ML092990392

Texas A&M University, Request for Additional Information (Financial Qualification), License Renewal

ML092990392
Person / Time
Site:	05000128
Issue date:	11/13/2009
From:	William Schuster Research and Test Reactors Licensing Branch
To:	Reece W Texas A&M Univ
schuster W, NRR/DPR/PRTA 415-3934
References
TAC ME1584
Download: ML092990392 (6)

Text

November 13, 2009 Dr. W. D. Reece, Director Nuclear Science Center Texas Engineering Experiment Station Texas A&M University 1095 Nuclear Science Road F. E. Box 89, M/S 3575 College Station, Texas 77843

SUBJECT:

TEXAS A&M UNIVERSITY - REQUEST FOR ADDITIONAL INFORMATION REGARDING THE LICENSE RENEWAL FOR THE NUCLEAR SCIENCE CENTER REACTOR (TAC NO. ME1584)

Dear Dr. Reese:

We are continuing our review of the Application for Renewal of Facility Operating License No.

R-83, Docket No. 50-128 for the Texas A&M University Nuclear Science Center TRIGA research reactor. The application was submitted on February 27, 2003.

During our review of the Safety Analysis Report for the application, questions have arisen for which we require additional information and clarification. Please provide responses to the enclosed request for additional information as discussed during our August 27, 2009 teleconference.

In accordance with Title 10 of the Code of Federal Regulations Section 50.30(b), your response must be executed in a signed original under oath or affirmation. Following receipt of the request we will continue our evaluation of your request. If you have any questions regarding this review, please contact me at 301-415-3934.

Sincerely,

/RA/

William C. Schuster IV, Project Manager Research and Test Reactors Branch A Division of Policy and Rulemaking Office of Nuclear Reactor Regulation Docket No. 50-128 License No. R-83

Enclosure:

1. Request for Additional Information cc w/encl: See next page

ML092990392 NRR-088 OFFICE PRTA: PM PRTA: LA PFPB PRTA: BC NAME WSchuster GLappert JSimpson KBrock DATE 10/26/2009 11/03/2009 11/03/2009 11/13/2009

Texas A&M University Docket No. 50-128 cc:

Mayor, City of College Station P.O. Box Drawer 9960 College Station, TX 77840-3575 Governors Budget and Planning Office P.O. Box 13561 Austin, TX 78711 Texas A&M University System ATTN: Jim Remlinger, Associate Director Nuclear Science Center Texas Engineering Experiment Station F. E. Box 89, M/S 3575 College Station, Texas 77843 Radiation Program Officer Bureau of Radiation Control Dept. Of State Health Services Division for Regulatory Services 1100 West 49th Street, MC 2828 Austin, TX 78756-3189 Susan M. Jablonski Technical Advisor Office of Permitting, Remediation & Registration Texas Commission on Environmental Quality P.O. Box 13087, MS 122 Austin, TX 78711-3087 Test, Research and Training Reactor Newsletter 202 Nuclear Sciences Center University of Florida Gainesville, FL 32611

OFFICE OF NUCLEAR REACTOR REGULATION REQUEST FOR ADDITIONAL INFORMATION THE TEXAS ENGINEERING EXPERIMENT STATION/TEXAS A&M UNIVERSITY SYSTEM NUCLEAR SCIENCE CENTER LICENSE NO. R-83 DOCKET NO. 50-128 Pursuant to Title 10 of the Code of Federal Regulations (10 CFR) Section 50.33(f)(2),

Applicants to renew or extend the term of an operating license for a nonpower reactor shall include the financial information that is required in an application for an initial license. To comply with this requirement, please provide the following updated and supplemental information to the Texas Engineering Experiment Station/Texas A&M University System (the TEES, the applicant) 2003 application (the application) for a renewed facility operating license for the TEES Nuclear Science Center (the NSC).

1. The U. S. Nuclear Regulatory Commission (NRC) staff will analyze the financial statements for the current year, which are required under 10 CFR 50.71(b), to determine if the applicant is financially qualified to operate the NSC. Since TEESs financial statements are not included with the application, please provide a copy of the latest financial statements.

2. Pursuant to 10 CFR 50.33(f)(2), the applicant shall submit estimates for total annual operating costs for each of the first five years of operations of the facility. Since the information included in the application is now out of date, please provide the following additional information:

(a) The estimated operating costs for each for each of the fiscal years (FY) 2011 through 2015 (the first five-year period after the projected license renewal date).

(b) The NSCs primary source(s) of funding to cover the operating costs for the above FY.

3. The application indicates that the cost to decommission the NSC will be between $3 million and $8 million, based on a University of Wisconsin decommissioning cost estimate for decommissioning of a similar facility. Since certain information is needed regarding the eventual decommissioning of the NSC facility, the staff requests that TEES update the 2003 application to include the following information:

(a) Pursuant to 10 CFR 50.75(d)(2), develop a current cost estimate in 2010 dollars to meet the NRCs radiological release criteria for decommissioning the NSC for unrestricted use; describe the basis on how the cost estimate was developed; show costs in current dollar amounts, specifically broken down into the ENCLOSURE

categories of labor, waste disposal, other items (such as energy, equipment, and supplies); and a contingency factor of at least 25 percent.

(b) Provide a statement of the decommissioning method to be used (e.g., DECON, or other method).

(c) To comply with 10 CFR 50.75(d)(2)(iii), the applicant must provide a description of the means of adjusting the cost estimate and associated funding level periodically over the life of the facility. Since the application does not provide this information, please update the application to include a full description of the method to be used as the means of adjusting the cost estimate and associated funding level periodically over the life of the facility.

(d) Provide a numerical example showing how the 2010 decommissioning cost estimate will be updated periodically in the future.

4. The application states that TEES is a state agency and will be able to obtain the funding for decommissioning when necessary to decommission the facility. Based on this statement, the NRC staff infers that TEES intends to use a statement of intent (SOI) to provide decommissioning funding assurance. Where the applicant intends to use a SOI as the method to provide decommissioning funding assurance, as provided for by 10 CFR 50.75(e)(1)(iv), the NRC staff must find that the applicant is a Federal, State, or local government licensee. To make this finding, the applicant must state that it is a State government organization and that the decommissioning funding obligations of the applicant are backed by the State government, and also provide corroborating documentation. Further, the applicant must provide documentation verifying that the signator of the SOI is authorized to execute said document that binds the applicant. This document may be a governing body resolution, management directives, or other form that provides an equivalent level of assurance. As the application does not include all of the above information, please submit the following:

(a) An updated SOI, which includes: the date of submittal of the SOI; the current (2010) cost estimate for decommissioning; a statement that funds for decommissioning will be obtained when necessary; typed name and title of the signator, and original signature of the signator; and the signators oath or affirmation attesting to the information.

(b) Documentation that corroborates the statement in the application that TEES is a State agency and State of Texas government licensee under 10 CFR 50.75(e)(2)(iv).

(c) A statement as to whether the decommissioning funding obligations for the NSC (through TEES) are backed by the State of Texas government. The application must also present information that corroborates this statement. For example, the documentation may be a copy of or complete citation to a state statute that expressly provides that the obligations, or at least the decommissioning funding obligations, of the applicant are obligations backed or supported by the full faith and credit of the State of Texas, or an opinion of the applicants General Counsel

with citations to statutes, regulations, and/or case law that the obligations, or at least with respect to the decommissioning funding obligations, of the applicant are obligations backed or supported by the full faith and credit of the State of Texas.

(d) Documentation verifying that the signator of the SOI is authorized to execute such a document that binds the applicant financially. For example, provide a copy of the TEES governing board or equivalent resolution that shows that the signator of the SOI has been authorized by TEES to bind TEES financially, at least with respect to funding the decommissioning of the NSC, or provide a copy of an official State of Texas delegation of authority showing that the signator of the SOI is authorized to bind TEES financially, at least with respect to funding the decommissioning of the NSC.