ML103160100
| ML103160100 | |
| Person / Time | |
|---|---|
| Site: | Reed College |
| Issue date: | 11/05/2010 |
| From: | Frantz S Reed College |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| TAC ME1582 | |
| Download: ML103160100 (4) | |
Text
REED COLLEGE REACTOR FACI LITY 3203 Southeast Woodstock Boulevard Portland, Oregon 97202-8199 November 5, 2010 telephone 503/777-7222 fax 503/777-7274 email ATTN: Document Control Desk U S. Nuclear Regulatory Commission Washington, DC 20555-0001 Docket:
50-288 LicenseNo: R-112
Subject:
RAI TAC NO. ME 1583 reactor@reed.edu web http://reactor.rerd.edu Attached are the updated CFO Letter and Self-Guarantee Letter with the updated Decommissioning Costs. The response and attachments do not contain any sensitive information.
Please contact us if you have any questions. Thank you.
I declare under penalty of perjury that the foregoing is true and correct.
Executed on Stephen G. Frantz Director, Reed Research Reactor.
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Il REED COLLEGE October 29, 2010 OFFICE OF THE TREASURER U.S. Nuclear Regulatory Commission Office of Nuclear Material Safety and Safeguards 3203 Southeast Washington, DC 20555-0001 Woodstock Boulevard Portland, Oregon Attention: Self-Guarantee Decommissioning Request and Application 97202-8199 Re:
Request for Self-Guarantee Pursuant to 10 CFR Part 50, 10 CFR Part 70 and NUREG-1757, Vol.3 telephone 503/777-7506
Dear Sir/ Madam:
fax 503/777-7775 In my capacity as the Vice President and Treasurer of Reed College, a nonprofit college, I serve as Reed College's Chief Financial Officer. This letter is in support of Reed College's use of the self-guarantee financial test to demonstrate financial assurance, as specified in 10 CFR Part 50.
emcfaaulreed.edu Reed College has no parent company.
Reed College guarantees, through the self-guarantee submitted to demonstrate compliance under 10 CFR Part 50, the decommissioning of the following facility owned or operated by Reed College. The current cost estimates or certified amounts for decommissioning, so guaranteed, are shown:
Name of License #
Location of Facility Certified Amounts of Facility and Docket #
2010 Cost Estimates Reed R-112 3203 SE Woodstock Blvd.
$1,800,000 College 50-288 Portland, OR 97202 25% Contingency Fund
$450,000
$2,250,000 I hereby certify that Reed College is currently a going concern, and that it possesses positive tangible net worth in the amount of $430 million.
Reed College is not required to file a Form 10-K with the U.S. Securities and Exchange Commission for the latest fiscal year.
Reed College satisfies the following self-guarantee test:
- 1. Current bond rating of most recent uninsured, uncollateralized, and unencumbered issuance of this institution:
Rating: Aa2/VMIG1
" Name of rating service: Moody's Investors Service
- 2. Is the rating specified on line 1 "A" or better? Yes I hereby certify that the content of this letter is true and correct to the best of my knowledge.
Signature:
Name: Edwin 0. McFarlanyi
Title:
Vice President and Treasurer (Chief Financial Officer)
Date: October 29, 2010 5No
REED COLLEGE Financial Assurance for Cost of Decommissioning Activities Self-Guarantee Agreement 3203 Southeast Guarantee made by Reed College, a nonprofit college, organized under the laws of the State of Woodstock Boulevard Oregon, herein referred to as "guarantor," to the U.S. Nuclear Regulatory Commission, on behalf of Portland. Oregon the college as licensee.
97202-8199 Recitals telephone
- 1.
The guarantor has full authority and capacity to enter into this self-guarantee by the bylaws of 503/771-1112 the Trustees of Reed College.
- 2.
This self-guarantee is being issued to comply with regulations issued by NRC, an agency of the U.S. Government, pursuant to the Atomic Energy Act of 1954, as amended, and the Energy Reorganization Act of 1974. NRC has promulgated regulations in Title 10, Chapter I of the Code of Federal Regulations, Parts 50 and 70, which require that a holder of, or an applicant for, a materials license issued pursuant to 10 CFR Parts 50 and 70 provide assurance that funds will be available when needed for required decommissioning activities.
- 3.
The self-guarantee is issued to provide financial assurance for decommissioning activities for the licenses and facilities shown.
License #
Estimate based on Certified Amounts of and Docket #
License Description year 2010 dollars 2010 Cost Estimates R-112 Research and test reactor and related R-2 facilities located at Reed College,
$1,805,000.
$1,800,000 Portland, OR 97202 Subtotal
$1,800,000 25% contingency fund
$450,000 Total Estimated Costs:
$2,250,000
- 4.
The guarantor meets or exceeds the following financial test criteria for a nonprofit College that issues bonds. Specifically, the most recent rating as of 2009 for the college was AA-/A-I+ by Standard and Poor's and Aa2/VMIG1 by Moody's Investors Service, and agrees to comply with all notification requirements as specified in 10 CFR Part 50, and Appendix A to 10 CFR Part 30.
- 5.
The guarantor does not have a parent company holding majority control of its voting stock.
- 6.
Decommissioning activities as used below refer to the activities required by 10 CFR Part 50 for decommissioning of the facilities identified above.
- 7.
Pursuant to the guarantor's authority to enter into this guarantee, the guarantor guarantees to the NRC that the guarantor shall:
(a) carry out the required decommissioning activities, as required by the licenses listed above.
- 8.
The guarantor agrees to submit revised financial statements, financial test data annually within 90 days of the completion of our fiscal year-end audit.
- 9.
The guarantor agrees that if, at the end of any fiscal year before termination of this self-guarantee, it fails to meet the self-guarantee financial test criteria, it shall send within 90 days of the end of the fiscal year, by certified mail, notice to the NRC that it intends to provide
alternative financial assurance as specified in 10 CFR Part 30. Within 120 days after the end of the fiscal year, the guarantor shall establish such financial assurance.
- 10. The guarantor agrees that if it determines, at any time other than as described in Recital 9, that it no longer meets the self-guarantee financial test criteria or it is disallowed from continuing as a self-guarantor, it shall establish alternative financial assurance as specified in 10 CFR Part 50 within 30 days.
- 11. The guarantor, as well as its successors and assigns, agrees to remain bound jointly and severally under this guarantee notwithstanding any or all of the following: amendment or modification of the license or NRC-approved decommissioning funding plan for that facility, the extension or reduction of the time of performance of required activities, or any other modification or alteration of an obligation of the licensee pursuant to 10 CFR Parts 50 and 70.
- 12. The guarantor agrees that it shall be liable for all litigation costs incurred by the NRC in any successful effort to enforce the agreement against the guarantor.
- 13. The guarantor agrees to remain bound under this self-guarantee for as long as it, as licensee, must comply with the applicable financial assurance requirements of 10 CFR Part 50, for the previously listed facilities, except that the guarantor may cancel this self-guarantee by sending notice by certified mail to the NRC, such cancellation to become effective not before an alternative financial assurance mechanism has been put in place by the guarantor.
- 14. The guarantor agrees that if it, as licensee, fails to provide alternative financial assurance as specified in 10 CFR Parts 50 and 70 and obtain written approval of such assurance from the NRC within 90 days after a notice of cancellation by the guarantor is received by the NRC from the guarantor, the guarantor shall make full payment under the self-guarantee.
- 15. The guarantor expressly waives notice of acceptance of this self-guarantee by the NRC. The guarantor also expressly waives notice of amendments or modifications of the decommissioning requirements.
- 16. If the guarantor files financial reports with the U.S. Securities and Exchange Commission, then it shall promptly submit them to its independent auditor and to the NRC during each year in which this self-guarantee is in effect.
- 17. The guarantor agrees that if, at any time before termination of this self-guarantee, its most recent bond issuance ceases to be rated in the category of "A" or above by either Standard &
Poor's or Moody's, it'shall provide notice in writing of such fact to NRC within 20 days after publication of the change by the rating service.
I hereby certify that this self-guarantee is true and correct to the best of my knowledge.
Effective date:
A0 Reed College By:
Edwin 0. Mcapne, VP/Treasurer State of Oregon, County of Multnomah VMAN NORMAN efore me this 2 9 th day of October, 2010.
NOTARY PUBUG4OREGON Sine COMMISSION NO. 433488 MY COMMISSION EPIRES NOV. 13, 2012 Vivian Norman, Notary Public - State of Oregon