Khosrow B. Semnani has stepped down as president of Envirocare Inc. as part of a consent agreement to preserve the company's contracts with the U.S. Department of Energy.

Semnani also resigned from the Utah Radiation Control Board, Envirocare Executive Vice President Charles Judd announced Wednesday.However, Judd, who will succeed Semnani as president, said Semnani will retain his ownership of the firm but will play no role in Envirocare management for up to three years.

According to Judd, the DOE required Semnani step down because of allegations surrounding pending court cases involving Semnani's relationship with Larry Anderson, former director of the Utah Division of Radiation Control.

Envirocare depends on DOE contracts for its radioactive-waste business. The Clive facility is one of only three radioactive-waste dumps in the nation.

It was revealed in a lawsuit filed last year that Semnani entered into a secret arrangement with Anderson in 1987 that promised the regulator $100,000 up front plus a share of Envirocare's revenues if landfill operations got off the ground. Anderson received as much as $600,000 in cash, gold coins and a condominium in Park City, according to court documents.

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Since then, state and federal authorities have investigated the arrangement for possible criminal wrongdoing. Regulators have also been reviewing actions taken with regard to Envirocare.

In a statement released through Envirocare, Semnani said his decision to resign was "painful, but necessary to protect the future of the employees who are responsible for (Envirocare's) success as well as preserving the tax base of Tooele County and the state of Utah."

He emphasized his actions are not in any way an admission of wrongdoing and that the consent agreement with the DOE acknowledges that fact.

Judd said he would continue to operate Envirocare in a "safe and secure" manner.

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