ML16203A154

Supplemental Response to Request for Additional Information Regarding Application for Change in Method of Providing Financial Protection

ML16203A154
Person / Time
Site:	Aerotest
Issue date:	07/12/2016
From:	Silberg J Pillsbury, Winthrop, Shaw, Pittman, LLP
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
Download: ML16203A154 (5)

Text

Pillsbury Winthrop Shaw Pittman LLP 1200 Seventeenth Street NW I Washington, DC 20036-3006 I tel 202.663.8000 I fax 202.663.8007 ,

Jay E. Silberg tel: 202.663.8063 j ay.silberg@pills bury law .com July 12, 2016 ATTENTION: Document Control Desk U.S. Nuclear Regulatory Commission Washington, DC 205550-0001 AEROTEST RADIOGRAPHY AND RESEARCH REACTOR DOCK.ET NO. 50-228/LICENSE NO. R-98 SUPPLEMENTAL RESPONSE TO REQUEST FOR ADDITIONAL INFORMATION RE: APPLICATION FOR A CHANGE IN METHOD OF PROVIDING FINANCIAL PROTECTION (TAC NO. MF6254)

Ladies and Gentlemen:

By letter dated June 15, 2016, the undersigned on behalf of Autoliv ASP, Inc.

("Autoliv") submitted a series of documents in the response to the NRC's January 20, 2016 request that it provide additional information with regard to its request to ch~nge the method of providing financial protection for the Aerotest Radiography and Research Reactor. By email dated July 8, 2106," the NRC Staff discussed various revisions to the documents submitted by Autoliv. Among the revisions were whether Autoliv was required to file a Form lOK and whether Autoliv's fiscal year ended on December 31. As conveyed to the NRC Staff to telephone yesterday, although Autoliv is not required to file a Form 1OK, Autoliv's parent, Autoliv, Inc., is so required. As also conveyed to the NRC Staff yesterday, Autoliv's fiscal year does end on December 31.

As also discussed in the July 8 email, the NRC Staff asked that Autoliv determine whether Schedules A, B and C and the Certificate of Events to the Standby Trust Agreement were applicable. If so, the Staff asked Autoliv to provide those documents, or alternatively to indicate where the information is provided elsewhere, or to delete references to those documents in the Standby Trust Agreement. In response to the Staffs inquiry, attached hereto are draft Schedules A, Band C and the Certificate of Events that are referenced in the draft Standby Trust Agreement that was provided on June 15. We would appreciate any comments or questions that you

• www.pillsburylaw.com 4816-4967-5572.vl

July 12, 2016 Page2 may have with respect to those documents so that we may address those issues when we submit the final version of the financial protection documents.

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Counsel for Aerotest Operations, Inc.

Enclosures:

1. Schedules A, B and C, and Certificate of Events cc: NRC, NRR (Helvenston) (by e-mail)

NRC, OGC (Kanatas) (by e-mail) www.pillsburylaw.com 4816-4967-5572.vl

Standby Trust Agreement Schedules Schedule A This Agreement demonstrates financial protection for the following prescribed amounts for the following licensed activity:

U.S . NUCLEAR REGULATORY FINANCIAL PROTECTION COMMISSION NAME AND ADDRESS OF AMOUNT DEMONSTRATED LICENSE ADDRESS OF LICENSED BY THIS NUMBER LICENSEE ACTIVITY AGREEMENT R-98 Aerotest Operations, Inc. same $1 ,500 ,000 3455 Fostoria Way San Ramon, CA The financial protection amount listed here was approved by NRC in 10 CFR § 140.11 (a)(2) .

Schedule B DOLLAR AMOUNT *$ 1,500 ,000 AS EVIDENCED BY cash , securities , other liquid assets

• Trust initial deposit will be . Trust will not be funded until the Granter has issued a Certificate of Event to the Trustee that an event requiring financial protection has been declared under 10 CFR Part 140.

Schedule C Wells Fargo Bank, National Association 1700 Lincoln St, 10th Floor Denver, CO 80203 Attention : Michael W . McGuire; Corporate , Municipal and Escrow Solutions Telephone : (303) 863-6425 Facsimile: (303) 863-5645 E-mail: michael .w .mcguire@wellsfargo.com Acceptance fee Waived A one-time fee for our initial review of governing documents, account set-up and customary duties and responsibilities related to the closing. This fee is payable at closing.

Annual administration fee

An annual fee for customary administrative services provided by the trustee , including daily routine account management; investment transactions, cash transactions processing (including wire and check processing), disbursement of funds in accordance with the agreement, tax reporting for one entity, and providing account statements to the parties. The administration fee is payable annually in advance per escrow account established. The first installment of the administrative fee is payable at closing.

Legal counsel fees and expenses None anticipated Wells Fargo does not anticipate hiring outside legal counsel and intends to use internal resources to review the governing documents. Wells Fargo reserves the right, at its sole discretion, to hire outside counsel if deemed necessary or advisable.

Out-of-pocket expenses At cost Out-of- pocket expenses will be billed as incurred at cost at the sole discretion of Wells Fargo.

Extraordinary services Standard rate The charges for performing services not contemplated at the time of execution of the governing documents or not specifically covered elsewhere in this schedule will be at Wells Fargo's rates for such services in effect at the time the expense is incurred.

Certificate of Events Wells Fargo Bank, National Association 1700 Lincoln St, 10th Floor Denver, CO 80203 Attention: Michael W. McGuire; Corporate, Municipal and Escrow Solutions Telephone: (303) 863- 425 Facsimile: (303) 863-5645 Email: michael. .mcguire@wel sfargo.com

[ Gentlemen:

In accordance with t e terms of the Standby Trust Agreement with you dated June_,

2016, I, , Secretary of Aerotest 0 e ations, Inc. , hereby certify that the followin g events have occurred:

1. An even requiring financial protection has been declared pursuant to 10CFRPart140.

2. The U.S. Nuclear, Regulatory: ommission has been given prior notice of Aero test Operations, lnCJ 's

• ntenl: o itlidraw funds ti om the Trust Fund established under the terms of the Standby Trust gree ent.

Dated