ML101660132

Armed Forces Radiobiology Research Institute, Request for Additional Information Regarding License Renewal Application Financial Qualifications (Tac No. ME1587)

ML101660132
Person / Time
Site:	Armed Forces Radiobiology Research Institute
Issue date:	06/23/2010
From:	Alexander Adams Research and Test Reactors Licensing Branch
To:	Melanson M US Dept of Defense, Armed Forces Radiobiology Research Institute
Meyer W, NRR/DPR/PRLB, 301-415-0897
References
TAC ME1587
Download: ML101660132 (6)

Text

June 23, 2010 Colonel Mark A. Melanson, PhD, Director Armed Forces Radiobiology Research Institute 8901 Wisconsin Avenue Bethesda, Maryland 20889-5603

SUBJECT:

ARMED FORCES RADIOBIOLOGY RESEARCH INSTITUTE - REQUEST FOR ADDITIONAL INFORMATION REGARDING FINANCIAL QUALIFICATIONS FOR THE LICENSE RENEWAL REVIEW (TAC NO. ME1587)

Dear Colonel Melanson:

The U.S. Nuclear Regulatory Commission (NRC) is continuing its review of your application for the renewal of Facility Operating License No. R-84 for the Armed Forces Radiobiology Research Institute TRIGA reactor, dated June 24, 2004 and supplemented by additional information March 4, 2010 (a redacted version of the safety analysis report and supplemental information is available on the NRCs public Web site at www.nrc.gov under Agencywide Documents Access and Management System Accession Nos. ML101650415 and ML101650422).

We require additional information and clarification on questions that have arisen during our review. Please provide responses to the enclosed request for additional information within 60 days of the date of this letter. In accordance with Title 10 of the Code of Federal Regulations (10 CFR) 50.30(b), you must execute your response in a signed original document under oath or affirmation.

If you have any questions about this review or if you need additional time to respond to this request, please contact me by telephone at 301-415-1127 or by electronic mail at Alexander.Adams@nrc.gov.

Sincerely,

/RA/

Alexander Adams, Jr., Senior Project Manager Research and Test Reactors Licensing Branch Division of Policy and Rulemaking Office of Nuclear Reactor Regulation Docket No. 50-170

Enclosure:

As stated cc w/encl: See next page

Armed Forces Radiobiology Research Docket No. 50-170 cc:

Director, Maryland Office of Planning 301 West Preston Street Baltimore, MD 21201 Montgomery County Executive 101 Monroe Street, 2nd Floor Rockville, MD 20850 Mr. Stephen I. Miller Reactor Facility Director Armed Force Radiobiology Research Institute 8901 Wisconsin Avenue Bethesda, MD 20889-5603 Environmental Program Manager III Radiological Health Program Air & Radiation Management Adm.

Maryland Dept of the Environment 1800 Washington Blvd.,Suite 750 Baltimore, MD 21230-1724 Rich McLean, Manager Nuclear Programs Maryland Department of Natural Resources Tawes B-3 Annapolis, MD 21401 Director Air & Radiation Management Adm.

Maryland Dept of the Environment 1800 Washington Blvd., Suite 710 Baltimore, MD 21230 Test, Research, and Training Reactor Newsletter University of Florida 202 Nuclear Sciences Center Gainesville, FL 32611

ML101660132 *concurrence by e-mail NRR-088 Office PRLB:PM*

PRLB:LA PFAB:FA PRLB:BC PRLB:PM Name WMeyer GLappert JSimpson JQuichocho AAdams Date 6/15/10 6/16/2010 6/18/2010 6/21/2010 6/23/2010

ENCLOSURE OFFICE OF NUCLEAR REACTOR REGULATION REQUEST FOR ADDITIONAL INFORMATION REGARDING THE FINANCIAL QUALIFICATIONS FOR THE RENEWED LICENSE FOR THE ARMED FORCES RADIOBIOLOGICAL RESEARCH INSTITUTE TRIGA REACTOR FACILITY LICENSE NO. R-84; DOCKET NO. 50-170 As required by Title 10 of the Code of Federal Regulations (10 CFR) Section 50.33(f)(2),

[a]pplicants to renew or extend the term of an operating license for a non-power 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 June 24, 2004, Armed Forces Radiobiological Research Institute (AFFRI, the applicant) application (the application) for a renewed license for the AFRRI TRIGA reactor facility.

1.

The staff will analyze AFRRIs financial statements for the current year, which are required by 10 CFR 50.71(b), to determine if the applicant is financially qualified to operate the AFRRI TRIGA reactor facility. Since AFRRIs financial statements are not included in the application, please provide a copy of the latest financial statements for the staffs review.

2.

As required by 10 CFR 50.33(d)(2), The applicant shall submit estimates for total annual operating costs for each of the first five years of operation of the facility. Since the information provided in the 2004 submittal is now out of date, please provide the following additional information:

(a)

The estimated operating costs for the AFRRI TRIGA reactor facility for each of the fiscal years (FYs) 2012 thru FY2016 (the first five-year period after the projected license renewal date).

(b)

Confirm that AFRRIs primary source of funding to cover the operating costs for the above fiscal years will be from the Congressional appropriations process as further delegated within the Department of Defense as stated in the application.

3.

The application indicates that the cost to decommission the AFRRI TRIGA reactor facility was $13,300,000 in 2004 dollars. In order for the U. S. Nuclear Regulatory Commission (NRC) staff to complete its review of the decommissioning cost estimate, please provide the following information:

(a)

A current cost estimate (2011 dollars) for the AFRRI TRIGA reactor facility to meet the NRCs radiological release criteria for decommissioning the facility for unrestricted use to comply with 10 CFR 50.75(d)(2). Accordingly, describe the basis on how the cost estimate was developed, show costs specifically broken down into the categories of labor, waste disposal, other items (such as energy, equipment, and supplies), and include a contingency factor of at least 25%.

(b)

A description of the means of adjusting the cost estimate and associated funding level periodically over the life of the facility, to comply with 10 CFR 50.75(d)(2)(iii).

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.

(c)

A numerical example showing how the 2011 decommissioning cost estimate will be updated periodically in the future to comply with 50.75(d)(2)iii.

4.

The application indicates that [t]he source of funding to cover decommissioning of the reactor would be a supplemental Congressional appropriation requested when necessary. Where the applicant intends to use a statement of intent (SOI) as the method to provide decommissioning funding assurance, as provided for by 10 CFR 50.75(e)(1)(iv), the 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 Federal government organization and that the decommissioning funding obligations of the applicant are backed by the Federal 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 cost (2010 dollars) 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 AFRRI is Federal agency and a Federal government licensee under 10 CFR 50.75(e)(2)(iv).

(c)

A statement as to whether the decommissioning funding obligations for the AFRRI TRIGA reactor facility are backed by the Federal 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 Federal government, 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 Federal government.

(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 an official AFRRI delegation of authority showing that the signator of the SOI is authorized to bind AFRRI financially, at least with respect to funding the decommissioning of the AFRRI TRIGA reactor facility.