ML19238A270

BWXT - Interim Approval of Chapter 10, Decommissioning (L-2018-LLA-0312)

ML19238A270
Person / Time
Site:	BWX Technologies
Issue date:	09/05/2019
From:	Kevin Ramsey NRC/NMSS/DFCSE/FLB
To:	Terry C BWXT
Ramsey K
Shared Package
ML19238A262	List: ML19238A268 ML19238A269 ML19238A270
References
EPID L-2018-LLA-0312
Download: ML19238A270 (3)

Text

UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 September 5, 2019 Mr. Chris T. Terry, Manager Licensing and Safety Analysis BWXT Nuclear Operations Group, Inc.

P.O. Box 785 Lynchburg, VA 24505

SUBJECT:

BWXT NUCLEAR OPERATION GROUP, INC. INTERIM APPROVAL OF CHAPTER 10, DECOMMISSIONING (ENTERPRISE PROJECT IDENTIFIER L-2018-LLA-0312)

Dear Mr. Terry:

We have reviewed your updated decommissioning cost estimate submitted by letter dated November 2, 2018 (Agencywide Document Access and Management System (ADAMS)

Number ML18320A096) and supplemented by letter dated July 18, 2019 (ADAMS Accession Number ML19204A270). We approve the updated estimate of $36.7 million for the cost of decommissioning. Specifically, we find that the cost estimate is based on reasonable and documented assumptions, it is based on the costs of a third-party contractor, it does not take credit for any salvage value, it includes a 25 percent contingency factor and it adequately estimates the cost to carry out required decommissioning activities before license termination.

We request that you submit the following documents within 30 days of the date of this letter:

• Signed originals of the financial instruments that guarantee the funds,

• An updated certification of financial assurance, and

• A finalized and dated copy of Chapter 10.

Although we found your overall cost estimate acceptable, our independent evaluation noted several differences in the unit costs. Examples are provided in Enclosure 1. In addition, the U.S. Department of Energy is making progress on the disposal of Greater Than Class C waste which may change the cost estimates for waste disposal. We request that you rebaseline your unit costs when you prepare the next update to your cost estimate.

Your submittal was assigned Enterprise Project Identifier (EPID) L-2018-LLA-0312. The EPID is considered CLOSED. A new EPID will be assigned for the review and approval of the documents discussed above. Our Safety Evaluation Report is provided in Enclosure 2.

In accordance with Title 10 of the Code of Federal Regulations Section 2.390, Public inspections, exemptions, requests for withholding, a copy of this letter will be available electronically for public inspection in the NRC Public Document Room or from ADAMS. ADAMS is accessible from the NRC Web site at: http://www.nrc.gov/reading-rm/adams.html (the Public Electronic Reading Room).

C. Terry 2 If you have any questions concerning this letter, please contact me at (301) 415-7506, or via e-mail to Kevin.Ramsey@nrc.gov.

Sincerely,

/RA/

Kevin M. Ramsey, Senior Project Manager Fuel Facility Licensing Branch Division of Fuel Cycle Safety, Safeguards, and Environmental Review Office of Nuclear Material Safety and Safeguards Docket No. 70-27 License No. SNM-42

Enclosures:

1. Unit Cost Analysis

2. Safety Evaluation Report

C. Terry 3

SUBJECT:

BWXT NUCLEAR OPERATION GROUP, INC. INTERIM APPROVAL OF CHAPTER 10, DECOMMISSIONING (ENTERPRISE PROJECT IDENTIFIER L-2018-LLA-0312)

DATED: September 5, 2019 DISTRIBUTION:

FCSE r/f NPitoniak, RII EMichel, RII AAlejandro, RII KKline, DUWP ADAMS Accession Numbers: ML19238A262 (P), ML19238A270 (L), ML19238A268 (Encl. 1),

ML19238A269 (Encl. 2) via email OFFICE NMSS/FCSE/FFLB/PM NMSS/FCSE/FFLB/LA NMSS/DUWP/RTAB/BC NMSS/FCSE/FFLB/BC NAME KRamsey ELee CMcKenney JZimmerman DATE 08/28/2019 08/28/2019 09/03/2019 09/03/2019 OFFICIAL RECORD COPY