The OPG/Kincardine Hosting Agreement for a Deep Geologic Repository for OPG's Low- and Intermediate-Level Waste

Abstract

A Hosting Agreement has been reached between Ontario Power Generation and the Municipality of Kincardine for the purpose of siting a long-term management facility for low- and intermediate-level radioactive waste at the Western Waste Management Facility. Following an independent review of the feasibility of three options for a long-term facility at the site, including a review of the safety, geotechnical feasibility, social and economic effects and potential environmental effects, Kincardine passed a resolution indicating their preference for a Deep Geologic Repository. A Host Community Agreement has been negotiated based on this preference, and on information that had been gathered from municipal authorities at other locations that have hosted similar facilities. The Hosting Agreement includes financial compensation, totalling $35.7 million (Canadian 2004) to the Municipality of Kincardine and to four surrounding municipalities. The financial aspects include lump sum payments based on achieving specific project milestones as well as annual payments to each of the municipalities. The payments are indexed to inflation, and are also contingent on the municipalities acting reasonably and in good faith during the licencing process of the proposed facility. In addition to the fees, the Agreement includes provision for a Property Value Protection Planthat would provide residents with compensation in the event that there is depreciation in property value shown to directly result from a release from the proposed facility. New permanent OPG jobs supporting the project would be located at the site. OPG and Kincardine will support a centre of nuclear excellence.