Plutonium mess: SC wrangling with DOE over nuclear waste facility, Russia grows angry

RT | April 8, 2016

Despite concessions from the Department of Energy, South Carolina has no intention of dropping its lawsuit against the DOE for failing to build a nuclear waste disposal plant. The delay is also scuppering a deal the US made to treat Russia’s plutonium.

Approved by Congress as far back as 1998, the Savannah River Site’s Mixed Oxide Fuel Fabrication Facility, or MOX, is designed to turn weapons-grade plutonium into power plant reactor fuel. Moscow and Washington signed a deal in 2000 under which 34 tons of nuclear waste would be shipped from Russia and then processed at the facility.

Since then, everything has gone wrong for MOX. The project’s cost was initially estimated at $1.7 billion, but by 2013 it had risen to $7.7. In addition, approximately $5 billion, three times the original estimate, has already been spent since construction began in 2007. South Carolina Senator Lindsey Graham and contractors working on the project say it is currently 70 percent complete.

However, MOX was never favored by the Obama administration. When the US president came to power, he ordered the closure of the proposed facility to make way for an alternative plant in New Mexico, which would use a cheaper processing method known as dilution and disposal. The DOE also maintains that MOX is only 40 percent complete and would cost $1 billion a year to operate.

“We are in a situation where the MOX approach has extreme uncertainties,” Energy Secretary Ernest Moniz told a Senate Appropriations Subcommittee last month. Moniz said previously that the Russian contract could be moved to the New Mexico facility.

The stakes were raised after a clause in the contract between the state and the federal government was activated at the beginning of the year, when the government failed to remove one ton of plutonium from South Carolina as stipulated. The fine for the delay is $1 million per day, with a cap of $100 million.

South Carolina is now lodging a lawsuit to recover the money from the federal budget and make sure that MOX is completed.

The DOE has attempted to compromise by offering to remove 6 tons of plutonium unrelated to the Russian deal, but South Carolina Governor Nikki Haley says the state will not abandon its legal claim, as “the DOE has not lived up to promises made in the past.”

‘Not what we agreed on,’ says Putin

While South Carolina squeezes from one side, Washington is also facing mounting pressure from Russia on the other.

On Thursday, Vladimir Putin voiced Moscow’s growing frustration, both with the delay and the US’ decision to turn to dilution and disposal.

“We signed an agreement that the plutonium will be processed in a certain way, for which facilities would be purpose built,” the Russian President said during a media session. “We have met our commitments, and constructed the necessary facilities. The US has not.”

For Russia, the use of a cheaper processing method constitutes a breach of contract.

“With the dilution and disposal method, the nuclear fuel retains its breakout potential, so it can extracted, processed and weaponized again. That is not what we agreed on,” said Putin, who personally oversaw the signing of the original deal during his first term as the Russian President.

Despite Putin’s unequivocal rhetoric, Washington officials have been maintaining their best poker faces so far.

“Accommodating a new US method would not require renegotiation of the agreement. We will not speculate on Russian intentions behind the reported remarks,” said State Department spokesperson Jennifer Bavisotto on Friday.