving secret payments 
>     from Semnani. The businessman said he paid
>          Anderson $600,000 in cash, gold and real estate over eight years 
>     to keep the state regulator from causing
>          problems for his Tooele County disposal site for low-level 
>     radioactive waste. Anderson contends he had a valid
>          consulting contract with Semnani and recently sued for more than 
>     $5 million in unpaid compensation.
>     
>             Issues raised in the 1990 investigation include:
>     
>             -- Anderson's efforts in 1987 to ensure that Semnani was able 
>     to purchase 543 acres of state-owned land for
>          the disposal facility. Anderson told investigators that he and 
>     other state regulators were ``advocates for
>          Envirocare because of the nation's need for a place to dispose of 
>     low-level radioactive waste.''
>     
>             -- Anderson's assistance to Semnani in purchasing a 
>     state-owned railroad-car-unloading device. A 1992
>          legislative audit said this purchase appeared to bypass normal 
>     state surplus-property regulations, but the 1990
>          investigation provides more details. For example, Anderson 
>     apparently hand-carried Semnani's purchase forms to
>          the state surplus-property office.
>     
>             -- When another Tooele County disposal company -- USPCI Inc. 
>     -- complained about not being given a
>          chance to bid on the railroad-car-unloading device, Semnani paid 
>     that company $100,000 to avoid legal action,
>          said the memo.
>     
>             Semnani said Wednesday that the $100,000 payment was to settle 
>     ``a number of outstanding issues'' between
>          Envirocare and USPCI. The railroad-car dumper was just one of 
>     them.
>     
>             -- Anderson's lax enforcement of state rules affecting 
>     Envirocare. ``If there is a choice between treating
>          Envirocare strictly or leniently, he will treat the organization 
>     leniently,'' said the memo.
>     
>             -- Semnani's special treatment of radiation-control staff. 
>     ``On one occasion, Mr. Semnani bought pizza for the
>          entire Bureau of Radiation Control. On another occasion, he took 
>     the bureau to lunch at Cafe Pierpont [in
>          downtown Salt Lake City]. He buys Christmas presents for members 
>     of the bureau. Last year [1989], it was ties
>          for the men, perfume for the women,'' said the memo.
>     
>             -- Anderson's efforts to block disposal projects in Utah and 
>     Colorado that could have competed with
>          Envirocare. For example, he objected to Nuclear Fuel Service's 
>     (NFS) plans to move material similar to
>          uranium-mill tailings to a closed-down uranium mill at Ticaboo in 
>     Garfield County because it was ``difficult to find
>          a corporate structure'' for NFS and the company appeared to be 
>     ``based out of the Cayman Islands or
>          somewhere.''
>     
>             ``He's lying through his teeth,'' Paul Schutt, chief executive 
>     officer for NFS, said Wednesday. ``For 30 years
>          we've been providing nuclear fuel to the U.S. Navy. If we were 
>     based in the Cayman Islands, the Navy would put
>          me in jail.'' The company is based in Delaware.
>     
>             Anderson's attorney, James C. Haskins, declined Wednesday to 
>     discuss these issues. Anderson declined to be
>          interviewed by a Tribune reporter who visited his home in 
>     Mesquite, Nev.
>     
>             Despite the long list of concerns turned up by the 
>     investigators in 1990, they could find no concrete evidence
>          of wrongdoing by Anderson. Rather than launch further 
>     investigations that might have uncovered the secret
>          arrangement between Anderson and Semnani, the issue was dropped.
>     
>             ``In hindsight, I wish we would have continued to 
>     investigate,'' said Ken Alkema, who then was director of the
>          Division of Environmental Health. ``But it [the investigation] 
>     didn't give us the basis for pursuing it any farther.''
>     
>             Alkema, who now is director of governmental relations for 
>     Envirocare, said immediately after the investigation
>          ended, he ordered all copies of the report destroyed to protect 
>     the anonymity of the staff members raising
>          concerns about Anderson. As a result, criminal investigators who 
>     have spent the past couple of months looking
>          into ties between Anderson and Semnani believed the document was 
>     gone.
>     
>             However, at least one copy survived and was provided to The 
>     Tribune. It is a draft of the memo that has
>          editing marks correcting spelling and other errors.
>
>