ML061930319

Review of Decommissioning Funding Response for Mit Research Reactor

ML061930319
Person / Time
Site:	MIT Nuclear Research Reactor
Issue date:	07/05/2006
From:	Bernard J Massachusetts Institute of Technology (MIT)
To:	Office of Nuclear Reactor Regulation
References
Download: ML061930319 (5)

Text

MIT NUCLEAR REACTOR LABORATORY AN MIT INTERDEPARTMENTAL CENTER John A. Bernard Mail Stop: NW12-208a Phone: 617 2534202 Director of Reactor Operations 138 Albany Street Fax: 617 253-7300 Cambridge, MA 02139 Email: bemardj@mit.edu July 5, 2006 U.S. Nuclear Regulatory Commission Washington, DC 20555 Re: Review of Decommissioning Funding Response for MIT Research Reactor, License No. R-37, Docket No. 50-20

Dear Sir or Madam:

The Massachusetts Institute of Technology has recently completed a review of the projected costs associated with the decommissioning of the MIT Research Reactor and wishes to increase the funds held in escrow to $23M for License No. R-37. The basis for this figure was the application of standard cost-indices to the estimate that was prepared originally by GE and later re-established by Duke Engineering.

Paragraph 4 of the amendment dated November 30, 2005, to the original agreement requires that: 1) MIT give 30 days notice of any change to both the escrow agent and the NRC; and 2) NRC "approve the amendment in a writing delivered to the escrow agent." A copy of the November 30, 2005, amendment is enclosed for your reference. MIT hereby requests that NRC so notify the escrow agent. It would be most appreciated if MIT were copied on that notification.

Please contact the undersigned if further information is required. Also, it should be understood that MIT has no intention of decommissioning the MIT Research Reactor.

Sincerely, John A. Bernard JAB/koc Enclosure Cc: David Moncton, Director of the MIT Nuclear Reactor Laboratory Margaret Brill, Contracts Counsel, MIT Senior Counsel's Office Robert Davine, Administrative Officer, MIT Nuclear Reactor Laboratory Alexander Adams, Senior Project Manager, NRC Research and Test Reactors Section

AMENDED ESCROW AGREEMENT This Amended Escrow Agreement, dated as of tjoe,tb ý.* 0 , 2005, amends the Escrow Agreement originally dated as of August 18, 1990, as amended and restated as of March 31, 1994, and as further amended and restated as of March 21; 1997 (together, the "Escrow Agreement"), between Massachusetts Institute of Technology ("M.I.T. ") and U.S. Bank National Association (the "Escrow Agent"), successor to State Street Bank. and Trust Company which, in turn, was successor to The First National Bank of Boston, pursuant to Paragraph 12 of the Escrow Agreement.

1.' Paragraph 1 of the Escrow Agreement is hereby amended in its entirety to read as follows:

"i. Establishment of Escrow Account M.I.T. hereby establishes an escrow account (the "Escrow Account") with the Escrow Agent pursuant to the terms of this agreement, to provide financial assurance for decommissioning of two M.I.T. facilities, in the amounts shown below:

First Facility:

Facility name: Massachusetts Institute of Technology Address: 77 Massachusetts Avenue Cambridge, Massachusetts 02139 License number: SNM-986 Applicable NRC Regulations: 10 C.F.R. 70 Estimated Decommissioning Costs: $1,125,000.00 Amount of Financial Assurance Provided: $1,125,000.00

Second Facility:

Facility name: Massachusetts Institute of Technology Research Reactor Address: 138 Albany Street Cambridge, Massachusetts 02139 License number: R-37 Applicable NRC Regulations: 10 C.F.R. 50 Estimated Decommissioning Costs: $20,000,000.00 Amount of Financial Assurance Provided: $20,000,000.00"

2. The first sentence of Paragraph 2 of the Escrow Agreement is hereby amended to read as follows:

"It is hereby acknowledged by the parties that cash or other liquid assets with a value of

$21,125,000.00 have been delivered to the Escrow Agent, and they, or assets of equivalent value, less any amounts disbursed pursuant to Paragraph 4 of this agreement, will remain in the Escrow Account until one of the conditions stated in Paragraph 3 of this agreement has

.been satisfied."

3. The third sentence under the heading "Escrow Account Management" in Paragraph 6 of the Escrow Agreement, beginning with the words "Interest earnings shall be," is hereby amended to read as follows:

"Interest earnings shall be paid immediately upon receipt to Massachusetts Institute of Technology Pool C custody account #42312967 at U.S. Bank National Association, with advice to Stephen Gorman, MIT Investment Management Company, Office of the Treasurer, 238 Main Street, Siiite 200, Cambridge, Massachusetts 02142, or as M.I.T. otherwise directs the Escrow Agent, provided that immediately after such interest payment the market value of the Escrow Account is equal to or greater than the Required Balance.

is hereby amended in its entirety to read as

4. Paragraph 12 4.Paragraph of the 12 of Escrow Agreement the Escrow Agreement is hereby amended in its entirety to read as follows:

12. Amendment to this Agreement.

This Agreement may be amended by an instrument in writing executed by M.I.T. and the Escrow Agent provided that M.I.T. has given 30 days prior written notice to the Escrow Agent and the NRC and the NRC has approved the amendmeht in a writing delivered to the Escrow Agent."

5. Paragraph 17 of the Escrow Agreement is hereby amended in its entirety to read as follows:

"17. Notices If any notice or communication is required to be given hereunder it shall be deemed given if in wViting and mailed by certified or registered mail, postage prepaid, return receipt requested:

If to Escrow Agent: U.S. Bank National Association Corporate Trust Services Mailcode: EX-MA-FED One Federal Street, 3d Floor Boston, MA 02110 Attention: 1990 M.I.T. Escrow If to M.I.T.: Massachusetts Institute of Technology Office of the Treasurer 238 Main Street, Suite 200 Cambridge, Massachusetts 02142 Attention: Mr. Allan S. Bufferd

.Office of the Treasurer If to NRC: U.S. Nuclear Regulatory Commission Washington, D.C. 20555"

6. It is the intention of the parties hereto that all provisions, terms and conditions contained in the Escrow Agreement originally dated as of August 18, 1990, as amended and restated as of March 31, 1994, and March 21, 1997, which have not been amended or modified as set forth above, shall remain in full force and effect.

WITNESS the execution hereof under seal as of the date above first written.

U.S. BANK NATIONAL MASSACHUSETTS INSTITUTE ASSOCIATION OF TECHNOLOGY By By Alan &MAW Name TODD R. DiNEZZA Name Title A&dst Vice ]Prjoe lrm ni Title 1"ImfteWwv-Date If L,.o bo0-,- Date t " Z.V *"

The Commonwealth of Massachusetts

,ss. Date: I I ] &0 _ý2-, 6 Then personally appeared the above named 2-.4' ý"A)kP7Z-C( , being an Authorized Officer of U.S. Bank National Association and acknowledged tIe foregoing to be the free act and deed of U.S. Bank National Association, before me RACHEl. M. SYLVIA /

N(YOARY PUBI.C (

CjMMONWVUALTII OF MASSACHIUSUrIS 2011 VY C.0M..)iSON IAPI'RES HFORUAIY IKV My commission expires:

The Commonwealth of Massachusetts

,ss. Date: ~~ ~ ,12raJ 20Q Then personally appeared the above named /llaei S. &,L4jL-rf, being an Authorized Officer of the Massachusetts Institute of Technology and acknowledged the foregoing to be the free act and deed of said Massachusetts Institute of Technology, before me Myotamiinb pi' My commission expires:

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