New faces at Envirocare

There is reason for angst following the news that Khosrow Semnani is selling Envirocare of Utah, the only commercial radioactive waste site in the state, to a group of investors from Utah and New York.

Semnani, who came to Utah from Iran, is the embodiment of the American success story. He is not universally liked, but he is a Utahn with a family and a familiar face.

For some who dislike and mistrust Semnani, the feeling is that the state is better off with the devil it knows than with a bunch of new players. And for those who have grown to admire Semnani and his safety record, there are worries about a new ownership group that may not be as careful.

The fears of both can be summed up as a concern that Utah could find itself as a dumping ground for hotter and hotter waste, which could jeopardize the state's reputation as much as its environment.

No one can deny that Semnani has been controversial at times. His line of work, together with worries that he contributed lots of money to a variety of state lawmakers in order to protect his interests, led to a voter initiative a few years ago that would have raised taxes on Envirocare exclusively. Most voters felt that was unfair, and they defeated it. In addition, he was involved in a strange scandal years ago involving payments to a state regulator. The regulator finally was sent to jail on tax charges but was acquitted of extortion. Semnani, meanwhile, pleaded guilty to a misdemeanor tax charge and paid a $100,000 fine.

But it is also true that Envirocare has never been an environmental pariah along the lines of some other companies, such as Tooele County's Magnesium Corporation of America, which used to top the list of the nation's worst polluters. Envirocare exists because Salt Lake County wanted to rid itself of several tons of contaminated dirt at the old Vitro tailings site and it had nowhere to put the stuff. Semnani saw an opportunity to make money while providing a needed service. Americans create tons of low-level radioactive waste each year and need a place to put it all.

Steve Creamer, the main Utahn in Envirocare's new ownership group, is familiar to many in the Legislature and the waste-disposal business, but the New York investor, Lindsay Goldberg & Bessemer, is less known. They have a responsibility now to demonstrate that they have the state's best interests in mind.

We're glad Gov.-elect Jon Huntsman says he is committed to opposing any efforts to increase the levels of radioactivity accepted by Envirocare. We are certain, however, that the radioactive waste business is going to continue to grow. Investors don't throw money at losing causes. That means state regulators must keep close track of how Envirocare's new owners conduct themselves.