ML11271A084
| ML11271A084 | |
| Person / Time | |
|---|---|
| Site: | 07000113, Pennsylvania State University |
| Issue date: | 11/15/2011 |
| From: | Ryder C NRC/NMSS/FCSS/FCLD/FMB |
| To: | Boeldt E Pennsylvania State Univ |
| Ryder C | |
| References | |
| Download: ML11271A084 (3) | |
Text
November 15, 2011 Mr. Eric Boeldt Manager of Radiation Protection Pennsylvania State University 304 Old Main University Park, PA 16802-1504
SUBJECT:
FINANCIAL ASSURANCE AND DEMONSTRATION OF REPEAT PASSAGE OF THE FINANCIAL TEST ASSOCIATED WITH A SELF-GUARANTEE AGREEMENT FOR LICENSE NOS. R-2 AND SNM-95
Dear Mr. Boeldt:
Pennsylvania State University (PSU) currently holds two U.S. Nuclear Regulatory Commission (NRC) licenses - one for the operation of a nonpower reactor issued under Part 50 of Title 10 of the Code of Federal Regulations (10 CFR Part 50) and the other for the use and possession of special nuclear material (SNM) issued under 10 CFR Part 70.1 Licensees holding Parts 50 and 70 licenses are required to provide Financial Assurance (FA) for decommissioning pursuant to 10 CFR 50.75 and 70.25, respectively. PSU has chosen to satisfy the FA requirements for its NRC licenses through the use of a self-guarantee provided for under 10 CFR Part 30, Appendix E. In reviewing the docket for PSUs SNM License, SNM-95, it is unclear whether the most recent Self Guarantee (SG) PSU submitted by letter dated June 11, 2009 (Agencywide Documents Access and Management System [ADAMS] ML092030312), is intended to meet PSUs FA requirements for its Part 70 materials license, as well as for its Part 50 reactor license. Additionally, after reviewing both dockets for PSUs Parts 50 and 70 licenses, it does not appear that PSU has complied with the requirement that it demonstrate yearly that it continues to pass the financial test set forth in 10 CFR Part 30, Appendix E, Section II, or that it has complied with the requirement in 10 CFR 70.25(e) to update the decommissioning cost estimate for its SNM license no less frequently than triennially.
By cover letter dated July 12, 2007, PSU relied on a SG as FA for reactor license R-2, SNM License SNM-95, and others NRC licenses, which have since been transferred to the Agreement State. On June 11, 2009, during the renewal of its reactor license, PSU submitted a Self Guarantee Agreement that appears to cover the estimated costs of decommissioning associated with only the reactor license R-2. It is unclear whether this SG replaces the SG submitted by cover letter dated July 12, 2007; and therefore, it is unclear whether PSUs materials license is covered by the SG.
In addition, 10 CFR Part 30, Appendix E, Section II.C.2, states that [a]fter the initial financial test, the licensee must repeat passage of the test within 90 days after the close of each succeeding fiscal year. PSU has also committed in both the 2007 and 2009 SGs to submit its 1 Prior to the Commonwealth of Pennsylvania becoming an NRC Agreement State in 2008, PSU had also held four 10 CFR Part 30 material licenses. However, these Part 30 materials licenses have since been transferred to the Agreement State, which now oversees their financial assurance compliance.
audited financial statements and the financial test data annually within 180 days of the close of its fiscal year.
While 10 CFR Part 30, Appendix E, Section II.C.(3), requires a licensee to notify NRC when it no longer meets the criteria of 10 CFR Part 30, Appendix E, Section I, PSUs commitment to provide the NRC with the results of the financial test yearly provides the NRC staff with assurance that the SG provides adequate FA.
Therefore, the NRC staff is requesting that PSU: (1) update its decommissioning cost estimate for its SNM license, SNM-95; (2) submit a revised SG agreement for SNM-95 if an increase in FA is required by the updated cost estimate, or, if no increase is required by the updated cost estimate, clarify whether the SG submitted by PSU in 2009, covers its Part 70 materials license, and if not, clarify which financial instrument does provide the required FA; and (3) formally submit documentation that demonstrates repeat passage of the financial test for the fiscal year that ended June 30, 2011, no later than December 30, 2011.
In accordance with 10 CFR 2.390 of the NRC's "Rule of Practice," a copy of this letter will be available electronically for public inspection in the NRC Public Document Room or from the Publicly Available Records System component of the NRC's ADAMS. ADAMS is accessible from the NRC web site at http://www.nrc.gov/reading-rm/adams.html (the Public Electronic Reading Room).
If you have any questions regarding this matter, please contact me at 301-492-3189 or via E-mail at christopher.ryder@nrc.gov.
Sincerely,
/RA/
Christopher Ryder, Project Manager Fuel Manufacturing Branch Division of Fuel Cycle Safety and Safeguards Office of Nuclear Material Safety and Safeguards Docket Nos.: 70-113, 50-5 License Nos.: SNM-95, R-2
audited financial statements and the financial test data annually within 180 days of the close of its fiscal year.
While 10 CFR Part 30, Appendix E, Section II.C.(3), requires a licensee to notify NRC when it no longer meets the criteria of 10 CFR Part 30, Appendix E, Section I, PSUs commitment to provide the NRC with the results of the financial test yearly provides the NRC staff with assurance that the SG provides adequate FA.
Therefore, the NRC staff is requesting that PSU: (1) update its decommissioning cost estimate for its SNM license, SNM-95; (2) submit a revised SG agreement for SNM-95 if an increase in FA is required by the updated cost estimate, or, if no increase is required by the updated cost estimate, clarify whether the SG submitted by PSU in 2009, covers its Part 70 materials license, and if not, clarify which financial instrument does provide the required FA; and (3) formally submit documentation that demonstrates repeat passage of the financial test for the fiscal year that ended June 30, 2011, no later than December 30, 2011.
In accordance with 10 CFR 2.390 of the NRC's "Rule of Practice," a copy of this letter will be available electronically for public inspection in the NRC Public Document Room or from the Publicly Available Records System component of the NRC's ADAMS. ADAMS is accessible from the NRC web site at http://www.nrc.gov/reading-rm/adams.html (the Public Electronic Reading Room).
If you have any questions regarding this matter, please contact me at 301-492-3189 or via E-mail at christopher.ryder@nrc.gov.
Sincerely,
/RA/
Christopher Ryder, Project Manager Fuel Manufacturing Branch Division of Fuel Cycle Safety and Safeguards Office of Nuclear Material Safety and Safeguards Docket Nos.: 70-113, 50-5 License Nos.: SNM-95, R-2 DISTRIBUTION:
FMB r/f JDwyer/R-I JSimpson/NRR ML11271A084 OFFICE FMB FSME FMB OGC FMB NAME LAllan LChang RJohnson TStokes CRyder DATE 9/29/11 9/29/11 10/24/11 11/03/11 11/ 15 /11 OFFICIAL RECORD COPY