ML14202A328
| ML14202A328 | |
| Person / Time | |
|---|---|
| Site: | Dow Chemical Company |
| Issue date: | 07/23/2014 |
| From: | Geoffrey Wertz Research and Test Reactors Licensing Branch |
| To: | Dittenber T Dow Chemical Co |
| Wertz G | |
| References | |
| TAC M79548 | |
| Download: ML14202A328 (4) | |
Text
July 23, 2014 Tina Dittenber Senior Paralegal, EH&S Legal The Dow Chemical Company 2030 Dow Center Midland, MI 48674
SUBJECT:
DOW CHEMICAL COMPANY RE: REVIEW OF THE DOW CHEMICAL COMPANY SURETY BOND INCREASE RIDER AND UPDATED STANDBY TRUST AGREEMENT (TAC NO. M79548)
Dear Ms. Dittenber:
By letter dated March 27, 2014, the Dow Chemical Company (Dow) submitted an update of its financial surety bond for the Dow TRIGA Research Reactor (DTRR) Facility (a copy is available on the U.S. Nuclear Regulatory Commissions (NRCs) public Web site at www.nrc.gov under Agencywide Documents Access and Management System (ADAMS) Accession No. ML14133A018). Dow is currently providing financial assurance for decommissioning with a surety bond, as allowed by Title 10 of the Code of Federal Regulations (10 CFR)
Section 50.75(e)(1)(iii)(A), which states, [a] surety method may be in the form of a surety bond, or letter of credit.
By letter dated March 27, 2014, Dow indicated that it has updated the value of the Surety Bond to $5,789,871, increased the Surety Bond Rider, and updated the Standby Trust Agreement Schedules A and B. The increase of the Surety Bond to $5,789,871 reflects the decommissioning cost adjustment due to the annual inflation factor. As stated in the safety evaluation report for the renewal of the facility operating license for the DTRR (ADAMS Accession No. ML12137A181), Dow committed to review and update the Surety Bond Rider annually, to reflect the DTRR decommissioning cost estimate of the current year.
The NRC staff verified that the surety company indicated in the submittal, Safeco Insurance Company of America, is listed by the U.S. Department of the Treasury in Circular 570 as of June 20, 2014, and has an underwriting limitation of $118,867,000, which is sufficient to cover the cost estimates for which assurance is sought. The NRC staff finds that the existing surety of
$5,789,871 is sufficient to meet the requirements of 10 CFR 50.75.
If you have any questions, please contact me at 301-415-0893 or by electronic mail at Geoffrey.Wertz@nrc.gov.
Sincerely,
/Alexander Adams for RA/
Geoffrey A. Wertz, Project Manager Research and Test Reactors Licensing Branch Division of Policy and Rulemaking Office of Nuclear Reactor Regulation Docket No. 50-264 cc: See next page
- by memo dated NRR-106 OFFICE NRR/DPR/PRLB/PM NRR/DPR/PRLB/LA NRR/DIRS/IFIB/(A)BC**
NRR/DPR/PRLB/BC NRR/DPR/PRLB/PM NAME (LTran for) GWertz PBlechman MDusaniwskyj AAdams (AAdams for) GWertz DATE 07/23/2014 07/23/2014 07/14/2014 07/23/2014 07/23/2014
Dow Chemical Company Docket No. 50-264 cc:
Office of the Mayor 333 West Ellsworth Midland, MI 48640 Office of the Governor Room 1 - Capitol Building Lansing, MI 48913 Paul J. OConnor, Ph.D.
Facility Director Dow Chemical TRIGA Research Reactor Dow Chemical Company 1602 Building Midland, MI 48674 Mr. Jim Weldy Radiation Safety Officer The Dow Chemical Company 1803 Building Midland, MI 48674 Ms. Shari Kennett Environmental Health and Safety Responsible Care Leader Chair, Radiation Safety Committee The Dow Chemical Company 1790 Building Midland, MI 48674 Dr. Wayde Konze Global Research and Development Director for Analytical Sciences Chair, Reactor Operations Committee The Dow Chemical Company 1897 Building Midland, MI 48667 Test, Research, and Training Reactor Newsletter University of Florida 202 Nuclear Sciences Center Gainesville, FL 32611 Radiological Protection Section Office of Waste Management and Radiological Protection Michigan Department of Environmental Quality 525 West Allegan Street P.O. Box 30473 Lansing MI 48909-7973