ML18193A141

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Response to Fourth Request for Extension of Time to Respond to Letter Regarding Irrevocable Standby Letter of Credit for the Aerotest Radiography and Research Reactor
ML18193A141
Person / Time
Site: Aerotest
Issue date: 07/16/2018
From: Edward Helvenston
Research and Test Reactors Licensing Projects Branch
To: Slaughter D
Aerotest
Helvenston E
References
EPID L-2017-PMP-0014
Download: ML18193A141 (3)


Text

July 16, 2018 Dr. David M. Slaughter, President and Reactor Administrator Aerotest Operations, Inc.

3455 Fostoria Way San Ramon, CA 94583

SUBJECT:

AEROTEST OPERATIONS, INC. - RESPONSE TO FOURTH REQUEST FOR EXTENSION OF TIME TO RESPOND TO LETTER REGARDING IRREVOCABLE STANDBY LETTER OF CREDIT FOR THE AEROTEST RADIOGRAPHY AND RESEARCH REACTOR (EPID NO. L-2017-PMP-0014)

Dear Dr. Slaughter:

By letter dated March 8, 2018 (Agencywide Documents Access and Management System (ADAMS) Accession No. ML18054A077), the U.S. Nuclear Regulatory Commission (NRC) staff sent Aerotest Operations, Inc. (Aerotest) a request that Aerotest respond within 30 days of its receipt of that letter to explain how it complies, or plans on complying, with the license transfer condition that its irrevocable standby letter of credit conforms to the guidance provided in NRC Regulatory Guide (RG) 1.159, Assuring the Availability of Funds for Decommissioning Nuclear Reactors. The current version of RG 1.159, Revision 2, dated October 2011, may be found at ADAMS Accession No. ML112160012.

By letters dated March 27, 2018; May 7, 2018; and June 1, 2018 (ADAMS Accession Nos. ML18092A087, ML18130A578, and ML18156A130, respectively), Aerotest requested additional time beyond the deadline in the NRC staffs March 8, 2018, letter to respond to the March 8, 2018, letter. The NRC staff accepted Aerotests respective requests by letters dated April 3, 2018; May 16, 2018; and June 7, 2018 (ADAMS Accession Nos. ML18087A340, ML18128A034, and ML18155A603, respectively).

By letter dated July 10, 2018 (ADAMS Accession No. ML18197A080), Aerotest requested that the deadline to respond to the NRC staffs March 8, 2018, letter be extended again such that the new deadline would be 120 days beyond the original deadline to respond to the NRC staffs March 8, 2018, letter. Aerotest stated that its July 10, 2018, extension request was necessary because it is awaiting acceptance of language for the letter of credit by Bank of the West (BoW),

or the proposal of alternate language by BoW. Aerotest additionally stated that, in the event BoW is unable to accept the necessary language for the letter of credit, Aerotest is also working with an alternate financial institution to furnish an acceptable letter of credit.

The NRC staff accepts Aerotests fourth extension request dated July 10, 2018.

In its letter dated July 10, 2018, Aerotest also discussed possible language for a letter of credit to require notice to Aerotest and the NRC of events that could affect the issuing financial institutions ability to fulfill its obligation under the letter of credit. The NRC staff notes that this language differs from the RG 1.159, Appendix A-5, example wording for an irrevocable standby

D. Slaughter letter of credit for a nuclear reactor licensee. The NRC staff notes that, if Aerotest submitted a revised letter of credit with language that differs from the example wording in RG 1.159, Appendix A-5, the NRC staff would review the alternative language to determine whether the letter of credit adequately conforms to the guidance in RG 1.159, as required by the license transfer condition, or whether additional revisions to the letter of credit are required.

If you have any questions, or need additional time to respond to the NRC staffs original March 8, 2018, request please contact me at 301-415-4067, or by electronic mail at Edward.Helvenston@nrc.gov.

Sincerely,

/RA/

Edward Helvenston, Project Manager Research and Test Reactors Licensing Branch Division of Licensing Projects Office of Nuclear Reactor Regulation Docket No. 50-228 License No. R-98 cc: Sandy Warren, General Manager Aerotest Operations, Inc.

3455 Fostoria Way San Ramon, CA 94583 California Energy Commission 1516 Ninth Street, MS-34 Sacramento, CA 95814 Radiologic Health Branch P.O. Box 997414, MS 7610 Sacramento, CA 95899-7414 Test, Research and Training Reactor Newsletter P.O. Box 118300 University of Florida Gainesville, FL 32611

ML18193A141 *concurred via email OFFICE NRR/DLP/PRLB/PM* NRR/DLP/LA* NRR/DLP/PRLB/BC NRR/DLP/PRLB/PM NAME EHelvenston NParker AAdams EHelvenston DATE 7/16/2018 7/13/2018 7/16/2018 7/16/2018