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City of West Chicago, Illinois v. NRC

United States Court of Appeals, Seventh Circuit
701 F.2d 632 (1983)
ELI5:

Rule of Law:

Section 189(a) of the Atomic Energy Act, which requires the Nuclear Regulatory Commission (NRC) to grant a "hearing" upon request for a materials license amendment, does not mandate a formal, trial-type adjudicatory hearing under the Administrative Procedure Act. An informal hearing, consisting of the submission and review of written materials, may satisfy the statutory requirement.


Facts:

  • From 1967 to 1973, Kerr-McGee Corporation (KM) operated a milling facility in West Chicago for the production of thorium.
  • The plant's closure in 1973 left approximately 5 million cubic feet of contaminated waste material, including building rubble and tailings, on the site.
  • KM held a "source material" license from the Nuclear Regulatory Commission (NRC) authorizing it to possess and store thorium ores on the site.
  • In March 1980 and March 1981, KM made emergency requests to demolish two buildings on the site, which the NRC granted.
  • In September 1981, the NRC issued Amendment No. 3 to KM's license, authorizing the demolition of six additional buildings in a non-emergency situation.
  • Amendment No. 3 also authorized KM to receive and store on-site contaminated material that had previously been taken from the site for use as landfill.

Procedural Posture:

  • The City of West Chicago filed suit in the U.S. District Court for the Northern District of Illinois against the Nuclear Regulatory Commission (NRC) and Kerr-McGee.
  • The City sought to set aside Amendment No. 3 and compel the NRC to issue an Environmental Impact Statement (EIS) and a final decommissioning plan for the site.
  • The district court temporarily enjoined Kerr-McGee's activities and ordered the NRC to provide notice to the City and consider any hearing request.
  • After receiving written submissions from the City, the NRC issued a final order denying the City's request for a formal, trial-type hearing and re-issuing Amendment No. 3.
  • The district court then dismissed the City's lawsuit for lack of subject-matter jurisdiction, finding that the U.S. Court of Appeals had exclusive jurisdiction to review the NRC's final order and that the other claims were not ripe.
  • The City of West Chicago (as petitioner/appellant) appealed both the NRC's final order and the district court's dismissal to the U.S. Court of Appeals for the Seventh Circuit.

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Issue:

Does Section 189(a) of the Atomic Energy Act require the Nuclear Regulatory Commission to conduct a formal, trial-type hearing, consistent with Sections 554, 556, and 557 of the Administrative Procedure Act, before issuing an amendment to a source materials license?


Opinions:

Majority - Chief Judge Cummings

No, Section 189(a) of the Atomic Energy Act does not require a formal, trial-type hearing for a source materials license amendment. The statutory term "hearing" does not, by itself, trigger the formal adjudication requirements of the Administrative Procedure Act (APA). The APA's formal hearing provisions are only invoked when the governing statute requires a decision to be "determined on the record after opportunity for an agency hearing." The Atomic Energy Act lacks this specific "on the record" language, and its legislative history does not clearly indicate a congressional intent to require formal hearings for materials licenses, as distinguished from more significant actions like reactor licensing. Therefore, the NRC acts within its authority and satisfies due process by providing an informal hearing process where interested parties, like the City of West Chicago, have a meaningful opportunity to submit written evidence and arguments.



Analysis:

This decision solidifies the concept of 'informal adjudication' within administrative law, clarifying that a statutory requirement for a 'hearing' does not automatically trigger the formal, trial-type procedures of the Administrative Procedure Act. It affirms agency discretion to tailor hearing procedures to the specific context, distinguishing between high-stakes proceedings like reactor licensing and lower-stakes matters like materials license amendments. This precedent provides agencies with greater flexibility and reduces administrative burdens, but also places the onus on courts to ensure that even informal procedures meet due process standards by providing a meaningful opportunity to be heard.

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